VW pushes Skoda brand to the new markets

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The German car manufacturer Volkswagen is aiming for growth in emerging markets with its Skoda brand. This concerns markets in Asia, where Volkswagen is still lagging behind Asian rivals.

Skoda is the most profitable mass brand of Volkswagen. The brand is currently releasing funds for investments in India or Southeast Asia. In addition, money is going to the further development of electric driving, said Skoda CEO Thomas Schäfer in an interview.

Skoda has revised its operations in India following the cancellation of cooperation plans with Tata Motors. In addition, the automaker will soon decide whether or not to build a factory in Southeast Asia. According to Schäfer, there is sufficient potential in emerging markets. Among other things, the company conducts talks in Vietnam.

A decision on a plant in South East Asia could be taken this year after discussions were delayed due to travel restrictions due to the coronavirus pandemic. It is still the case that Japanese and South Korean manufacturers are dominant in the region.

Skoda’s are on average cheaper Volkswagen, but the brands share important technology. Furthermore, Volkswagen brands Audi and Porsche have to compete with luxury brands such as Mercedes-Benz or Tesla. Originally from the Czech Republic, Skoda has to compete with French brands such as Renault and Peugeot and South Korean Hyundai.

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