Škoda Auto Expands Global Reach: New Parts Expedition Centre in India Boosts Supply Chain for Vietnamese Market

 

Škoda Auto Expands Global Reach: New Parts Expedition Centre in India Boosts Supply Chain for Vietnamese Market

Škoda Auto has recently unveiled its state-of-the-art Parts Expedition Centre in Pune, India, expanding its logistics network to meet the rising demands of the Vietnamese market. The newly inaugurated facility spans approximately 16,000 square meters and will function as a pivotal packaging area for completely-knocked-down (CKD) kits of the popular Kushaq and Slavia models, both produced in India.

The CKD kits will be meticulously packaged at the Pune centre and then transported in containers to Vietnam, where they will undergo welding, painting, and assembly. The construction of a dedicated production line in Quãng Ninh province, Vietnam, is already in progress, with an expected opening in the first half of 2024.

Andreas Dick, Škoda Auto Board Member for Production and Logistics, emphasized the significance of the Parts Expedition Centre, stating, "With the opening of the new Parts Expedition Centre, we are paving the way for exporting CKD units from India to Vietnam. This represents a crucial step in effectively leveraging the synergies between these strategically important markets."

Piyush Arora, Managing Director & CEO of Škoda Auto Volkswagen India Private Limited, highlighted the strategic advancement in export capabilities, combining modern infrastructure and sustainability. Arora stated, "This facility combines modern infrastructure and sustainability, allowing us to cater more effectively to emerging markets. At the same time, we will keep underscoring our vision of making sustainable, quality mobility accessible worldwide."

The geographical proximity between India and Vietnam is a key factor in this venture. Škoda Auto aims to exploit this proximity by exporting CKD kits from India to Vietnam, optimizing the logistics chain and capitalizing on emerging market opportunities. Parts will be shipped from the Pune hub to Vietnam through the port of Mumbai, where the TC Group, Škoda Auto's Vietnamese partner, will oversee the assembly and delivery of the vehicles.

In September 2023, Škoda Auto officially entered the Vietnamese market, offering models such as Karoq and Kodiaq imported from Europe. The assembly of vehicles from CKD kits imported from India is set to commence in 2024, starting with the Kushaq and followed closely by the Slavia. The company is also exploring the introduction of other models, such as Superb and Octavia, to the Vietnamese market. Additionally, Škoda Auto plans to respond to the growing demand for electric vehicles by introducing the Enyaq series in the near future.

In conclusion, Škoda Auto's expansion into the Vietnamese market, coupled with the establishment of the Parts Expedition Centre in India, marks a significant stride in the company's internationalization strategy. This move not only enhances the efficiency of its logistics network but also positions Škoda Auto as a key player in catering to the dynamic demands of emerging markets.