Czech automobile manufacturer Skoda, in co-operation with Volkswagen Group Russia and GAZ Group, has started the production of the new Octavia vehicle at the GAZ's Nizhny Novgorod plant in Russia.
The plant, which already produces Skoda Yeti, will undertake the complete vehicle manufacturing process including body production, painting and assembly of the new Octavia.
With the move, the company expects to strengthen its position in the region as well as support the growing demand for the vehicle.
Skoda CEO Winfried Vahland said the company aims to extend the success of the vehicle in Russia with the launch of the third Octavia generation.
"Russia has become our third-most important sales market worldwide and our number two in Europe," Vahland added.
Skoda along with its partners has invested about EUR300m to make the plant ready for the production of the two vehicles and has also set up a new training centre for local production staff in early 2012.
According to the company, the Octavia accounted for 56% of its sales in Russia during the first five months of 2013 with sale of about 18,800 units.
