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India very important for Skoda as future export hub

Written by AnantaSaranNayak

Skoda India is garnering significant sales growth in India last year. All thanks to the successful launch of their Kushaq and Slavia models. In 2022, Skoda India retailed a total of 51,865 cars, representing a 128 per cent increase from the previous year. This strong sales performance helped Skoda become the 9th largest automotive brand in the Indian market.

In fact, the Indian market has become Skoda’s third-largest sales market. Thus surpassing the UK, where they sold a total of 50,000 units. Understandably enough, Skoda’s leading sales markets remain Germany, where they sold a total of 1,34,300 units, and the Czech Republic, their home market, where they sold 71,200 units. This impressive sales growth in India is a testimony of Skoda’s strong growth trends in the 2022 market.

Vietnamese Market Will Play A Major Role In Skoda

Going forward Skoda has plans to assemble CKD Cars from India in Vietnam. With Kushaq and Slavia, Skoda more than doubled its vehicle deliveries last year. This represents its success in expanding its global presence. Thus, to expand its presence in Vietnam, Skoda has ambitious plans to sell 30,000 vehicles annually. This will include imports from Europe, and then India, to begin local assembly.

The company will make the most out of its proximity to India and assemble CKD (Completely Knocked Down) cars from the Skoda Auto production plant in Pune, India. The CKD operations will take place at Thanh Cong Motor Vietnam’s own production line. This has a target of being completed in H1 2024. As of now, we understand that the CKD-assembled cars from India will include the Kushaq and Slavia.

Skoda Has Big Plans For Global Dominance

The company also has big plans to strengthen its presence in markets beyond Southeast Asia. All of this will start from the Vietnamese market. In time, Skoda will also look into penetrating other ASEAN markets. Skoda mentioned that it sees massive growth potential in Vietnam, the Middle East, and other ASEAN markets.

Another key highlight is that the EU-Vietnam Free Trade Agreement will eliminate most tariffs and reduce regulatory barriers. Thus, enabling rapid expansion to more than 50 dealers. This agreement will also facilitate Skoda’s goal to rise to 40,000 deliveries by 2030. With this strategic move, Skoda aims to diversify its geographic footprint and tap into new customer segments.

Also Read: Next-gen Skoda Kodiaq SUV starts road testing overseas.