Having announced its entry earlier this year, Skoda Auto has commenced sales in Vietnam, marking an all-new market for the Czech automaker. Skoda Auto has partnered with the TC Group for local distribution and production and a celebratory event was held earlier recently with representatives of the Vietnamese and Czech governments in attendance. Skoda Auto India will play a significant role in supplying products to Vietnam from the Chakan plant.
Skoda has commenced operations with the sale of the Karoq and Kodiaq SUVs in Vietnam, which are being imported as Completely Built Units (CBU). The automaker plans to introduce the Kushaq compact SUV in the second half of 2024, which will be exported from India. The Skoda Kushaq will arrive in Vietnam via the Completely Knocked Down (CKD) route and will be locally assembled in the country by the TC Group. Skoda Auto expects to expand to as many as 30 dealer partners and annual sales of over 40,000 units beyond 2030.
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Speaking on the occasion, Klaus Zellmer, Skoda Auto CEO, said, “We are excited to engage with Vietnam’s dynamic economy and a new group of customers in this fast-growing market. This is also the next step in our accelerating internationalisation strategy, strengthening our brand in the ASEAN region and intensifying the synergies between our two key markets of India and Europe. During the preparations, it has been clear that in TC Group we have an excellent partner for the production and sale of our attractive model portfolio. I look forward to starting a successful future together.”
Martin Jahn, Skoda Auto Board Member for Sales and Marketing, said, “Today marks an important milestone in the history of Skoda Auto. By entering the Vietnamese market, we are further strengthening our position in the global automotive industry. We have a clear strategy, ambitious targets, and a strong local partner in TC Motor. Our medium-term plan is to engage around 30 local contractual partners, assemble around 30,000 cars from CKD kits, and realise a sales potential of more than 40,000 vehicles annually beyond 2030. This move solidifies Škoda’s commitment to serving our Vietnamese customers and becoming an important presence in the local market.”
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Sales for the Skoda Karoq and Kodiaq commenced on September 25 from the automaker’s first dealership in Hanoi, the capital of Vietnam. The company plans to open additional showrooms in central and south Vietnam with 20 outlets to be inaugurated by 2025 and 30 by 2028. Apart from the Karoq and Kodiaq, the automaker plans to introduce the Octavia and Superb soon. The Skoda Enyaq electric SUV is also slated to arrive in the market at a later date.
Starting in the second half of 2024, Škoda will be tapping into significant regional synergies. By then, the first Kushaq vehicles will have been exported from the Pune facility in India to Vietnam for assembly from CKD (Completely Knocked Down) kits, with the Slavia set to follow in 2025. Construction of a production line at the Viet
Hung Industrial Park in Quang Ninh province by Škoda’s local partner TC Group is already underway. Based on market trends, there are ambitions to ramp up production, potentially assembling as many as 27,000 vehicles annually after 2027. Skoda could use its local assembly facility in Vietnam to export models to other key markets in the ASEAN region.
First Published Date: 26 Sep 2023, 21:04 PM IST
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