Škoda Auto is putting the Octavia model into complete production in the Russian Federation despite the current crisis, supporting the positive trend for the Škoda brand in Russia. Complete production is being started 11 months before the originally planned date.
Škoda’s market share in Russia has risen to 2.5%. Škoda Auto’s sales in Russia are falling more slowly than the total domestic automobile market. In the first three quarters, it fell by 51% in comparison with last year. In the first nine months, Škoda Auto sold a total of 25,345 cars on the Russian market.
Škoda Auto has been assembling cars since 2007 at a joint venture plant with VW in Kaluga, Russia. The Škoda Octavia Tour (liftback, combi in August 2008) and Octavia (liftback, combi in August 2008) ranges have been coming off lines in Kaluga since October 2007. The assembly of the Škoda Fabia started in January 2008 (hatchback, combi in January 2009). This year they were followed by the assembly of the Škoda Superb in April and Škoda Roomster in May. Most of the models are offered solely with petrol engines.
From this October the Kaluga plant has become a full production operation and is now equipped not only with an assembly line, but also welding and painting shops. Assembly is being replaced by the complete production of cars. The first Škoda car to be produced in the Russian Federation is the Octavia. It will gradually be followed by all the other models, including the Superb and the Yeti.
The VW and Škoda Auto joint venture plant will reach a production capacity of 150,000 cars in 2010. The current number of employees, 1,800, will be brought up to 3,000 over the next year.
‘The Russian automobile market was strongly affected by the current economic crisis. Despite this, it remains a very interesting market for us with huge volume potential. Together with India and China, we regard Russia as a dynamic market with a positive outlook for the future. Some experts are indicating that we have now at least seen the bottom of the crisis. We are making use of the total production capacity of the plant in Kaluga, and therefore the enabled nationalisation of parts for the further building and strengthening of the brand’s position,’ said Reinhard Jung, chairman of the board of directors of Škoda Auto.
‘The Škoda brand’s sales target for this year is 35,000 cars. In the current conditions in the car business, our most important aim is to further strengthen the brand’s position by increasing market share. In the case of the Škoda brand, it is constantly rising, and has reached 2.5% this year, up from last year’s 1.9%. At the current time, the most popular Škoda models in Russia are the Fabia, Octavia Tour and Octavia. Despite the current problems, the Superb model is also doing well, and has been positively received by customers and the media,’ added Petr Janeba, director of Škoda Auto Russia.
- Skoda Auto
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