Škoda Auto Enters Vietnam; To Launch Karoq and Kodiaq

In a bid to expand its presence in the South Asian market, Skoda Auto announced its entry into the Vietnamese market to launch European-spec vehicles starting later this year. 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. The first models, starting with the Karoq and Kodiaq, will be imported from Europe, while local CKD production is planned to start next year.

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, India and Europe. During the preparations, it has been clear that at 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.”

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 September 25 onwards. Additional showrooms in central and south Vietnam are in the pipeline. The goal is to expand the dealer network to 20 Škoda dealerships by 2025 and 30 by 2028.

Later on, Škoda plans to launch the Octavia and Superb models along with the all-electric Enyaq. Starting in the second half of 2024, the first Kushaq vehicles will have been exported from the Pune facility in India to Vietnam for assembly from CKD kits, with the Slavia set to follow in 2025.

Construction of a production line at the Viet Hung Industrial Park in Quang Ninh province by Škoda’s local partner TC Group is already underway. Based on market trends, there are ambitions to ramp up production, potentially assembling as many as 27,000 vehicles annually after 2027.