Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) is embarking on an exciting journey to export its vehicles to Vietnam, setting a target for the year 2024. This strategic move is part of a broader export acceleration plan within the ASEAN region. With the inauguration of the parts expedition centre (PEC) at the Volkswagen group’s headquarters in Chakan, Pune, SAVWIPL is all set to usher in a new era of automobile exports.
Driving Exports from India to Vietnam
The heart of this operation is the newly established PEC, spanning a generous 16,800 square feet, and equipped with an initial capacity of handling 27,000 car sets annually for Vietnam. The centre is poised for further expansion, with plans to scale up to 40,000 car sets per year.
One of the key objectives of this export endeavor is to create a seamless bridge between India and Vietnam, enabling a transfer of ‘made-in-India’ kits for final vehicle production in Vietnam. Andreas Dick, Skoda Auto Board Member for Production and Logistics, emphasizes the potential for significant synergies between these two pivotal markets.
Vietnam is just the beginning. The PEC is designed with the future in mind, aiming to serve multiple emerging markets in the ASEAN region. It signifies a commitment to regional growth and collaboration.
The Export Procedure
SAVWIPL’s export process entails shipping vehicle parts from India to Vietnam through the Mumbai port. The final steps, including assembly and customer delivery preparation, will be conducted at Skoda Auto’s affiliated facility within Qung Ninh province, Vietnam.
To accommodate these ambitious export plans, a dedicated production line is under construction in Vietnam, scheduled for commissioning during the first half of 2024. The SUV Kushaq and the sedan Slavia are the chosen models to be exported to Vietnam, utilizing the CKD (completely knock-down) assembly approach.
Pioneering an Export Revolution
Piyush Arora, Managing Director & CEO of SAVWIPL, regards the establishment of the Parts Expedition Centre as a strategic leap in their export capabilities. This state-of-the-art facility seamlessly blends modern infrastructure with sustainability, aligning perfectly with the company’s mission to serve emerging markets more effectively.
In conclusion, SAVWIPL’s ambitious move to export to Vietnam is not merely a milestone but a reflection of its commitment to expanding its footprint in the dynamic ASEAN region. The year 2024 will mark the beginning of a new chapter, where ‘made-in-India’ vehicles will grace the roads of Vietnam, strengthening global ties and enhancing automotive experiences.
