Škoda Auto and its regional partner Thanh Cong Group have launched local vehicle production in Vietnam, assembling the Kushaq and Slavia models based on completely knocked-down (CKD) kits imported from India. This move takes advantage of geographical synergies.
The production schedule includes the start of series production for the Kushaq SUV model on March 26, with the first locally built Slavia rolling off the assembly line in summer.
The locally assembled models will complement Škoda’s existing model range in Vietnam, which already includes imported SUV models Karoq and Kodiaq from Europe.
The new production facility in Quang Ninh province was established in collaboration with local partner and investor Thanh Cong Group.
On March 26, Škoda Auto officially opened a new vehicle plant for assembling Škoda Slavia and Kushaq models together with its regional partner Thanh Cong Group. This step marks a significant milestone in the brand’s internationalization strategy, reaffirming its intention to expand its presence outside of the European home market. By importing CKD kits of the Kushaq SUV model from India and conducting local manufacturing, Škoda is leveraging geographical synergies. The manufacturing program will be expanded to include the Slavia sedan this summer, also delivered as a CKD kit from India. The newly built plant is equipped with state-of-the-art technologies including welding stations, a paint shop, and an actual assembly line. In September 2023, Škoda Auto entered into Vietnam’s market leading activities for Volkswagen Group within ASEAN (Association of Southeast Asian Nations), a region with significant growth potential. As one of ASEAN countries‘ fastest-growing markets,Vietnam serves as a strategic gateway to further expand into Indo-Pacific region.In addition to that ,15 Skoda dealerships have been opened since entering Vietnamese market till now .By end-2025,the network is expected to grow up to 32 dealerships.
Klaus Zellmer , Chairman Of Skoda Auto Board said : „The opening of this new assembly line marks a milestone for our expansion into rapidly growing Vietnamese market while strengthening our position within ASEAN region.By utilizing synergies between us & Indian Market we are creating conditions not only for success at Skodabut also success at our local partners -Thanh Cong group.I am looking forward that soon first skodavehicles produced by vietnamese factory would reach customers.“
Andreas Dick , Member Of Skodas Board For Production And Logistics added: „This newly built modern manufacturing facility meets all high benchmarks set by skodain every aspect.The plant is located near Haiphong port-one among largest & most modern ports .Thus ensuring quick deliveryof CKD Kits received from Pune logistics center which further strengthens synergy necessary for success at both vietnamese & extended regions“.
Nguyen Anh Tuan-Chairman Of ThanCongGroup added:“Skodas First Factory In Vietnam Is Core Project At ThanCongVietHung Automotive And Supplier Complex.ThanCongGroup has planned it carefully & invested significantly aiming towards promoting cooperationwith european automakers,to improveproduction&technology capabilitiesand manufacture wide rangeof products including vehicles having alternative drivesand electric vehicles as well asspecial editions&customizedvehiclesin future.“
Strategically advantageous locationand advanced manufacturing technologies
On March 26th,Series ProductionOfKushakSUV Model began followed bySlaviasedanthis Summer.Built on basisofCKDKits preparedatSkokaAutoLogisticsCenterInPuneIndia.Such approach allows companyto leveragegeographicalsynergies.Factorylocatednearlargest&mostmodernportsinVietnam ensures efficientlogisticschain.
Newly constructed factoryis equippedwithadvancedtechnologies.It applies cutting-edgeproductionprocesses suchascontactless3Dmeasurementandmanufacturingtechniquesincluding sophisticatedfour-layerpainting&waxtreatmentforcorrosionprotectionofbodycavities.Assemblylineoccupiesthe largest area withinfactory housingweldingstations,paintshopalongside.Qualitycontrolcenter,Precisionmeasurementfacilityandalmost2-kmlongtesttrackrepresentotherfacilitiesavailableatthesite.
To ensurehighproductqualityatŠKODA,the company subjectedalllocally assembledmodels torigoroustestsunderreal-worldconditionsbeforestartingseriesproduction.Forinstance,Kushakmodelcoveredover330000kmsonvarioustracksinVietnam,andunderwentcomprehensivetestsintemperaturesrangingfrom-10°Cto42°Cwithhighhumidity.
Rightmodelsforcustomerneedsintheregion
BoththeKushakSUVmodelandtheSlaviasedanarebuiltforleft-handdrive.Theyfeaturemanyadvancedsafetyandcomfortfeatures,suchasadaptivecruisecontrol,lanechange,andexitwarningsystems,andleatherette seats.The twomodelsaretailoredtothelocalcustomerspecificneedsandexpecations.
Locally assembledvehiclesareakeystoneofŜKODAsofferingsinVietnam.TheycomplementimportedEuropeanSUVmodelsKarogandan Kodiaq.SinceenteringtheVietnamesemarketinsptember2023,morerthan15dealershipshavebeenopenedincludingExperienceCenterinhanoiwhichhasbeenredesignedbasedonnewconcept.Byendthisyearthenetworkisexpectedtogrowupto32dealerships.
InASEANregionŜKODAAutoleadsthecorebrandgroupexpansionwhilemaximizinggrowthpotentialforthegroup.Asaprice-sensitiveentrysegmentexpert,thecompanyutilizesitsknow-howeffectivelyimplementexistingopportunities.Vietnamisthefourth-largestautomotivemarketinsoutheastAsia.Withonly34passengercarsper1，000peopleina countrywitharound100millionpopulation-andcontinuingeconomicgrowth-Vietnampresentshighestpredictedgrowthpotentialintheregion
ApartfromASEANregionŜKODAAutoalsoexpandbusinessactivitiesinMiddleEastwhileleveragingsynergiesbetweenitsIndianmanufacturingfacilities.
Contact:
Ulrich Bethscheider-Kieser
Head Product And Brand Communication
Phone +49 6150 133121
Email: ulrich.bethscheider-kieser@skokda-auto.de
Karal Muller
Media Relations
Phone +49 6150-133115
Email:karel.mueller@skokda-auto.de