Škoda Auto and regional partner and investor,
Thanh Cong Group, have officially opened a new production plant in Vietnam for the assembly of Škoda 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, Škoda 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. Škoda 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 Škoda sales outlets have been opened and the network is planned to expand to 32 dealerships in 2025.
Škoda Auto’s CEO Klaus Zellmer said: “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. By leveraging synergies with our key Indian market, we are setting the stage for success not only for Škoda but also for our local partner, Thanh Cong Group. I look forward to putting the first Škoda vehicles from the Vietnamese plant in front of customers very soon.”
Andreas Dick, Škoda Auto board member for production and logistics, added: “The new manufacturing facilities fully reflect Škoda’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 Škoda’s success in Vietnam and the wider region.”
Nguyen Anh Tuan, Thanh Cong Group’s chairman, added: “The first Škoda 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, specialised and custom designs vehicles in the future.”
Series production of the Kushaq SUV hsa started, with the Slavia sedan set to follow this summer. Both models are assembled from CKD kits prepared at Škoda Auto’s logistics centre in Pune, India, capitalising on geographical synergies. The plant’s location near one of Vietnam’s largest and most modern ports ensures an efficient supply chain.
The newly built facility is equipped with cutting-edge technology for both manufacturing processes – such as contactless 3-D measurement – and production techniques, including a sophisticated four-layer paint application and an anti-corrosion wax treatment for body cavities. The assembly line is the largest section of the plant, which also houses a welding shop and a paint shop. The site features a quality control centre, a precision measurement facility, and a nearly 2km-long test track designed to replicate a variety of local road conditions.
High product qualityTo guarantee high product quality, Škoda rigorously tests all locally assembled models under real-world conditions ahead of series production. The Kushaq, for example, has covered more than 330,000 kilometres on diverse Vietnamese roads and undergone extensive climate testing, including trials in temperatures ranging from -10 °C to +42 °C with high humidity.
The Kushaq SUV and Slavia sedan feature left-hand drive and come equipped with advanced safety and comfort features, including adaptive cruise control, blind spot monitoring, and synthetic leather upholstery. Both models are tailored to meet the specific needs and expectations of local customers.
The locally assembled models are a cornerstone of Škoda’s portfolio in Vietnam, complementing the Karoq and Kodiaq SUVs imported from Europe. Since Škoda’s entry into the Vietnamese market in September 2023, more than 15 sales outlets have been opened, including a new showroom concept, the Experience Centre in Hanoi. The network is planned to expand to 32 dealerships by the end of this year.
Škoda Auto is leading the Brand Group Core in its expansion across the ASEAN region, maximising growth potential for the Volkswagen Group. The company draws on its expertise in price-sensitive entry-level segments and effectively leverages existing opportunities. Vietnam is currently the fourth-largest automotive market in Southeast Asia. With just 34 passenger vehicles per 1,000 inhabitants in a country of approximately 100 million people — and with continued national economic growth — Vietnam has the highest projected growth potential in the region.
Beyond ASEAN, Škoda Auto is also expanding its business activities in the Middle East, capitalising on synergies with its production facilities in India.