Škoda Auto, in collaboration with its regional partner and investor Thanh Cong Group, has officially opened a new production facility in Vietnam on March 26. The plant will assemble the ŠkodaKushaq SUV and Slavia sedan models.
This move is a key part of Škoda’s strategy to expand its international footprint, particularly outside of its core European market. By importing completely knocked-down (CKD) kits of the Kushaq from India for local assembly, Škoda is leveraging regional synergies. The production line will also include the Slavia sedan, which will be assembled from CKD kits imported from India starting this summer. Located in QuangNinh province, the plant is equipped with advanced manufacturing technology, including welding, painting, and final assembly capabilities.
Since its launch in Vietnam in September 2023, Škoda has steadily built its presence, opening 15 sales outlets. The company plans to expand this network to 32 dealerships by 2025. Škoda Auto oversees the Volkswagen Group’s operations in the ASEAN region, which is seeing substantial growth.
Klaus Zellmer, CEO of Škoda Auto, commented, “This new assembly line represents a significant step forward in Škoda’s expansion in Vietnam and strengthens our position in the ASEAN market. By capitalizing on synergies with India, we are creating a solid foundation for success, both for Škoda and our local partner Thanh Cong Group.”
Andreas Dick, Škoda Auto Board Member for Production and Logistics, added, “Our new manufacturing facilities reflect Škoda’s high standards. Situated near Haiphong, one of Vietnam’s largest and most modern ports, the location facilitates efficient delivery of CKD kits from our logistics hub in India, further enhancing our synergies in the region.”
Nguyen Anh Tuan, Chairman of Thanh Cong Group, shared, “This plant is a central project within our Thanh Cong Viet Hung Automotive Complex, which is focused on European automotive collaborations. It aims to improve production capabilities, technology, and future developments in new energy and electric vehicles.”
The first phase of production has begun with the Kushaq SUV, and the Slavia sedan will follow this summer. Both models are assembled from CKD kits shipped from Škoda’s Pune logistics center in India. The plant’s strategic location near a major port allows for quick and efficient logistics. The facility itself is equipped with modern manufacturing technologies such as contactless 3D measurement, four-layer paint application, and anti-corrosion treatments. It also features a quality control center, precision measurement facilities, and a nearly 2-kilometer-long test track simulating local road conditions.
Škoda Auto ensures high product quality by conducting rigorous testing on locally assembled models. For instance, the Kushaq has undergone over 330,000 kilometers of testing on various Vietnamese roads, along with climate tests ranging from -10°C to +42°C with high humidity.
The Kushaq and Slavia models are designed with the specific needs of Vietnamese customers in mind, offering left-hand drive and advanced features like adaptive cruise control, blind-spot monitoring, and synthetic leather upholstery. These locally assembled models complement Škoda’s imported Karoq and Kodiaq SUVs in Vietnam.
Škoda’s strategy in Vietnam aligns with its broader goals in the ASEAN region. The company is focusing on price-sensitive segments, which presents strong growth opportunities in a market with a rapidly expanding automotive sector. With just 34 passenger vehicles per 1,000 inhabitants in a country of around 100 million people, Vietnam offers significant potential for the automotive industry. Beyond the ASEAN region, Škoda Auto is also focusing on expanding its presence in the Middle East, benefiting from synergies with its production facilities in India.
