Skoda Auto fortifies its assembly plant-and CKD export immunity to India-leverage to penetrate the Southeast Asian market by developing a new assembly plant at the moment. Obviously, this is commensurate with the expansion strategic move for the brand.
Skoda Extends Its Umbrella Further into the World with Local Assembly in Vietnam
Skoda Auto inaugurated new manufacturing infrastructure in Quang Ninh province, Vietnam, in partnership with Thanh Cong Group as part of its aggressive step toward global expansion. The plant will assemble Skoda Kushaq SUVs and Slavia sedans, sourced entirely via CKD (Completely Knocked Down) from India.
Mass production of the Kushaq began on March 26, 2025. The Slavia will be launched later this summer. Together with newer models, Skoda's existing improvements in Vietnam include Karoq and Kodiaq SUV from Europe.
This new project amplifies the strategy that Skoda has for ASEAN countries, focusing not just on one of the fastest-growing automotive markets in Southeast Asia but on a huge potential as well.
A Technology Manufacturing Hub in Vietnam
High-Tech Facilities for World-Class Production are made. The new plant in Quang Ninh is integrated with the very latest, cutting-edge manufacturing technologies, guaranteeing global production standards will be maintained.
Important components of the facility include:
Welding shop, paint shop, and final assembly line
State-of-the-art anti-corrosion treatment and precision measurement center
2-kilometer test track for rigorous quality testing
This plant is very well located adjacent to Haiphong Port, one of the largest and most advanced ports in Vietnam, which puts the plant very well in logistics for CKD imports from India to make it a center for Skoda's operations within ASEAN.
Why Go Into Vietnam? - Skoda's Strategic Moves into ASEAN
Vietnam is becoming a new auto market in Southeast Asia with only 34 passenger cars for every 1,000 people in a country with a population of 100 million. The reality of growing consumer realizations and economic growth makes it a fat opportunity for automobile manufacturers.
Since entering Vietnam in September 2023, Skoda has built a strong presence in that regard in the following ways:
Setting up 15 dealerships, which are targeted to reach 32 by 2025
Launch of the Experience Centre showroom format in Hanoi
Conducting a rigorous test of the Kushaq over 330,000 km on Vietnamese roads at extremely high-low temperature conditions, ranging from -10ºC to +42ºC.
Klaus Zellmer, the CEO of Skoda Auto, considered it an important step and said, "Opening this new assembly line is a milestone in our growth into the fast-developing market in Vietnam and strengthens our positioning in the region within ASEAN. We are making things easier for success not only from the perspective of Skoda but also for our local partner, Thanh Cong Group, through synergies with our key Indian market."
What is Special about Kushaq and Slavia in Vietnam?
Tailored for Vietnamese Roads:
Both Kushaq and Slavia locally assemble left-hand drive vehicles, which will exactly fit the Vietnamese market. Specially included are:
Adaptive Cruise Control
Blind Spot Monitoring
Premium synthetic leather upholstery
This level of localisation ensures that Skoda’s vehicles cater to the driving preferences and conditions of Vietnam.
Andreas Dick, Skoda’s Board Member for Production and Logistics, highlighted the crucial role of India’s CKD exports in this expansion, saying:
“The new state-of-the-art manufacturing facilities fully reflect Skoda’s high manufacturing benchmarks. This ensures swift delivery of CKD kits from our logistics hub in Pune, India, while also strengthening the synergies that are vital to Skoda’s success in Vietnam and the wider region.”
Long-Term Vision of Skoda: More Than Just Vietnam
This is a small step within Skoda's broader ASEAN vision. The brand is determined to grow the Southeast Asia market, using Vietnam as a launch pad for future growth.
Skoda is also moving beyond ASEAN into the Middle East, again relying on India's CKD export capacity to feed into its worldwide ambitions.
Chairman Nguyen Anh Tuan of Thanh Cong Group confirmed this vision as far-fetched yet possible in a thin voice:
“The first Skoda Auto plant in Vietnam is a key project inside the Thanh Cong Viet Hung Automotive and Auxiliary Complex. This project is designed to promote European cooperation in automotive affairs, thus enhancing production and technology to manufacture, amongst others, new energy vehicles and electric vehicles in the future.”
A critical milestone in Skoda's evolution.
Skoda's assembly of Kushaq and Slavia in Vietnam with Indian CKD kits is a strategic initiative to secure the company's Southeast Asia foothold. Skoda's modern facilities backed by an expanding distributor network and localized automobile range are prepared to take advantage of increased Vietnamese demand for passenger cars.
The ensuing growth in the ASEAN markets has proved Skoda Indian CKD exports to be a very useful tool in the larger plan for global expansion.
Also Read: