Skoda Auto, the Czech car maker, has announced that it will be making India its export hub as it prepares to begin exporting vehicle kits for assembly in Vietnam next year. The move is part of Skoda Auto’s plan to expand its global footprint, as it seeks to tap into new markets in Asia and beyond.
Skoda Auto, which is owned by Volkswagen Group, has seen a surge in vehicle sales in India, with a whopping 125% year-on-year increase to 53,721 units in 2022. The company is hoping to continue this growth trajectory and achieve double-digit sales growth this year as well.
Volkswagen Group, of which Skoda Auto is a subsidiary, also saw strong sales growth in India, with an 85.48% year-on-year increase to 1,01,270 units in 2022.
By making India its export hub, Skoda Auto aims to take advantage of the country’s growing importance as a global manufacturing hub. The country’s large and growing middle class, combined with its skilled workforce and business-friendly policies, make it an attractive destination for foreign investment.
The company plans to initially export vehicle kits for assembly in Vietnam, which will then be sold in that market. Skoda Auto is also exploring opportunities to export to other markets in the region, including Southeast Asia and the Middle East.
This move is part of Skoda Auto’s broader strategy to expand its global footprint and increase its sales in key markets around the world. The company has already made significant investments in new production facilities and research and development centers in Europe, China, and India.
As part of its expansion plans, Skoda Auto is also focusing on developing electric and hybrid vehicles, as well as autonomous driving technology. The company aims to have at least 50% of its vehicles electrified by 2030, as it seeks to reduce its carbon footprint and meet global emissions standards.
