Czech automaker Skoda eyes sales in Vietnam in 2023, production in 2024

Czech automaker Skoda eyes to import vehicles from Europe for sale in Vietnam this year and then produce complete knocked down (CKD) units in 2024, the firm announced Thursday.

The move aims to drive Volkswagen Group’s growth in the ASEAN market, as part of the internationalization strategy of Skoda’s parent firm, CEO Klaus Zellmer said at Skoda's annual press conference 2023.

In particular, the automaker plans to import sport utility vehicle (SUV) Karoq and Kodiaq, sedan Octavia and Superb in 2023, and then electric SUV Enyaq iV and Enyaq coupe iV from 2025.

The firm anticipates strong increase in sale of vehicles produced in the Czech Republic and delivered to Vietnam, thanks to the removal of customs duties in line with the Europe-Vietnam Free Trade Agreement (EVFTA).

For Vietnam production, Skoda targets to assemble SUV Kushaq and sedan Slavia with parts imported from its factory in Pune, India.

In Vietnam, Skoda has already cooperated with local automaker Thanh Cong Motor Vietnam to build a production line. The facility is set to complete in the first half of 2024 and enter production in the second half.

The factory in the northern province of Quang Ninh has a target of delivering 30,000 units annually and 40,000 from 2030.

Skoda considers Vietnam the strategic gateway to ASEAN and the broader Asia-Pacific, the firm announced. “ASEAN is the fastest-growing region in the world with a projected market volume of more than 4.1 million vehicles in 2030,” said Martin Jahn, a Skoda board member for sales and marketing.

The automaker highlighted the potential of the Vietnamese market with a population of nearly 100 million, while there are only about 34 vehicles per 1,000 citizens.

On the global scale, Skoda delivered 731,300 units in 2022, while its revenues grew 18.5% year-on-year to 21.03 billion euro ($22.39 billion). The pre-tax profit dropped 42% to 628 million euro ($668.5 million).