„The cooperation with a local partner in Vietnam marks a milestone in Škoda Auto’s internationalisation strategy: The market entry paves the way to accessing further markets in the ASEAN region. To be able to leverage the enormous sales potential as quickly as possible, we have already begun working intensively on the development of the sales network there: We are establishing the first partner dealerships, starting in Hanoi, followed by Da Nang and Ho Chi Minh City, and we’ll be importing the first vehicles from Europe as early as June.“
Martin Jahn, Škoda Auto Board Member for Sales and Marketing
Vietnam as a gateway to the ASEAN region
The Czech carmaker is taking an important step in its internationalisation strategy with the construction of a TC Motor-invested and owned production plant in the Vietnamese province of Quảng Ninh. Vietnam represents a strategic gateway for the company to the dynamic ASEAN markets and the larger Indo-Pacific region: ASEAN is currently the fastest-growing region in the world, with some countries’ strong economies growing by up to 8% annually. The projected volume of sales for 2030 is also high, at more than 4.5 million vehicles.
The visit by Czech Prime Minister Petr Fiala sends a strong signal that the expansion plans of the Czech carmaker are backed by the highest level of government. The Prime Minister assured the company’s local representatives of his support. High-ranking government representatives and representatives of the Vietnamese partner company, TC Motor, also took the opportunity to inform the guests about the plans for the future of Vietnamese-Czech collaboration.
Škoda Auto’s entry into the Vietnamese market allows the company to benefit from synergies offered by the geographical proximity to India: Local production of the made-in-India Kushaq and Slavia model series from CKD (completely knocked-down) format will begin as early as 2024 at the new plant in Quảng Ninh province.
Sales activities in the market are set to commence in just a few months: Local partner TC Motor will start selling the first European models this summer, with initial dealerships planned in the metropolitan areas of Hanoi and Ho Chi Minh City, as well as one of Vietnam’s biggest cities, Da Nang. The medium- to long-term aim is to expand the Škoda Auto dealer network to more than 50 partners, especially since the sales potential looks promising: The brand foresees annual sales of 30,000 units in the medium term, with that figure rising to over 40,000 units after 2030.
Starting in 2023, the Czech car manufacturer plans to gradually import the Karoq and Kodiaq model series from Europe, followed by the Octavia and Superb in 2024. In addition, the all-electric Enyaq iV will expand the local model range in the future. All of these vehicles will arrive fully built-up from Europe.
Škoda’s website is now also accessible to Vietnamese customers, tailored to their needs and the local market. Designed in line with the new corporate identity (CI), the clear website provides information on upcoming releases, products and planned customer events.
Škoda Auto has Group responsibility in the region
Škoda Auto already has Group responsibility in India as part of the India 2.0 project. This responsibility is set to increase significantly with the company’s entry into the Vietnamese market. The Czech carmaker has been tasked with strategically leading the Volkswagen Brand Group Volume in the ASEAN region and developing a regional strategy for these important growth markets. The aim is to establish Škoda as a strong brand at the local level and ensure profitable long-term growth in the volume segment. Given Škoda Auto’s responsibility for the global development of the current MQB A0 platform, Vietnam and the ASEAN region represent an important customer base for Škoda products utilising this platform.
