Škoda Auto has inaugurated its new Parts Expedition Centre in Pune, India. The approximately 16,000-square-metre facility will serve as a packaging area for completely-knocked-down (CKD) kits of the Kushaq and Slavia models produced in India. From there, the kits will be exported in containers to Vietnam for welding, painting and assembly. Construction of the production line in Quãng Ninh province in Vietnam is underway.
“With the opening of the new Parts Expedition Centre, we are paving the way for exporting CKD units from India to Vietnam. This represents a crucial step in effectively leveraging the synergies between these strategically important markets. As we gear up to export our products to additional emerging markets, the Parts Expedition Centre may also serve as a logistics hub for the ASEAN region.”
Andreas Dick, Škoda Auto Board Member for Production and Logistics
“This year marked the 600,000th car export for Škoda Auto Volkswagen India Private Limited from India. We have been serving key international markets from India, which is a testament of the engineering capabilities that exists here. The establishment of the Parts Expedition Centre represents a strategic advancement in our export capabilities. This facility combines modern infrastructure and sustainability, allowing us to cater more effectively to emerging markets. At the same time, we will keep underscoring our vision of making sustainable, quality mobility accessible worldwide.”
Piyush Arora, Managing Director & CEO of Škoda Auto Volkswagen India Private Limited
Synergies through geographical proximity: exporting India-produced CKD kits to Vietnam
In 2021, Škoda Auto unveiled the Kushaq for the Indian automotive market, with production located in Pune. The mid-size SUV, which is based on the MQB-A0-IN version of the modular transverse matrix, was developed in India. This was also the case for the Škoda Slavia saloon, launched a year later. Both models will be exported to Vietnam as CKD kits in the near future.
Parts will be shipped from the new logistics hub to Vietnam via the port of Mumbai. The vehicles will be assembled and prepared for delivery to customers at the plant owned by the TC Group, Škoda Auto’s Vietnamese partner, in Quãng Ninh province. The dedicated production line in Vietnam is under construction and due to open in the first half of 2024.
Škoda Auto expands into Vietnam
On 23 September, Škoda Auto officially entered the Vietnamese market, marking an important step in its internationalisation strategy. Customers can now purchase Karoq and Kodiaq models imported from Europe. The assembly of vehicles from CKD kits imported from India will begin in 2024, firstly with the Kushaq and shortly after, the Slavia. Škoda Auto is also exploring the prospect of introducing the Superb and Octavia models to the Vietnamese market in the near future. Looking ahead, the Czech carmaker plans to expand its line-up to include the Enyaq series in response to Vietnamese customers’ growing demand for e-vehicles.