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Škoda Auto Volkswagen India Inaugurates Parts Expedition Centre In Pune, To Facilitate Parts Exports To Asean Region

23 Oct 2023  

Škoda Auto Volkswagen India Inaugurates Parts Expedition Centre In Pune, To Facilitate Parts Exports To Asean Region

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  • Parts Expedition Centre (PEC) will boost exports from VW Group India, beginning with Vietnam in 2024
  • The new facility is spread over an area of 16,800 square metres within the Pune Plant
  • The new PEC reaffirms the role of India in Škoda's internationalisation strategy 
  • VW Group India will collaborate with Vietnam's TC Group for final assembly and delivery
  • Kushaq and Slavia models to be exported from Pune to Vietnam for assembly on a CKD basis

Škoda Auto Volkswagen India Private Limited (SAVWIPL) has inaugurated its Parts Expedition Centre (PEC) at the Volkswagen Group’s Headquarters in Chakan, Pune. This 16,800-square metre facility is set to accelerate the company's export operations in the ASEAN region, starting with Vietnam from 2024. The made-in-India kits will be shipped from India to Vietnam for final production.

Andreas Dick, Škoda Auto Board Member for Production and Logistics, said: “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. While Vietnam will be the first phase, the PEC is geared to serve several emerging markets in the ASEAN region in the future.”

Piyush Arora, Managing Director & CEO of Škoda Auto Volkswagen India Private Limited, commented, "This year marked the 600,000th car export for Škoda Auto Volkswagen India Private Limited from India. We have been serving key international markets from India, which is a testament to our engineering capabilities. 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. At the same time, we will carry on with our vision of making sustainable, quality mobility accessible worldwide."

Synergies through geographical proximity: exporting Indian CKD (Completely Knocked-Down) models to Vietnam

In 2021, Škoda Auto unveiled the Kushaq model for the Indian automotive market, with production taking place in Pune. This mid-size SUV, designed and based on the MQB-A0-IN version of the modular transverse matrix, was developed to cater to the Indian preferences and needs. Following suit, Škoda introduced the Slavia sedan one year later, which also stems from Indian development roots. Both the models will be exported to Vietnam, following the CKD assembly approach, exemplifying Škoda's commitment to delivering quality automobiles to a global audience.

With an initial capacity of 27,000 car sets annually for Vietnam, the new 16,800 square meter logistic centre has the infrastructure to scale up to 40,000 car sets annually. The 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.

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