Škoda Auto, the Czech automotive behemoth, marked its debut in the Vietnamese market with aplomb this Monday. A ceremonious event, graced by officials from both Vietnamese and Czech governments alongside Škoda’s local ally, TC Group, heralded this new beginning.
With an unwavering plan to escalate its dealer network to 30 partners swiftly, Škoda Auto envisions an ambitious annual sales horizon of over 40,000 units beyond 2030. Initially, the European market will channel the models Karoq and Kodiaq to Vietnam, transitioning to local Completely Knocked Down (CKD) production next year. This strategic pivot to initiate CKD production, bolstered by Vietnam’s geographic affinity to India, positions Vietnam as Škoda’s conduit to the tantalizing ASEAN market.
Škoda Auto’s CEO, Klaus Zellmer, articulated his enthusiasm about entwining Škoda’s rich legacy with Vietnam’s dynamically evolving marketplace. He remarked, “This is the next step in our accelerating internationalization strategy, strengthening our brand in the ASEAN region and intensifying the synergies between our two key markets of India and Europe.” He further extolled TC Group as an exemplary ally, nurturing a bright future in production and sales.
Echoing the fervor, Martin Jahn, Škoda Auto Board Member for Sales and Marketing, expressed, “This move solidifies Škoda’s commitment to serving our Vietnamese customers and becoming an important presence in the local market.”
The inaugural fleet of Kvasiny-fabricated SUV model series Karoq and Kodiaq are now available to Vietnamese consumers at Škoda’s pristine showroom in Hanoi. With the groundwork laid for additional showrooms in central and south Vietnam, the objective is a sturdy network of 20 Škoda dealerships by 2025 and 30 by 2028.
The roadmap for the Vietnamese market is astutely drafted, boasting a diverse model portfolio to cater to variegated consumer predilections. Notably, the all-electric Enyaq family is queued to meet the rising appetite for electric vehicles among Vietnamese patrons.
Come the latter half of 2024, Škoda anticipates unlocking significant regional synergies, with the first consignment of Kushaq vehicles exported from Škoda’s Pune facility in India to Vietnam for CKD assembly, trailed by the Slavia in 2025. A cutting-edge production line is being sculpted at the Viet Hung Industrial Park in Quang Ninh province by TC Group, with aspirations to escalate production to as many as 27,000 vehicles annually after 2027.
Vietnam’s automotive domain is pulsating with potential, currently holding the reins as Southeast Asia’s fourth-largest automotive market. With a scant 38 vehicles per 1,000 inhabitants in a populace of nearly 100 million, along with foreseen national economic ascension, Vietnam is ripe with automotive potential. The nascent alliance between Škoda Auto and TC Group not only amplifies Škoda’s global outreach but also primes Vietnam to evolve into a significant automotive nucleus in the ASEAN ambit.
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