SKODA KUSHAQ, SLAVIA to be exported from India to Vietnam
Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) has opened its parts expedition center (PEC) at the Volkswagen group's headquarters in Chakan, Pune. The subsidiary now aims to start exporting to Vietnam in 2024, as part of its strategy to grow export operations in the ASEAN region. The PEC will ship 'made-in-India' kits to Vietnam for final production, initially handling 27,000 car sets per year with the potential to increase to 40,000 car sets annually.
New parts expedition center aims to strengthen export capabilities
The PEC, spanning 16,800 square feet, is designed to serve multiple emerging markets in the ASEAN region, with Vietnam being the first phase. SAVWIPL's export process includes shipping parts to Vietnam via the port of Mumbai. Final assembly and customer delivery preparation will occur at Škoda Auto's partner facility, TC Group, in Quãng Ninh province, Vietnam. The dedicated production line in Vietnam is under construction and set to be commissioned in the first half of 2024.
KUSHAQ and SLAVIA models to be exported
SAVWIPL plans to export KUSHAQ and SLAVIA models to Vietnam using the completely knock-down (CKD) assembly approach. This method involves shipping individual parts and components for final assembly in the destination country. The CKD approach allows for lower import tariffs and increased localization of production, making it a cost-effective strategy for automakers looking to expand their presence in international markets.
Strategic advancement in export capabilities and sustainability
Piyush Arora, Managing Director and CEO of SAVWIPL said that the establishment of the parts expedition center represents a strategic advancement in the company's export capabilities. The facility combines modern infrastructure and sustainability, enabling SAVWIPL to cater more effectively to emerging markets. The PEC's inauguration marks a significant step in strengthening the company's presence in the ASEAN region and furthering its commitment to sustainable and efficient export operations.
