The Hindu : Skoda starts CKD assembly operations

Online edition of India's National Newspaper
Wednesday, Apr 30, 2003

Business

Business

Skoda starts CKD assembly operations

By Our Staff Correspondent

MUMBAI APRIL 29. Skoda Auto India, the Indian subsidiary of Skoda Auto, has announced the launching of its CKD (completely knocked down) assembly operations in India.

Skoda has already an assembly facility in Aurangabad and has a capacity of over 10,000 cars per annum. At present, it assembles 35-40 cars a day on a double shift basis in the SKD format.

Karl-Gunter Busching, Chairman, Skoda Auto India, said the CKD operations were the third phase of Skoda's operations in India after the first two steps of SKD (semi knocked down) operations.

"We will start from the existing facilities with smaller production volumes,'' said Mr. Busching, adding, "The customs regulations have changed from 30 per cent to 60 per cent duties and this makes it no more possible and therefore the shift from SKD to CKD.''

As a result of this shift, there will be a slowdown in the operations in the Aurangabad facilities for four to five months. "After this lag, from September-October onwards, we will be able to sell higher volumes. Last year (2002) we sold 4,500 units and our plan was to sell 8,500 units this year.

However, due to this development, we will sell 4,500 units in the current year too. However, next year, (2004) we are looking to sell more than 10,000 units,'' said Mr. Busching.

Printer friendly page
Send this article to Friends by E-Mail

Business