Škoda Auto Celebrates Key Internationalization Milestone with Vietnam Launch
Jaipur: Škoda Auto has taken an important step in its internationalisation strategy today with its entry into the Vietnamese market. A celebratory event took place with representatives of the Vietnamese and Czech governments alongside Škoda’s local distribution and production partner, TC Group. Škoda Auto projects a rapid expansion of the dealer network to as many as 30 partners and an annual sales potential of over 40,000 units beyond 2030.
Klaus Zellmer, Škoda Auto CEO, says, “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, Škoda Auto Board Member for Sales and Marketing, says: “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 over 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.”
Škoda Auto celebrates market launch with celebratory event, plans to expand dealer network
The Czech car manufacturer presented the Kvasiny-produced SUV model series Karoq and Kodiaq, which will be the first models available on the local market. Customers can purchase these at the first Škoda showroom in Hanoi from 25 September onwards. The goal is to expand the dealer network to 20 Škoda dealerships by 2025 and 30 by 2028.
First models imported from Europe in 2023, start of local CKD production in 2024
Škoda has clear plans for Vietnam, including importing the Octavia and Superb models. They’re also introducing the all-electric Enyaq family to meet the rising demand for EVs in Vietnam.
Starting in second half of 2024, Škoda will export Kushaq vehicles from India to Vietnam for assembly from CKD (Completely Knocked Down) kits, with the Slavia will follow in 2025. A production line at Viet Hung Industrial Park is under construction by local partner TC Group. Production could reach 27,000 vehicles annually after 2027 in line with market trends.
High growth potential and projected annual deliveries of over 40,000 units beyond 2030
Vietnam’s automotive market is exceptionally dynamic, ranking fourth in Southeast Asia. With only 38 vehicles per 1,000 people in a population of 100 million, it offers significant growth potential. The brand aims for 30,000 annual sales in the medium term, increasing to over 40,000 after 2030. The Viet Hung Industrial Park, housing the TC Group-owned plant, may expand production and potentially export Škoda models throughout ASEAN.
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