Czech carmaker Skoda, a subsidiary of Volkswagen, has started the production of Yeti sports utility vehicle (SUV) at GAZ's facility in Nizhny Novgorod, Russia.
Skoda said it is the first vehicle to be produced at the facility under partnership between Volkswagen Russia and GAZ Group and second facility to produce ŠKODA automobiles in the country.
The facility will have completely knocked down (CKD) production that involves total production of a vehicle including construction of body, paint shop and assembly.
Skoda however had started semi knocked down (SKD) production at the facility since late 2011 to prepare itself for CKD production for the Russian market.
Skoda CEO Winfried Vahland said: "Russia is our third-strongest sales market worldwide and our number two in Europe as it is, and we intend to grow further in years to come, which is why we are resolutely extending our model offensive in this country and expanding local capacity further."
In addition to Yeti, the Nizhny Novgorod facility will also build new Skoda Octavia with production expected to start in mid- 2013.
The Czech carmaker also has another Russian production base in Kaluga that builds Skoda Octavia and the Fabia and is scheduled to begin production of Rapid model from early 2014.
As part of Skoda's 2018 growth strategy, the carmaker is aiming to increase its global sales to at about 1.5 million units per year and plans to unveil a new or upgraded vehicle model every six months on average in the coming years.
