Skoda Auto has officially opened a new vehicle assembly plant in Vietnam, in partnership with local investor Thanh Cong Group. The new facility will focus on assembling two of Skoda’s popular models—the Kushaq SUV and the Slavia sedan.
This move is a key part of Skoda’s strategy to broaden its presence in international markets, particularly outside of Europe. By assembling the Kushaq from completely knocked down (CKD) kits imported from India, Skoda aims to maximize regional synergies. The Slavia sedan will also be assembled at the plant starting this summer, using CKD kits sourced from India.
Located in Quang Ninh province, the new plant is equipped with advanced manufacturing technologies. These include state-of-the-art welding, painting, and final assembly capabilities, ensuring high-quality production standards.
Skoda has been expanding its footprint in Vietnam since launching in the country in September 2023. It has opened 15 sales outlets and plans to grow its dealership network to 32 by 2025. Skoda is also responsible for managing Volkswagen Group’s operations in the ASEAN region, which is experiencing rapid growth.
Klaus Zellmer, CEO of Skoda Auto, highlighted the significance of the new assembly line, stating, “This facility is an important step in Skoda’s expansion in Vietnam and strengthens our position in the ASEAN market. By leveraging synergies with India, we are laying a solid foundation for success, both for Skoda and our local partner, Thanh Cong Group.”
Andreas Dick, Skoda Auto’s Board Member for Production and Logistics, emphasized the strategic location of the plant, saying, “The plant is situated near Hai Phong, one of Vietnam’s largest and most modern ports, which allows for efficient delivery of CKD kits from our logistics center in India. This improves our regional synergies.”
Nguyen Anh Tuan, Chairman of Thanh Cong Group, added, “This plant is a central part of our Thanh Cong Viet Hung automotive complex, which focuses on European automotive partnerships. It is designed to increase production capacity and support future developments in new energy and electric vehicles.”
The plant has already begun producing the Kushaq SUV, with the Slavia sedan scheduled to start production in the coming months. Both models are assembled from CKD kits shipped from Skoda’s Pune Logistics Centre in India. The plant’s location near a major port ensures fast and efficient logistics, while its modern manufacturing technologies, including 3D contactless measurement and anti-corrosion treatments, ensure high product quality. A 2-kilometer test track at the plant simulates local road conditions for rigorous testing.
Skoda has conducted extensive testing on the Kushaq, with over 330,000 km driven on various roads in Vietnam, as well as in high humidity conditions ranging from -10°C to +42°C. These efforts ensure that the locally assembled models meet the highest standards for quality and performance.
Designed with the needs of Vietnamese consumers in mind, the Kushaq and Slavia models feature left-hand drive configurations and advanced features, including adaptive cruise control, blind spot monitoring, and synthetic leather interiors. These locally assembled models complement the Karoq and Kodiaq SUVs, which Skoda imports into Vietnam.
Skoda’s approach in Vietnam is part of a broader strategy to target price-sensitive segments in the rapidly developing ASEAN automotive market. With a population of around 100 million and just 34 passenger cars per 1,000 people, Vietnam represents a significant growth opportunity. In addition to expanding in ASEAN, Skoda Auto is also focused on increasing its presence in the Middle East and leveraging synergies with its production facilities in India.
