Skoda has just fired up its production line in Vietnam, officially beginning local assembly of the Kushaq SUV and soon-to-follow Slavia sedan. This marks a major milestone for the brand, as it’s the first time either of these models is being produced outside India. Until now, Vietnamese customers received these cars as CBUs (Completely Built Units), but with the shift to CKD (Completely Knocked Down) assembly, things are changing big time.
Strategy
So, why Vietnam? Simple. It’s all part of Skoda’s grand plan to grow its footprint in Southeast Asia. The brand is betting big on the ASEAN region, and Vietnam is the launchpad. According to Skoda, this move allows them to take full advantage of their India-based operations while building a strong presence in one of Asia’s fastest-growing auto markets.
Klaus Zellmer, Skoda Auto’s CEO, summed it up perfectly: “We’re laying the foundation for long-term success here, not just for Skoda but for our partner Thanh Cong Group as well.”
Location
The new assembly plant is located in Quang Ninh province, strategically positioned to support efficient logistics and distribution. The facility will start by assembling the Kushaq, with Slavia production set to kick off in the coming months.
This marks the beginning of localized manufacturing for Skoda in Vietnam—something that could significantly improve delivery times, reduce pricing pressure, and make the brand more competitive in the region.
Models
Let’s talk cars. The Kushaq, already a hit in India, will be the first model to roll off the line in Vietnam. The Slavia, a stylish mid-size sedan, will follow shortly after. Both cars will retain their core India-spec DNA in terms of engine and performance, but with a few tweaks tailored to local preferences.
For instance, Vietnam-spec models will come with added tech features such as Advanced Driver Assistance Systems (ADAS), including blind spot monitoring—a feature not yet standard in their Indian counterparts.
Benefits
So, what’s in it for the buyers? First off, locally assembled cars are typically more affordable than imported ones, thanks to reduced import duties and logistical costs. Plus, local production means better availability and potentially faster after-sales service.
From Skoda’s perspective, this move allows them to scale operations efficiently while offering more competitive pricing. And for the Vietnamese market, it means more choices and a higher level of customization for local needs.
Outlook
Skoda’s entry into local manufacturing in Vietnam is more than just a production shift—it’s a strategic move to challenge Japanese and Korean dominance in the ASEAN region. With its India-developed models like Kushaq and Slavia leading the charge, Skoda is clearly aiming to punch above its weight.
If this strategy clicks, don’t be surprised to see more India-built Skoda models rolling out across other ASEAN countries in the near future.
FAQs
Where is Skoda’s Vietnam plant located?
In Quang Ninh province, Vietnam.
Which model is being assembled first?
The Kushaq is the first to be assembled.
What does CKD assembly mean?
Completely Knocked Down assembly of vehicle parts.
Will Vietnam-spec cars have ADAS?
Yes, including blind spot monitoring.
Why did Skoda choose Vietnam?
To expand in ASEAN and reduce costs.
