Škoda Auto is expanding its international operations by supplying completely knocked-down (CKD) kits from its logistics hub in Pune, India, for local assembly in Vietnam. The company, in partnership with Thanh Cong Group, has commenced assembly of the Kushaq SUV, with production of the Slavia sedan scheduled to begin in the summer.
The CKD kits are transported from Pune to a newly established facility in Quang Ninh province, which was built in collaboration with Thanh Cong Group. The plant features a welding shop, a paint shop, and a final assembly line. Its location near the port of Haiphong facilitates efficient logistics for the imported kits.
Andreas Dick, Škoda Auto Board Member for Production and Logistics, stated, “The new state-of-the-art manufacturing facilities fully reflect Škoda’s high manufacturing benchmarks. The plant is located in Quang Ninh province, close to the port of Haiphong – one of Vietnam’s largest and most modern ports. This ensures the swift delivery of CKD kits from our logistics hub in Pune, India, while also strengthening the synergies that are vital to Škoda’s success in Vietnam and the wider region.”
The plant is part of the Thanh Cong Viet Hung Automotive and Auxiliary Complex, which aims to enhance automotive production and technology in Vietnam. Nguyen Anh Tuan, Chairman of the Board of Thanh Cong Group, noted that the facility is expected to support future production of a diverse range of vehicles, including electric and specialized models.
Since entering the Vietnamese market in September 2023, Škoda Auto has established 15 sales outlets, with plans to expand the network to 32 dealerships by the end of 2025. The Kushaq and Slavia models will join Škoda’s existing portfolio in Vietnam, which includes the Karoq and Kodiaq SUVs imported from Europe.
Vietnam is the fourth-largest automotive market in Southeast Asia, with 34 passenger vehicles per 1,000 inhabitants in a country of approximately 100 million people. Škoda Auto is positioning itself to expand in the region by leveraging its operations in India and Vietnam, aligning with its broader international expansion strategy.