Czech automaker Škoda Auto, in partnership with its regional partner and investor Thanh Cong Group, has commenced operations at its new production facility in Vietnam.
Located in Quang Ninh province, the new facility marks a pivotal step in the Czech automaker’s efforts to fortify its global footprint, particularly outside its European base.
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The company will assemble the Škoda Kushaq SUV and Slavia sedan by importing completely knocked-down (CKD) kits from India’s Škoda Auto’s logistics centre in Pune.
Škoda Auto board member for production and logistics Andreas Dick said: “The new 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.”
Series production of the Kushaq SUV has already commenced, with the Slavia sedan’s assembly slated to commence this summer.
The assembly line, the plant’s largest section, is complemented by a quality control centre, precision measurement facility, and a test track that simulates local road conditions.
In addition to the final assembly line, the new plant also features advanced technology, including a welding shop, and paint shop.
Škoda Auto’s new facility also boasts manufacturing and production technology, such as contactless 3D measurement, a four-layer paint application, and anti-corrosion treatments.
The Kushaq SUV and Slavia sedan, designed with left-hand drive, are equipped with modern safety and comfort features such as adaptive cruise control and blind spot monitoring, catering to the preferences of local customers.
Škoda, a subsidiary of the German Volkswagen Group, said these models are integral to its Vietnamese portfolio, which also includes the Karoq and Kodiaq SUVs imported from Europe.
Since September 2023, Škoda has opened over 15 sales outlets in Vietnam, with plans to increase this to 32 by the end of the year.
The brand is also expanding in the Middle East, utilising synergies with its Indian production facilities.
Recently, Škoda Auto reported a 4.7% increase in sales revenue to €27.8bn for financial year 2024.
Operating profit surged by 30% to €2.3bn, resulting in a return on sales of 8.3%, up from 6.7% in the previous year.
