Volkswagen Group’s Czech carmaker, Skoda Auto, expects to complete construction of its new vehicle assembly plant in Vietnam in the first quarter of 2025 – expanding the brand’s reach in the Asia-Pacific region.
Skoda has partnered with local distributor Thành Công, which also distributes Hyundai vehicles, to build a US$500m plant in Vietnam’s northern province of Quảng Ninh to supply the local market and to export vehicles to neighbouring markets in Southeast Asia.
Go deeper with GlobalData
The facility will initially produce internal combustion engine (ICE) vehicles, including the Slavia sedan and Kushaq compact SUV, before introducing battery electric vehicles (BEVs) later on. The plant, covering an area of 36 hectares, will have a production capacity of 120,000 vehicles per year. The automaker received a number of investment incentives from the Vietnamese government, including support for leasing the land and for building accommodation for its workers.
Skoda began exporting vehicles to Vietnam in 2023 and sees significant growth potential with local production operations. Skoda Vietnam’s marketing director, Vũ Mạnh Cường, told local reporters: “We recognise that Skoda has growth opportunities in Vietnam and in Asia.”
Skoda currently has a manufacturing presence in China and India, but the company remains a marginal player in these markets – with sales declining sharply last year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
