Skoda India might partner parent company Volkswagen

Skoda India might partner parent company Volkswagen in India

Czech automaker Skoda’s Indian division is partnering with its German parent Volkswagen to invest in a local vendor base.

This vendor base would be providing raw material and components for the cars to be manufactured for their Indian operations.

Skoda is already assembling cars from completely knocked down kits imported from the Czech Republic at their plant located in Aurangabad.

These new plans mean that the company is now considering changing its India strategy from an assembly operation to full-scale manufacturing.

Karsten Bogun, MD, Skoda India spoke on these new developments: “There will be synergies between the three companies, Skoda, Volkswagen and Audi. And we are quite likely to work together on developing a strong vendor base here. We are quite satisfied with the quality of suppliers here and are looking to increase our local component sourcing.”

Parent company VW has already announced their plans to invest Rs 2,400 crores to set up a 1,10,000 unit facility in Chakan.