Following its success at the Better Choice Awards 2024 and the Vietnam Motor Show 2024, Skoda is now preparing for its next major step.

Skoda plant to be inaugurated in mid-December

Skoda has announced that its assembly plant, located within the Thanh Cong Viet Hung Automotive and Supporting Industries Complex in Quang Ninh, is set to open ahead of schedule in mid-December.

This indicates that construction and production lines have been completed and are ready for operation. The plant will utilise technology from Skoda's factory in Mlada Boleslav, Czech Republic, ensuring that vehicles assembled in Vietnam uphold the same quality standards as the Karoq and Kodiaq models currently imported from Europe.

Covering 365,000 square metres within a 107,639 square feet industrial complex, the plant represents a total investment of VND 8,679 billion (US$ 34.2 million). It is larger than Honda's 280,000 factory in Vinh Phuc and aims to serve both the domestic market and export to other ASEAN countries.

The first two locally assembled (CKD) models to be launched are the B-segment SUV Kushaq and an as-yet-unnamed saloon. Based on Skoda's European line-up, this saloon is expected to be the B-segment Slavia. This aligns with Skoda Vietnam's goal of gradually positioning the brand as "a car for every household" by providing quality products at accessible prices.

The B-segment market in Vietnam is highly active, driven by affordability, attracting many entry-level car buyers, while still offering features and cabin space comparable to higher segments.

Despite the strong competition, experts believe Skoda can compete effectively if priced competitively. Industry expert Nguyen Manh Thang, Director of Whatcarvn, stated, "If Skoda Vietnam prices it around VND 600-650 million, it will be very competitive."

Additionally, Skoda has confirmed plans to continue importing higher-end models directly from Europe, starting with the new-generation Kodiaq.

Early success

Skoda previously made a notable impact on the Vietnamese market by winning the "Outstanding New Car Brand" award at the Better Choice Awards 2024. This community-voted accolade reflects a positive consumer reception of the brand from the Czech Republic. Skoda's European origins and the high quality of its imported vehicles are seen as advantages in Vietnam.

At its first appearance at the Vietnam Motor Show, Skoda showcased eight models, including five new models previously unseen in Vietnam: the Superb, Octavia, Enyaq, and notably the new-generation Kodiaq and Kushaq, which are confirmed for upcoming launches.

Skoda Vietnam has clearly established itself in the market, no longer seen as a newcomer a year into its entry. The new plant will provide a significant advantage and reinforces Skoda's commitment to the Vietnamese market through its substantial investment.

This lays a foundation for consumer trust in Skoda as the supply chain strengthens and distribution processes become more refined, according to Nguyen Manh Thang.