Czech Automaker Begins Local Production of Kushaq SUV and Slavia Sedan in Strategic Market Move.
Quang Ninh, Vietnam (March 26, 2024) – Škoda Auto has officially launched its new assembly plant in Vietnam marking a major step in the Czech automaker’s ASEAN market expansion. The facility, developed in partnership with Thanh Cong Group will produce the Škoda Kushaq SUV and Slavia sedan using completely knocked-down (CKD) kits imported from India.
Key Highlights:
✅ First Škoda Assembly Plant in Vietnam – Strengthens ASEAN market presence.
✅ Local Production of Kushaq & Slavia – CKD kits sourced from Škoda’s Pune, India hub.
✅ Advanced Manufacturing Tech – Includes 3D measurement, 4-layer paint, anti-corrosion treatment.
✅ Dealer Network Expansion – From 15 to 32 showrooms by 2025.
✅ Strategic ASEAN Growth – Vietnam’s auto market has just 34 cars per 1,000 people, signaling huge potential.
Why Vietnam? Škoda’s Strategic Play in a Growing Market
1. Tapping into Vietnam’s Auto Boom
- Vietnam’s 100M population presents a long-term growth opportunity with low car penetration.
- Škoda joins other global automakers targeting price-sensitive ASEAN buyers.
- Local assembly helps avoid high import taxes, making cars more affordable.
2. Leveraging India-Vietnam Synergies
- CKD kits shipped from Pune, India – Cost-efficient logistics.
- Same platform (MQB-A0-IN) as India models – Streamlined production.
- Left-hand drive versions tailored for Vietnamese customers.
3. High-Tech Manufacturing Standards
🔹 Contactless 3D measurement for precision assembly.
🔹 Four-layer paint & anti-corrosion coating for durability.
🔹 2km test track replicating Vietnam’s road conditions.
🔹 330,000+ km of real-world testing (including extreme weather).
Leadership Insights: Building a Foothold in ASEAN
Klaus Zellmer, Škoda Auto CEO:
“This plant is a milestone in Škoda’s global growth. By combining Indian manufacturing expertise with Vietnam’s market potential, we’re creating a strong foundation for ASEAN success.”
Nguyen Anh Tuan, Thanh Cong Group Chairman:
“This facility is key to our European auto partnerships, enhancing Vietnam’s EV and new-energy vehicle capabilities for the future.”
What’s Next? Škoda’s Vietnam & ASEAN Roadmap
- Summer 2024: Slavia sedan production begins.
- 2025: Dealer network expands to 32 showrooms.
- Beyond Vietnam: Škoda eyeing broader ASEAN & Middle East growth, leveraging Indian production ties.
Final Takeaway: A Smart Move in a Competitive Market
Škoda’s Vietnam plant is a strategic masterstroke allowing the brand to:
🚗 Compete with Japanese & Korean rivals on price.
🌏 Strengthen ASEAN presence beyond Europe.
⚙️ Maintain high quality with localized testing & manufacturing.
With Karoq and Kodiaq SUVs already imported, Škoda now offers a fuller lineup for Vietnamese buyers—positioning itself as a key player in the region’s auto boom.
