Skoda and regional partner and investor, the Thanh Cong Group, officially opened a new production plant in Vietnam on 26 March for the assembly of 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.
Series production of the Kushaq SUV officially began with the Slavia sedan set to follow this summer. Both models are assembled from CKD kits prepared at Skoda’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 3D 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 two-kilometre-long test track designed to replicate a variety of local road conditions.
To guarantee high product quality, Skoda rigorously tests all locally assembled models under real-world conditions ahead of series production. The Kushaq, for example, has covered more than 330,000km 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 Skoda’s portfolio in Vietnam, complementing the Karoq and Kodiaq SUVs imported from Europe. Since Skoda’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.
Skoda 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, Skoda is also expanding its business activities in the Middle East, capitalising on synergies with its production facilities in India.
