Škoda Auto and Thanh Cong Group Open Assembly Plant in Vietnam to Boost Production of Kushaq and Slavia Models!

Škoda Auto, in partnership with Thanh Cong Group, has officially inaugurated a new assembly plant in Vietnam on March 26, marking a significant milestone in the company’s strategic expansion in the ASEAN region. The plant, located in Quang Ninh province, will initially assemble the Škoda Kushaq SUV and the Slavia sedan, models that are expected to cater to the growing demand for high-quality, affordable vehicles in the region.

This new plant is an integral part of Škoda Auto’s strategy to extend its global footprint, particularly outside of its primary European markets. The company is leveraging completely knocked-down (CKD) kits for local assembly, with the Kushaq SUV and Slavia sedan kits being imported from India. This approach capitalizes on regional synergies and cost efficiencies. The assembly of these models in Vietnam is expected to enhance the company’s market position by offering vehicles that cater to local preferences while capitalizing on the benefits of cost-effective regional manufacturing.

The first phase of production will focus on the Škoda Kushaq SUV, with the Slavia sedan joining the production line in the summer of 2025. The plant’s strategic location near Haiphong, one of Vietnam’s largest and most modern ports, ensures efficient logistics and quick delivery of CKD kits from Škoda’s logistics hub in Pune, India. This efficient supply chain is designed to minimize production downtime and optimize operational costs.

The new plant is equipped with state-of-the-art manufacturing technology, which includes advanced welding, painting, and final assembly capabilities. Škoda Auto ensures high product quality by implementing rigorous testing procedures. The Kushaq has undergone extensive testing, with over 330,000 kilometers of road testing on various Vietnamese terrains and climate tests that have evaluated the vehicle’s performance in temperature ranges from -10°C to +42°C under high humidity. This testing ensures that the vehicles are well-suited to the demanding conditions of the Vietnamese market.

Moreover, the plant features cutting-edge manufacturing technologies such as contactless 3D measurement systems, a four-layer paint application process, and anti-corrosion treatments. The facility also includes a precision measurement center and a nearly 2-kilometer-long test track, simulating local road conditions to ensure that each vehicle meets Škoda’s high standards for quality and durability.

The models produced at this plant are specifically designed with the needs of Vietnamese consumers in mind. Both the Kushaq SUV and Slavia sedan will feature left-hand drive configurations, along with advanced features such as adaptive cruise control, blind-spot monitoring, and synthetic leather upholstery. These locally assembled vehicles will complement Škoda Auto’s imported models, such as the Karoq and Kodiaq SUVs, providing a comprehensive range of options for Vietnamese customers.

The production of the Kushaq and Slavia models in Vietnam will also support the local automotive ecosystem and contribute to the economic development of the region. The new facility aims to help Škoda Auto maintain a competitive edge in the Southeast Asian market by producing vehicles that are not only tailored to local preferences but also built using world-class manufacturing processes.

Since its initial launch in Vietnam in September 2023, Škoda Auto has steadily increased its presence, having opened 15 sales outlets in the country. The company plans to expand this network to 32 dealerships by 2025, further solidifying its position in the Vietnamese automotive market. With its new assembly plant in Quang Ninh province, Škoda Auto is well-positioned to tap into the growing demand for quality automobiles in Vietnam and other parts of the ASEAN region.

Klaus Zellmer, CEO of Škoda Auto, remarked, “This new assembly line represents a significant step forward in Škoda’s expansion in Vietnam and strengthens our position in the ASEAN market. By capitalizing on synergies with India, we are creating a solid foundation for success, both for Škoda and our local partner Thanh Cong Group.”

The partnership with Thanh Cong Group further enhances Škoda’s reach in Vietnam. Nguyen Anh Tuan, Chairman of Thanh Cong Group, highlighted the plant’s role within the Thanh Cong Viet Hung Automotive Complex, which is focused on fostering European automotive collaborations. The complex aims to improve production capabilities and develop future solutions for new energy vehicles and electric vehicles.

The opening of the Škoda Auto assembly plant in Vietnam marks a pivotal moment in the company’s global expansion efforts. By combining high-quality manufacturing, regional synergies, and customer-centric product design, Škoda Auto is poised to strengthen its presence in the rapidly growing ASEAN market. With a focus on producing vehicles that meet local consumer demands while leveraging advanced production technologies, Škoda’s venture into Vietnam promises to be a significant success in the region’s automotive sector.