Škoda Auto, a Czech automaker, has recently inaugurated a new production facility in Vietnam in collaboration with its regional partner and investor, Thanh Cong Group. This strategic move signifies Škoda Auto’s commitment to expanding its global presence beyond Europe.
Situated in Quang Ninh province, the new facility will focus on assembling the Škoda Kushaq SUV and Slavia sedan by importing completely knocked-down (CKD) kits from India’s Škoda Auto logistics centre in Pune. Andreas Dick, Škoda Auto’s board member for production and logistics, emphasized the plant’s adherence to the company’s high manufacturing standards.
The proximity of the facility to the port of Haiphong ensures efficient delivery of CKD kits from India, strengthening synergies crucial for Škoda’s success in Vietnam and the wider region. Series production of the Kushaq SUV has already commenced, with the assembly of the Slavia sedan scheduled to begin in the summer.
The new plant features an assembly line, quality control centre, precision measurement facility, and a test track replicating local road conditions. Additionally, advanced technology such as a welding shop, paint shop, contactless 3D measurement, four-layer paint application, and anti-corrosion treatments further enhance the manufacturing processes.
The Kushaq SUV and Slavia sedan, designed with left-hand drive, offer modern safety and comfort features like adaptive cruise control and blind spot monitoring tailored to meet the preferences of local customers. These models, along with the Karoq and Kodiaq SUVs imported from Europe, form an essential part of Škoda’s Vietnamese portfolio.
Škoda has expanded its presence in Vietnam by opening over 15 sales outlets since September 2023, with plans to increase to 32 by the year’s end. Moreover, the brand is leveraging synergies with its Indian production facilities to further expand in the Middle East.
In financial year 2024, Škoda Auto reported a 4.7% increase in sales revenue to €27.8 billion, with operating profit surging by 30% to €2.3 billion. This resulted in a return on sales of 8.3%, up from 6.7% in the previous year.
Overall, Škoda Auto’s new production facility in Vietnam signifies a significant milestone in the company’s global growth strategy, showcasing its dedication to delivering high-quality vehicles to customers in the region.
