Skoda initiates sales of Kushaq models in Vietnam through CKD imports
Skoda, the renowned Czech automobile manufacturer, is strengthening its presence in Vietnam and the wider ASEAN region. The company has announced plans to begin local assembly of vehicles in the country, starting with the Slavia model.
The additional components for the Slavia model will be supplied from Skoda's Mlada Boleslav plant in the Czech Republic. Pre-series vehicles are currently undergoing validation and testing in Vietnam, with series production set to begin in the coming weeks.
In a strategic move, Skoda will be shipping CKD kits of the Slavia model from Pune, India, to the QuangNinh assembly plant in Vietnam. This local assembly will allow Skoda to shorten lead times for vehicles in the Vietnamese market.
The QuangNinh plant, built in collaboration with regional partner Thanh Cong Group (TC Group), was officially opened in March this year. The plant is equipped with a welding shop, paint shop, and a final assembly line using the latest technology.
Through this partnership, Skoda is helping to lay the foundation for a sustainable and competitive local industry in Vietnam. Localised CKD assembly offers Skoda greater flexibility in adapting to local demand.
Skoda began selling vehicles in Vietnam at the end of 2023, starting with the Karoq and Kodiaq models imported as completely built units (CBU) from the carmaker's Czech Republic plant. The Kushaq SUV, the first Škoda model built in Vietnam for the local market, was recently introduced. The Kushaq SUV is assembled from imported complete knockdown (CKD) kits prepared and packed at Skoda's Parts Expedition Centre in Pune, India.
In addition to the local assembly, Skoda plans to expand its dealership network to 32 locations across Vietnam this year. This expansion is expected to create jobs and contribute to skills development, further strengthening the local automotive ecosystem.
Skoda's actions align with the Vietnamese government's automotive development strategy, aiming to promote local production and create a competitive domestic industry. The CEO of Skoda, Klaus Zellmer, has reported on the production of the Kushaq and Slavia SUV models, as well as the cooperation with the Thanh Cong Group in Vietnam.
The QuangNinh plant's modular design allows for further expansion based on market demand, indicating Skoda's commitment to long-term growth in Vietnam and the ASEAN region. By offering European-standard vehicles at more accessible prices through CKD production, Skoda is poised to unlock growth potential in this dynamic market.
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