Skoda Auto, a Czech auto manufacturer, has stated that India would become an export base for the firm as it prepares to begin shipments of vehicle kits for assembly in Vietnam next year. The firm, which saw a 125 percent year-on-year increase in car sales to 53,721 units in 2022, has expressed optimism about reaching double-digit growth this year. In the previous calendar year, Volkswagen Group sales increased 85.48 percent year on year to 1,01,270 vehicles.
Skoda Auto Volkswagen India Pvt Ltd (SAVWPIL) represents the Group's Skoda Auto, Volkswagen, Audi, Porsche, and Lamborghini brands.
In an interview with PTI, Petr Solc, Brand Director at Skoda Auto India, stated that "India is an absolutely important market as part of our regional strategy of Skoda Auto, and India will serve as a major export centre for Skoda."
Volkswagen already exports cars from India to Mexico and South Africa, while Skoda Auto exports to the Middle East and North Africa. "Next year, we'll start shipping car kits for Vietnamese assembly," Solc remarked.
He emphasised that export is already and will continue to be a key component of Skoda and Volkswagen's strategy.
He stated that Skoda Auto India supplied more than 50,000 automobiles in the domestic market for the first time last year, adding that "we would like to grow with the market or even faster, and our ambition is to grow into double digits."
He stated that 2022 was significant for the firm because of the Slavia launch and added, "As a result, each new model launch had this type of one-time effect. Now that both models—the brand-new Slavia sedan and the Kushaq SUV—are available, we can take advantage of having both throughout the full year."
Solc stated that the 7-seater upgraded SUV Kodiaq would also play a role in the company's expansion goal, especially now that supply is significantly larger.
In answer to a query on Audi, which previously dominated the local market for premium luxury vehicles, Christian Cahn Von Seelen, Member of the Board for sales, marketing, and digital at SAVWPIL, said that volume growth in 2022 was "impressive" compared to the previous year, but that it was still hampered significantly by chip supply situations even in Europe.
In light of Audi's excellent expansion and our firm commitment to doing so, I can confidently predict that plenty of new products will be introduced on this side.
Solc stated that the company's EV entry into the Indian market is dependent on the segment's development in the nation. Skoda, a European automaker, published their EV plan late last month, which includes six electric vehicles phased in by 2026.
"In addition to Skoda, we as the manufacturer will be ready. And if we see excellent momentum, we may expect the automobile market or the EV to grow by up to 20% or 30% in the next 5-10 years. We don't know for sure," he remarked.
"So this could be part of it; we'd like to be in that range as well, but it all depends on the response." If we see more manufacturers leave, there is infrastructure constructed here, and customers are willing to buy electric cars, we will be ready," he added.
He stated that the firm is contemplating which models it should introduce to India as an EV in the future.
"And if we see market potential, we'll bring them as well." So I can't predict what the proportion will be. But, if the market grows to more than 20% of total electric cars, we would like to enter the EV area," Solc said.
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