Skoda has officially begun local assembly of its Kushaq SUV and Slavia sedan at a newly established facility in Vietnam’s Quang Ninh province. Developed in partnership with Thanh Cong Group, the plant marks a significant step in Skoda’s global expansion, strengthening its foothold in Southeast Asia’s rapidly growing automotive market.
The new assembly facility, which became operational on March 26, 2025, will initially focus on assembling Skoda vehicles from complete knock-down (CKD) kits. The CKD kits for both models are prepared at Skoda’s logistics centre in Pune, India, and imported to Vietnam, benefiting from the geographical synergies. Skoda says production of the Kushaq has already started, while the first locally assembled Slavia sedans are set to roll off the line this summer.
”Vietnam represents one of the fastest-growing automotive markets in Southeast Asia, making it a key target for automakers seeking to expand their global footprint”
This move aligns with Skoda’s strategy to leverage regional manufacturing synergies and cater to the growing demand for vehicles in Vietnam, a market with significant expansion potential within the ASEAN (Association of Southeast Asian Nations) region.
A strategic expansion into Vietnam
Vietnam represents one of the fastest-growing automotive markets in Southeast Asia, making it a key target for automakers seeking to expand their global footprint. Skoda, which launched operations in the country in September 2023, has already established 15 sales outlets and aims to expand its dealership network to 32 locations by the end of 2025.
By choosing Quang Ninh province for its assembly plant, Skoda says it benefits from proximity to one of Vietnam’s largest and most modern ports, ensuring efficient logistics and streamlined supply chain management.
The plant was built in collaboration with Thanh Cong Group, a regional automotive partner and investor. The facility is equipped with state-of-the-art manufacturing technology, including a welding shop, paintshop, and final assembly line.
Installing the latest manufacturing technology
Skoda says the new assembly plant integrates advanced production techniques to enhance efficiency, quality control, and durability. These include contactless 3D measurement technology for precision quality checks. A four-layer paint application process and anti-corrosion wax treatment to improve vehicle longevity in Vietnam’s tropical climate.
There’s also a dedicated, 2km test track, designed to simulate local road conditions for real-world vehicle testing.
The OEM is tailoring its offerings to match Vietnamese consumer preferences, and by prioritising local production, Skoda aims to offer cost-competitive models, attract new customers, and expand its presence in Southeast Asia, where low car ownership rates offer a good opportunity for growth.
Expansion in ASEAN markets and future growth
Skoda’s Vietnam expansion is part of a broader global strategy, which includes leveraging production facilities in India and expanding into the Middle East. By capitalising on regional manufacturing efficiencies, leveraging CKD assembly, and expanding its sales network, Skoda aims to position itself as a key player in the competitive Southeast Asian market.
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