Skoda Kushaq and Slavia Drives Impressive Sales Growth in India in 2022, and move into Vietnam via CKD Assembly in 2024
Skoda experienced significant sales growth in India last year due to the successful launch of their Kushaq and Slavia models. In 2022, Skoda India sold 51,865 cars, representing 128 percent increase from the previous year. This strong performance helped Skoda become the 9th largest automotive brand in the Indian market.
In fact, India has become Skoda’s third largest sales market, surpassing the UK, where they delivered 50,000 units. However, Skoda’s leading sales markets remain Germany, where they sold 134,300 units, and the Czech Republic, their home market, where they sold 71,200 units. This impressive growth in India indicates Skoda’s strong growth trends in the 2022 market. And most immortally, their ability to produce successful models that resonate with consumers.
Skoda Plans to Assemble CKD Cars from India in Vietnam – Kushaq and Slavia
In India, Skoda more than doubled its vehicle deliveries last year, demonstrating its success in expanding its global presence.To expand its presence in Vietnam, Skoda plans to sell 30,000 vehicles annually. This includes imports from Europe, and then India, to begin local assembly.
The company will leverage its proximity to India and assemble CKD (Completely Knocked Down) cars from the Skoda Auto production plant in Pune, India. CKD ops will take place at Thanh Cong Motor Vietnam’s own production line, which will be completed in H1 2024. CKD assembled cars from India will include the Kushaq and Slavia.
Skoda’s Success in India Sets the Stage for Sustainable Growth in Asia-Pacific Region
With focus on expanding its global presence through its Next Level – Skoda Strategy 2030, Skoda now enters Vietnam. The company aims to strengthen its presence in markets beyond Southeast Asia. And this starts with the strategically important Vietnamese market. In time, Skoda is expected to look into growth in other ASEAN markets.
India, is a key market where Skoda has clawed its way back to establish a stronger foothold than previous years. This enables the manufacturer to benefit from synergies across the two regions. And ultimately drive sustainable growth across the Asia-Pacific region.
Skoda Sees Growth Potential in Vietnam, Middle East, and other ASEAN markets
The EU-Vietnam Free Trade Agreement will eliminate most tariffs and reduce regulatory barriers, enabling rapid expansion to more than 50 dealers. This agreement will facilitate Skoda’s goal to rise to 40,000 deliveries from 2030.
Apart from Vietnam, Skoda also sees growth potential in the Middle East. This is a strategic move that will enable the company to diversify its geographic footprint and tap into new customer segments. By expanding its global presence, Skoda is taking a proactive approach to diversifying its revenue streams, while reducing its reliance on any single market. This strategy aligns with the company’s long-term vision and underscores its commitment to sustainable growth. As the automotive industry continues to evolve, Skoda’s focus on international expansion will position the company for success in the years to come.