Škoda Auto, in partnership with the Thanh Cong Group, inaugurated a state-of-the-art production plant that’s poised to shape not only Vietnam’s burgeoning automotive market but Škoda’s global strategy. With the debut of its local assembly operations, the plant has already begun assembling the Kushaq SUV, while the Slavia sedan will follow suit by summer 2025, marking yet another milestone in the Czech automaker’s aggressive international expansion.
This meticulously planned foray into Vietnam dovetails with Škoda’s overarching goal of cornering the automotive market in the ASEAN region. As Klaus Zellmer, CEO of Škoda Auto, puts it: “Opening this new assembly line marks a milestone in our expansion into the rapidly growing Vietnamese market” . The venture leans on the logistical boon of importing completely knocked-down (CKD) kits from Škoda’s hub in Pune, India, ensuring efficient geographical synergies and optimised costs—a strategy as precise as its 3D measurement technology.
The Vietnam plant is more than just an assemblage of cars; it’s an assemblage of Škoda’s ideological ethos. From environmentally conscious four-layer paint applications to anti-corrosion wax treatments for body cavities, Škoda’s attention to detail would make even the most scrutinizing enthusiast nod in approval. The nearly two-kilometre-long test track? It’s designed to mimic every pothole and nuance of Vietnamese roads, because quality control is not just a feature—it’s a doctrine. Just ask the Kushaq, which endured 330,000 kilometres of testing through Vietnam’s varied climates, from sweltering +42°C to a frosty -10°C.
Yet, Škoda’s strategy isn’t all about hardware. With Vietnam boasting only 34 passenger vehicles per 1,000 inhabitants in a nation of 100 million people, its automotive market is a gold rush waiting to happen. Škoda’s expansion since its Vietnam debut in September 2023 already includes 15 sales outlets, and the target is an impressive 32 dealerships by the end of 2025 . The brand ups the ante with customer-centric models tailored for the local mindset—left-hand drive, adaptive cruise control, blind spot monitoring, and synthetic leather upholstery ensure that these vehicles not only meet but exceed local expectations.
Lest we forget, the Quang Ninh plant is just the beginning. Nguyen Anh Tuan, Chairman of Thanh Cong Group, called it the “core project” of their automotive complex, envisioning a future that includes new energy and electric vehicles among other innovations. With Vietnam offering Škoda a gateway to the larger Indo-Pacific market, Škoda’s aspirations clearly extend well beyond its Czech borders.
Škoda’s notebook is full of ambitious plans, from the Vietnam exclusive Kushaq and Slavia to a growing ASEAN presence, and the increasing integration of e-models and affordable vehicles into its lineup as part of its Škoda Strategy 2030 . With 926,000 vehicles delivered in 2024 globally, the automaker’s steering wheel grips are firm on growth acceleration . Vietnam’s automotive market may be in its early chapters, but Škoda is already scripting a saga of synergy, strategy, and sedans—a testament to its bold march into the next decade.
