Škoda Auto has taken an important step in its internationalisation strategy with its entry into the Vietnamese market. A celebratory event took place with representatives of the Vietnamese and Czech governments alongside Škoda’s local distribution and production partner, TC Group.
Škoda Auto projects a rapid expansion of the dealer network to as many as 30 partners and an annual sales potential of over 40,000 units beyond 2030. The first models, starting with the Karoq and Kodiaq, will be imported from Europe. Local CKD production, planned to start next year, aims to leverage synergies due to the country’s proximity to India. Škoda views Vietnam as a gateway to the promising ASEAN region.
First models imported from Europe in 2023, start of local CKD production in 2024
Škoda has a well-defined roadmap for the Vietnamese market, with plans to expand its model portfolio in response to customer preferences. The Octavia and Superb models are slated for importation to Vietnam in the medium term. Additionally, the all-electric Enyaq family is being introduced to cater to the growing demand for electric vehicles among Vietnamese consumers.
Starting in the second half of 2024, Škoda will be tapping into significant regional synergies. By then, the first Kushaq vehicles will have been exported from the Pune facility in India to Vietnam for assembly from CKD (Completely Knocked Down) kits, with the Slavia set to follow in 2025. Construction of a production line at the Viet Hung Industrial Park in Quang Ninh province by Škoda’s local partner TC Group is already underway. Based on market trends, there are ambitions to ramp up production, potentially assembling as many as 27,000 vehicles annually after 2027.