Škoda Auto & Thanh Cong Group open Vietnam plant for Kushaq & Slavia assembly

The plant, located in Quang Ninh province, assembles completely knocked-down (CKD) kits imported from India, leveraging geographical synergies. Initially focused on the Kushaq SUV, production will expand in summer 2025 to include the Slavia sedan. Equipped with advanced technology, the facility features a welding shop, paint shop, and final assembly line.

On 26 March, Škoda Auto and its regional partner, Thanh Cong Group, officially inaugurated a new production plant in Vietnam for assembling the Škoda Kushaq and Slavia. This milestone strengthens Škoda’s international expansion strategy, enhancing its presence beyond Europe.

The plant, located in Quang Ninh province, assembles completely knocked-down (CKD) kits imported from India, leveraging geographical synergies. Initially focused on the Kushaq SUV, production will expand in summer 2025 to include the Slavia sedan. Equipped with advanced technology, the facility features a welding shop, paint shop, and final assembly line.

Since entering Vietnam in September 2023, Škoda Auto has overseen Volkswagen Group’s ASEAN operations, targeting the region’s high-growth potential. Vietnam serves as a strategic gateway to the Indo-Pacific, with 15 sales outlets already established and plans to expand to 32 dealerships by 2025.

Klaus Zellmer, CEO of Škoda Auto, stated: “Opening this new assembly line marks a milestone in our expansion into the rapidly growing Vietnamese market and strengthens our position in the ASEAN region. By leveraging synergies with our key Indian market, we are setting the stage for success not only for Škoda but also for our local partner, Thanh Cong Group. I look forward to putting the first Škoda vehicles from the Vietnamese plant in front of customers very soon.”

Andreas Dick, Škoda Auto Board Member for Production and Logistics, added: “The new state-of-the-art manufacturing facilities fully reflect Škoda’s high manufacturing benchmarks. The plant is located in Quang Ninh province, close to the port of Haiphong – one of Vietnam’s largest and most modern ports. This ensures the swift delivery of CKD kits from our logistics hub in Pune, India, while also strengthening the synergies that are vital to Škoda’s success in Vietnam and the wider region.”

Nguyen Anh Tuan, Chairman of the Board of Thanh Cong Group, stated: “The first Škoda Auto plant in Vietnam is the core project in the Thanh Cong Viet Hung Automotive and auxiliary Complex which has been well-planed and invested by Thanh Cong Group and aims to foster European automotive collaboration, enhance production and technology, and manufacture a diverse range of products, including new energy vehicles and electric vehicles, specialized and custom designs vehicles in the future.” 

Strategically advantageous location and state-of-the-art production technology  Series production of the Kushaq SUV officially began yesterday, with the Slavia sedan set to follow this summer. Both models are assembled from CKD kits prepared at Škoda Auto’s logistics centre in Pune, India, capitalising on geographical synergies. The plant’s location near one of Vietnam’s largest and most modern ports ensures an efficient supply chain.

The newly built facility is equipped with cutting-edge technology for both manufacturing processes – such as contactless 3D measurement – and production techniques, including a sophisticated four-layer paint application and an anti-corrosion wax treatment for body cavities. The assembly line is the largest section of the plant, which also houses a welding shop and a paint shop. The site features a quality control centre, a precision measurement facility, and a nearly two-kilometre-long test track designed to replicate a variety of local road conditions.