ŠKODA AUTO continues to advance the corporate’s internationalisation and is on the cusp of getting into the Vietnamese market. In cooperation with its native accomplice, the Thanh Cong Motor Vietnam (TC Motor) the Czech carmaker will likely be providing the primary European fashions within the nation as early as 2023. The meeting of CKD (Utterly Knocked Down) kits of the KUSHAQ and SLAVIA fashions will begin in 2024. The manufacturing line is at present underneath development. With its dynamically rising economic system and vital potential on the automotive market, the nation presents the best situations to additional strengthen ŠKODA AUTO’s place within the area. The corporate anticipates an preliminary gross sales quantity of 30,000 automobiles per yr.
“For ŠKODA AUTO, getting into the Vietnamese market is the subsequent logical step in our internationalisation technique. Our enticing mannequin portfolio presents precisely the correct merchandise for our clients, and we will play to our strengths on this extremely dynamic market. As well as, the geographical proximity to India supplies nice synergy results; as early as 2024, we will likely be exporting car kits from our Indian plant in Pune to Vietnam, marking a serious development of our INDIA 2.0 challenge. Finally, this can considerably strengthen our presence in Southeast Asia.”
Klaus Zellmer, ŠKODA AUTO CEO
“Internationalising our enterprise is an integral a part of our NEXT LEVEL – ŠKODA STRATEGY 2030. We see appreciable progress potential in Vietnam, and the Czech presidency of the EU Council and the EVFTA free commerce settlement create very beneficial financial coverage situations. We’ve got additionally discovered a robust and dependable accomplice within the TC Motor to shortly acquire a foothold in Vietnam. We’re satisfied that our mannequin portfolio completely displays the needs of the Vietnamese individuals, and we’re trying ahead to launching early subsequent yr.”
Martin Jahn, ŠKODA AUTO Board Member for Gross sales and Advertising
Thanh Cong Motor Vietnam (TC Motor) is the accomplice accountable for native manufacturing and gross sales
Initially, the KODIAQ, KAROQ, SUPERB and OCTAVIA mannequin collection will successively be imported from Europe, beginning in 2023. As ŠKODA AUTO’s native accomplice within the Vietnamese market, the TC Motor will take over the native manufacturing and distribution of the automobiles. With over 20 years of expertise in car manufacturing and gross sales on a contract foundation, the Hanoi-based group can be investing within the acquisition and improvement of commercial websites, such because the Viet Hung Industrial Park. Sooner or later, ŠKODA fashions will likely be rolling off the manufacturing line on the website in Quang Ninh province.
CKD manufacturing of KUSHAQ and SLAVIA as early as 2024, ENYAQ iV household accessible after 2025
The development of a TC Motor-owned manufacturing line is already underway and must be accomplished within the first half of 2024. Meeting of the made-in-India KUSHAQ and SLAVIA mannequin collection from CKD format will then start in 2024. The KUSHAQ will likely be accessible to order within the first half of 2024, and orders for the SLAVIA may be positioned from the fourth quarter of 2024. A 16,000-square-metre plant is being in-built Pune to fabricate the respective subassemblies. The all-electric ENYAQ iV household fashions will spherical off the native portfolio in Vietnam after 2025.
Exporting automobiles from India is the subsequent step within the INDIA 2.0 challenge
By exporting automobiles from India, ŠKODA AUTO is urgent forward with the implementation of the INDIA 2.0 challenge and emphasising India’s strategic significance within the automaker’s improvement. Exports of the primary left-hand drive ŠKODA KUSHAQ to the Gulf States started just lately. ŠKODA AUTO has led the Volkswagen Group’s actions on the Indian market since 2019. The Group’s investments thus far quantity to at least one billion euros, of which 250 million euros have been allotted to analysis and improvement. In the long run, ŠKODA goals to realize a market share of 5 p.c alongside the Volkswagen model, relying on market and phase developments.
Fast growth of the seller community in Vietnam, excessive gross sales potential
The automobiles will likely be distributed by way of a regional seller community of native companions. The primary dealerships are deliberate in Hanoi and Ho Chi Minh Metropolis – taken collectively, these two cities report the overwhelming majority of latest automotive gross sales in Vietnam. Subsequently, ŠKODA AUTO expects to shortly develop the seller community to incorporate greater than 50 companions. ŠKODA AUTO initiatives an annual gross sales potential of 30,000 items initially and over 40,000 items yearly from 2030, thanks partly to curiosity in quantity fashions primarily based on the MQB-A0-Global platform and rising demand for electrical automobiles within the nation’s main cities.
Strongly rising economic system, extremely dynamic automotive market and free commerce agreements incentivise engagement
Coming into Vietnam can be worthwhile because of the notably dynamic progress of the area’s automotive market; regardless of having a inhabitants of round 100 million individuals and at present solely round 34 automobiles per 1,000 inhabitants, the nation is already the fourth strongest automotive market in Southeast Asia. On the identical time, European manufacturers are prone to turn into more and more outstanding in Vietnam because of the gradual elimination of customs duties on items from the EU by 2030. For that reason, ŠKODA AUTO expects the whole annual market quantity to extend to round a million automobiles past 2030.