Skoda Auto has inaugurated a new production facility in Vietnam in partnership with local investor Thanh Cong Group. The plant, located in Quang Ninh province, officially began assembling the Kushaq SUV from completely knocked-down (CKD) kits imported from Skoda’s logistics hub in Pune, India, on 26 March 2025. Assembly of the Slavia sedan is set to begin later this summer. This move aligns with the brand’s ambition to expand into high-potential ASEAN markets.
It also features a two-kilometre-long test track that replicates Vietnamese road conditions and allows real-world validation. The production process integrates contactless 3D measurements and a four-layer paint system with anti-corrosion treatment. The aim is to maintain Skoda’s high quality benchmarks while producing vehicles suited to the regional climate and driving needs.
Klaus Zellmer, CEO, Skoda Auto, stated the strategic use of CKD kits from India enables Skoda to respond more flexibly to local requirements while reducing delivery timelines and enhancing aftersales support. Andreas Dick, Skoda Auto Board Member for Production and Logistics, highlighted the advantages of the location near Haiphong port, ensuring efficient logistics for Indian-sourced kits.
The locally assembled Kushaq and Slavia models will feature left-hand drive configurations, advanced safety technologies like adaptive cruise control and blind spot monitoring, and comfort features such as synthetic leather interiors. These products will complement Skoda’s existing CBU imports of the Karoq and Kodiaq from Europe. The company has opened 15 outlets since entering Vietnam in September 2023 and plans to scale up to 32 dealerships by the end of 2025.
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