Vietnam Assembly Revolution: Škoda Taps Indian CKD Synergy for Local Auto Production

Škoda Auto and regional partner and investor, the Thanh Cong Group, officially opened a new production plant in Vietnam on 26 March for the assembly of Škoda Slavia and Kushaq cars.

(IN BRIEF) Škoda Auto, in partnership with Thanh Cong Group, has inaugurated a new assembly facility in Vietnam that will locally produce the Slavia and Kushaq models from CKD kits sourced from Pune, India. The plant, located in Quang Ninh province near Haiphong port, features advanced manufacturing technology and is a critical element in Škoda’s expansion across the ASEAN region. With series production of the Kushaq already underway and plans to launch the Slavia sedan later this summer, the new facility underscores Škoda’s strategy of leveraging geographical synergies to streamline production. Since entering the Vietnamese market in September 2023, Škoda has rapidly expanded its dealership network, with further growth planned. Company leaders, including CEO Klaus Zellmer and Board Member Andreas Dick, as well as Thanh Cong Group’s Chairman Nguyen Anh Tuan, have highlighted the project’s significance in enhancing production efficiency, quality, and future innovation in automotive manufacturing.

(PRESS RELEASE) MLADÁ BOLESLAV, 27-Mar-2025 — /EuropaWire/ —  ŠKODA AUTO, one of the world’s oldest car makers and Czech Republic largest private company part of Volkswagen Group, together with regional partner and investor Thanh Cong Group, has launched a new assembly plant in Vietnam, marking a key milestone in the company’s global expansion strategy. The modern facility in Quang Ninh province is set up to locally assemble the Škoda Slavia and Kushaq models from completely knocked-down (CKD) kits imported from Pune, India, effectively harnessing geographical synergies for enhanced production efficiency.

Production of the Kushaq SUV officially kicked off on 26 March, with plans to initiate series production of the Slavia sedan this summer. This state-of-the-art plant, developed in collaboration with Thanh Cong Group, boasts advanced production lines including a welding shop, paint shop, and final assembly area, all strategically located near Haiphong’s modern port. This prime location ensures swift delivery of CKD kits, while supporting Škoda’s broader ambitions in the ASEAN region, where it also manages the Volkswagen Group’s operations.

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.

Since entering the Vietnamese market in September 2023, Škoda Auto has made significant inroads with an expanding network of sales outlets – 15 to date, with a projected increase to 32 dealerships by the end of this year. “Opening this new assembly line marks a milestone in our expansion into the rapidly growing Vietnamese market and strengthens our position in the ASEAN region. By leveraging synergies with our key Indian market, we are setting the stage for success not only for Škoda but also for our local partner, Thanh Cong Group. I look forward to putting the first Škoda vehicles from the Vietnamese plant in front of customers very soon,” said Klaus Zellmer, CEO of Škoda Auto.

Andreas Dick, Škoda Auto Board Member for Production and Logistics, emphasized that the facility’s cutting-edge manufacturing processes—ranging from contactless 3D measurement to a sophisticated four-layer paint application with anti-corrosion treatments—ensure the highest quality standards. Nguyen Anh Tuan, Chairman of Thanh Cong Group, highlighted the project’s role in fostering European automotive collaboration and paving the way for future innovations, including new energy and electric vehicles. Alongside the newly assembled Kushaq and Slavia, Škoda’s product range in Vietnam is further enriched by the Karoq and Kodiaq SUVs imported from Europe, meeting diverse customer needs in one of Southeast Asia’s fastest-growing markets.

Media contact:

Thomas Drechsler
Head of Communications
e: thomas.drechsler@skoda-auto.cz
LinkedIn

SOURCE: Škoda Auto a.s.