Skoda Expands Production With a New Plant in Russia image

Skoda Auto AS recently declared that it has opened its second production facility in Russia at a plant of its partner GAZ Group in Nizhny Novgorod, to meet the increase in demand in the country’s vehicle market.

Skoda vehicles are currently being produced at GAZ in Nizhny Novgorod and at Volkswagen’s Russian plant in Kaluga. Due to the foreseen company’s great growth potential in Russia, additional production capacity is needed.

“In the Russian Federation we see great growth potential for Skoda and therefore…we need additional production facilities,” Skoda Auto Chairman Winfried Vahland said in a statement.

Skoda already produces the best-selling compact Octavia, small hatchback Fabia and small sports-utility vehicle Yeti at its own Kaluga plant, south of Moscow. From the new facility, the company expects a production of 110,000 units annually, and for the two facilities together 350,000 cars annually, from under 100,000 at present.

The company plans to boost its global output to 1.5 million cars by 2018, including China and India, and to sell about 60% of its output outside Europe. In 2011 the company sold around 879,200 cars worldwide, up 15% compared to 2010.