Czech-based Volkswagen (OTCPK:VWAGY) brand Škoda is eyeing entry into Vietnam and a full exit from Russia, according to an annual presentation provided on Thursday.
CEO Klaus Zellmer explained that the automaker is seeking to grow in southeast Asia, diversifying its sales base from its core Central European sales in Germany, Czechia, and Poland.
“Despite the various challenges our industry is facing, we sharpened our strategic focus by unveiling a new design language and corporate identity, launching the production of our MEB battery systems, accelerating our e-mobility offensive and advancing Škoda Auto’s internationalization,” he said. “We are going to use our entry into the Vietnamese market to drive the Volkswagen Group’s growth across the ASEAN region, for which we recently assumed Brand Group Volume strategic leadership.”
A factory is slated for production in Vietnam by 2024. Zellmer added that the brand will look to grow in the Middle East region as well. In 2022, India and China grew into the automaker’s third and sixth largest markets for deliveries.
Elsewhere, Zellmer said that the company is close to selling its Russian assets after shuttering production in the wake of Russia’s invasion of Ukraine.
Source: Seeking Alpha