Skoda Auto to expand in China with help from Shanghai Automotive

Another European automaker is now aiming for expanding its operations in the Chinese market. Skoda Auto has announced their plan for one of the fastest growing markets in the world and they are collaborating with Shanghai Automotive Industry Corporation (SAIC) for this. The company signed on an agreement with SAIC during Chinese Prime Minister Wen Jiabao’s visit.

Skoda Auto board chairperson Detlef Wittig said in a statement about their plans: “China is a strategic market for us and the signing of this declaration is another step in the successful expansion of the Skoda marquee on the Chinese market. This joint declaration will lay the foundation for deeper cooperation on future projects.”

The collaboration is aimed to make the position of Skoda Auto stronger in the Chinese market. They have already allowed Shanghai Volkswagen to manufacture its mid-range Skoda Octavia from 2007. This model is completely different from their models existing in other markets of the company like India where Skoda assembles the cars themselves and have their own dealerships.

Skoda is targeting an initial production in China of around 40,000 vehicles a year.

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