Skoda Auto and Volkswagen Open a Joint Manufacturing Plant in Pune, India

PUNE, INDIA – March 31, 2009: Škoda Auto is extending the scope of its Indian-based production. Together with Volkswagen, the company has today officially opened a new joint manufacturing plant in Pune, India. Starting one year earlier than planned, the local production of the Škoda Fabia will now start in May 2009.

Škoda Auto has been manufacturing vehicles in India since 2001 - its assembly plant is situated in Aurangabad, about 160 kilometres away from the Pune car manufacturing centre. The Company's distribution network in India is made up of 60 dealers.

Indian customers see the Škoda brand as a manufacturer of high-quality, yet affordable compact vehicles of the lower medium and medium classes. Expressed by the names of the current models, the portfolio includes the Fabia, the Octavia (Octavia Tour), the Laura (Octavia) and the Superb.

Škoda Auto has invested EUR 90 million in India so far, of which 25 million has been invested in the construction of the Pune manufacturing plant. “The Indian automotive industry is very important for us in terms of long-term prospects and we expect our annual sales volume to multiply over the next few years. Now we are going to invest in localisation of parts and components, i.e. in suppliers” said Škoda Auto BOD Chairman Reinhard Jung. The site is one of the Volkswagen Group’s most modern manufacturing plants and the company's only plant in India to cover the entire production chain, including pressing, welding and painting operations, as well as an assembly shop. Furthermore, the plant is supplied by a large number of local contractors. The site will offer jobs to approximately 2,500 people by the end of 2010.