In a strategic move to expand its global footprint, Skoda Auto, in partnership with regional investor Thanh Cong Group, has inaugurated its new manufacturing facility in Quang Ninh province, Vietnam. The plant will locally assemble the Skoda Kushaq SUV and Slavia sedan, both built from CKD (completely knocked down) kits sourced from Skoda’s logistics hub in Pune, India.
Series production of the Kushaq officially began on March 26, 2025while the Slavia is set to roll off the assembly line later this summer. These two models will join Skoda’s existing Vietnamese portfolio, which includes the Karoq and Kodiaq SUVs imported from Europe.
The new facility marks a major milestone in Skoda’s internationalisation strategy, specifically targeting fast-growing Southeast Asian markets. It is equipped with state-of-the-art technology, including a welding shop, paint shop, and final assembly line. The site also features a 2-kilometre test track, a precision measurement centre, and a quality control hub to ensure global production standards are met.
Klaus Zellmer, CEO OF SKODA CARsaid, “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.”
Geographic synergy and localisation strategy
Located near Haiphong Port, one of Vietnam’s largest and most modern ports, the plant benefits from efficient shipping logistics for importing CKD kits from India. The facility uses advanced paint processes, anti-corrosion treatments, and contactless 3D measurement technology.
Ahead of series production, the Kushaq underwent over 330,000 kilometres of testing on Vietnamese roads, including extreme temperature trials ranging from -10°C to +42°C in high humidity conditions. Both the Kushaq and Slavia are left-hand-drive models tailored for Vietnamese customers, equipped with features such as adaptive cruise control, blind spot monitoring, and synthetic leather upholstery.
Andreas Dick, Board Member for Production and Logistics, Skoda Autoadded, “The new state-of-the-art 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.”
A strategic step in ASEAN growth
Skoda’s entry into Vietnam in September 2023 marked the beginning of its wider ASEAN strategy. The brand has already opened 15 sales outlets across the country and aims to increase this to 32 dealerships by the end of 2025. It also recently introduced its Experience Centre showroom format in Hanoi.
Nguyen Anh Tuan, Chairman of Thanh Cong Groupsaid, “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.”
Vietnam is seen as a high-growth market in Southeast Asia, with just 34 passenger vehicles per 1,000 people in a population of 100 million. With continued economic growth and rising consumer aspirations, Skoda’s localisation strategy aims to tap into this vast potential.
Beyond ASEAN, Skoda also plans to expand its operations in the Middle East, again capitalising on India’s CKD export capabilities, reinforcing the importance of its Indian operations in its global expansion strategy.
