Škoda Auto Launches New High-Tech Car Assembly Plant in Vietnam to Drive ASEAN Expansion
Škoda Auto, alongside its regional partner and investor Thanh Cong Group, officially inaugurated a new automotive assembly plant in Quang Ninh province, Vietnam, on 26 March. The facility marks a pivotal step in Škoda’s international growth strategy, reinforcing the Czech brand’s commitment to expanding beyond its European stronghold into the dynamic Southeast Asian market.
The plant begins operations with the assembly of the Kushaq SUV, with the Slavia saloon set to join the production line this summer. Both models are assembled from completely knocked-down (CKD) kits imported from Škoda Auto’s logistics hub in Pune, India. This strategic setup leverages geographical synergies between India and Vietnam, streamlining logistics and enhancing efficiency.
Situated near the modern port of Haiphong, the new facility features cutting-edge manufacturing technology, including a welding shop, a four-layer paint shop, and a fully-equipped assembly line. It also boasts advanced production techniques such as contactless 3D measurement systems, anti-corrosion treatments, and a nearly two-kilometre test track replicating diverse Vietnamese road conditions.
Since its market entry in September 2023, Škoda has rapidly expanded its presence in Vietnam, opening over 15 dealerships nationwide, including the Experience Centre in Hanoi. The network is set to grow to 32 outlets by the end of 2025, supporting the brand’s increasing production capacity and local footprint.
Klaus Zellmer, CEO of Škoda Auto, commented: “Launching this new plant is a key milestone in our ASEAN growth journey. By building on our Indian operations, we’re creating a strong foundation for Škoda’s success in Vietnam and the wider Indo-Pacific region.”
Andreas Dick, Škoda Auto Board Member for Production and Logistics, added: “This facility embodies our highest manufacturing standards. Its strategic location ensures efficient transport of CKD kits and strengthens the regional supply chain – a vital factor for long-term competitiveness.”
Nguyen Anh Tuan, Chairman of Thanh Cong Group, noted: “This new Škoda plant forms the heart of our Thanh Cong Viet Hung Automotive and Auxiliary Complex. It represents our ambition to foster European technology partnerships, boost local production capabilities, and eventually diversify into electric and speciality vehicles.”
Škoda rigorously tests its locally assembled models under real-world Vietnamese conditions. The Kushaq has undergone over 330,000 kilometres of testing across various terrains and climates, ensuring it meets quality standards and local consumer expectations.
The Kushaq and upcoming Slavia models are left-hand drive and have advanced features such as adaptive cruise control, blind spot monitoring, and synthetic leather interiors explicitly tailored for the Vietnamese market.
These locally assembled vehicles form the cornerstone of Škoda’s product offering in Vietnam, complementing European imports such as the Karoq and Kodiaq SUVs.
As the lead brand for the Volkswagen Group’s Brand Group Core in the ASEAN region, Škoda Auto is well-positioned to tap into one of the fastest-growing automotive markets. With just 34 passenger cars per 1,000 people in a country of nearly 100 million, Vietnam offers enormous growth potential.
Škoda’s expansion in Southeast Asia, paired with strategic links to its Indian operations, also paves the way for broader market penetration in the Middle East and other Indo-Pacific regions.
