Škoda Auto, in partnership with Thanh Cong Group, has officially opened a new production facility in Vietnam to assemble the Škoda Slavia sedan and Kushaq SUV. This move marks an important step in Škoda’s strategy to expand beyond its European base and strengthen its presence in international markets.
The new plant, located in Quang Ninh province, will initially assemble the Kushaq SUV from completely knocked-down (CKD) kits imported from India. Production will soon expand to include the Slavia sedan, also assembled from CKD kits sourced from India. By assembling these vehicles locally, Škoda is making the most of the geographic and logistical advantages in the region.
The facility is equipped with advanced technology, including welding and paint shops, along with a final assembly line. This new plant is part of Škoda Auto’s broader expansion in Southeast Asia, where it launched operations in Vietnam in September 2023. Vietnam, one of the fastest-growing markets in the region, is a strategic hub for Škoda’s activities in the Association of Southeast Asian Nations (ASEAN).
Since entering Vietnam, Škoda has opened 15 sales outlets, with plans to increase this number to 32 by 2025. The Vietnamese market, with its growing economy and automotive demand, plays a vital role in Škoda’s strategy for growth in the Indo-Pacific region.
Škoda Auto’s CEO, Klaus Zellmer, expressed enthusiasm about the new assembly line, stating that it strengthens Škoda’s position in Vietnam and the ASEAN region. He emphasized the benefits of synergies with the Indian market, which will help drive success for both Škoda and local partner Thanh Cong Group.
Andreas Dick, a board member responsible for production and logistics, highlighted the location’s advantages. The plant’s proximity to Haiphong, one of Vietnam’s largest and most modern ports, allows for efficient delivery of CKD kits from Pune, India, supporting Škoda’s successful operations in Vietnam.
Thanh Cong Group’s chairman, Nguyen Anh Tuan, noted that the new Škoda plant is a key project within their broader automotive complex. This initiative aims to foster European automotive collaboration, improve production technology, and explore new opportunities, including the future manufacturing of electric vehicles.
Production of the Kushaq SUV has already begun, with the Slavia sedan set to follow in the summer. Both models will be assembled using CKD kits, taking advantage of the region’s logistical benefits. The plant features cutting-edge manufacturing processes, including advanced 3D measurements, a sophisticated four-layer paint application, and anti-corrosion treatments to ensure high-quality production.
To guarantee product quality, Škoda tests each locally assembled vehicle under real-world conditions before full production. For example, the Kushaq SUV underwent over 330,000 kilometers of testing on various Vietnamese roads, as well as climate tests in extreme temperatures ranging from -10°C to +42°C with high humidity.
Both the Kushaq SUV and Slavia sedan are tailored to meet local customer expectations, offering features such as adaptive cruise control, blind spot monitoring, and synthetic leather upholstery. These vehicles complement Škoda’s existing models, like the Karoq and Kodiaq SUVs, which are imported from Europe.
Škoda Auto’s expansion in Vietnam reflects the company’s broader ambitions in Southeast Asia. Vietnam is currently the fourth-largest automotive market in the region, with significant growth potential. With a population of approximately 100 million people and a growing economy, the country is expected to see increasing demand for vehicles.
Škoda is also expanding beyond ASEAN, targeting markets in the Middle East and leveraging synergies with its Indian production facilities.
