Skoda Auto and regional partner and investor, the Thanh Cong Group, officially opened a new production plant in Vietnam recently for the assembly of Skoda Slavia and Kushaq cars.

This marks a significant milestone in the brand’s internationalisation strategy, reinforcing its ambition to strengthen its presence beyond its European home market. By importing completely knocked down (CKD) kits of the Kushaq SUV from India and assembling them locally, Skoda is capitalising on geographical synergies.

The production programme will expand in the summer to include the Slavia sedan, which will also be assembled from CKD kits sourced from India. Located in Quang Ninh province, the facility is equipped with state-of-the-art technology, including a welding shop, a paint shop, and a final assembly line.

Skoda Auto launched operations in Vietnam in September 2023 and oversees the Volkswagen Group’s activities in the Association of Southeast Asian Nations (ASEAN), a region with strong growth potential. Vietnam, one of the fastest- developing markets in ASEAN, serves as a strategic gateway to the wider Indo-Pacific region.

Since entering the Vietnamese market, 15 Skoda sales outlets have been opened, and the network is planned to expand to 32 dealerships in 2025.

Klaus Zellmer, CEO of Skoda Auto, stated: “Opening this new assembly line marks a milestone in our expansion into the rapidly growing Vietnamese market and strengthens our position in the ASEAN region.

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By leveraging synergies with our key Indian market, we are setting the stage for success not only for Skoda but also for our local partner, Thanh Cong Group. I look forward to putting the first Skoda vehicles from the Vietnamese plant in front of customers very soon.”

Andreas Dick, Skoda Auto Board Member for Production and Logistics, added: “The new state-of- the-art manufacturing facilities fully reflect Skoda’s high manufacturing benchmarks. The plant is located in Quang Ninh province, close to the port of Haiphong – one of Vietnam’s largest and most modern ports.

This ensures the swift delivery of CKD kits from our logistics hub in Pune, India, while also strengthening the synergies that are vital to Skoda’s success in Vietnam and the wider region.”

Nguyen Anh Tuan, Chairman of the Board of Thanh Cong Group, stated: “The first Skoda Auto plant in Vietnam is the core project in the Thanh Cong Viet Hung Automotive and auxiliary Complex which has been well-planed and invested by Thanh Cong Group and aims to foster European automotive collaboration, enhance production and technology, and manufacture a diverse range of products, including new energy vehicles and electric vehicles, specialized and custom designs vehicles in the future.”