Škoda Auto Volkswagen India Pvt Ltd on Tuesday said it will start exports to Vietnam from 2024 as part of its strategy to accelerate export operations in the ASEAN region.
The company, which has inaugurated its parts expedition centre (PEC) at the Volkswagen group's headquarters in Chakan, Pune, said 'made-in-India' kits will be shipped from India to Vietnam for final production.
The centre is spread over 16,800 square feet and it has an initial capacity of 27,000 car sets annually for Vietnam and has the infrastructure to scale up to 40,000 car sets annually, Škoda Auto Volkswagen India Pvt Ltd (SAVWIPL) said in a statement.
"With the opening of the parts expedition centre, we are building a bridge between India and Vietnam and setting the stage to unleash significant synergies between these two key markets," Škoda Auto Board Member for Production and Logistics Andreas Dick said.
While Vietnam will be the first phase, the PEC is geared to serve several emerging markets in the ASEAN region in the future, he added.
SAVWIPL said its export procedure entails parts being shipped to Vietnam through the port of Mumbai. Final assembly and customer delivery preparation will be executed at Škoda Auto's associated facility, TC Group, in Quãng Ninh province, Vietnam.
The dedicated production line in Vietnam is under construction and slated for commissioning in the first half of 2024, it added.
SUV Kushaq and sedan Slavia will be exported to Vietnam following the CKD (completely knock-down) assembly approach, the company said.
"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," SAVWIPL Managing Director & CEO Piyush Arora said.