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ŠKODA AUTO is preparing to enter the Vietnamese market

ŠKODA AUTO continues to promote the internationalization of the company and is about to enter the Vietnamese market. In cooperation with Czech carmaker Vietnam-based Tynecom Motor Vietnam (TC Motor), he plans to offer the first European model in the country as early as 2023. It will start in 2024. The production line is currently under construction. With its dynamically growing economy and great potential in the automotive market, the country presents ideal conditions to further strengthen Skoda Auto’s position in the region. The company expects initial annual sales of 30,000 units.

“For Škoda Auto, entering the Vietnamese market is the next logical step in our internationalization strategy. In addition, our geographical proximity to India will bring great synergies.As early as 2024, we will export vehicle kits from our Pune plant in India to Vietnam, It is a major step forward for the INDIA 2.0 project, which will ultimately significantly strengthen our presence in Southeast Asia.”

Klaus Selmer, CEO of Skoda Auto

“The internationalization of our business is an integral part of the Next Level – Škoda Strategy 2030. The EVFTA free trade agreement has created very favorable economic policy conditions.We also found a strong and reliable partner, TC Motor, to gain a foothold in Vietnam.Our model portfolio is the Vietnamese people We are confident that it perfectly reflects the wishes of , and we look forward to launching it early next year.”

Martin Jahn, ŠKODA AUTO Sales and Marketing Director

Thanh Cong Motor Vietnam (TC Motor) is our partner in charge of local production and sales.

First, the KODIAQ, KAROQ, SUPERB, and OCTAVIA model series will be imported sequentially from Europe from 2023. As his ŠKODAAUTO’s local partner in the Vietnamese market, TC Motor will take over the local production and sales of the vehicle. The Hanoi-based group has more than 20 years of experience in manufacturing and selling vehicles on a contract basis and also invests in acquiring and developing industrial land such as the Viet Hung Industrial Park. In the future, Skoda models will be off the production line at a factory in Quang Ninh province.

CKD production for KUSHAQ and SLAVIA as early as 2024, ENYAQ iV family available after 2025

Construction of the TC Motor-owned production line is already underway and is expected to be completed in the first half of 2024. Assembly of the Indian-made KUSHAQ and SLAVIA model series from CKD format will begin in 2024. KUSHAQ will begin production in 2024. It will be available for order in the first half of the year, and SLAVIA orders will be available from the fourth quarter of 2024. A 16,000 square meter factory has been built in Pune to manufacture each subassembly. His all-electric ENYAQ iV family of models rounds out his portfolio locally in Vietnam from 2025 onwards.

Vehicle export from India is the next step in the INDIA 2.0 project.

By exporting vehicles from India, Skoda Auto is furthering the implementation of the India 2.0 project and underscoring India’s strategic importance in the development of the automaker. Exports of the first left-hand drive ŠKODA KUSHAQ to the Gulf countries have recently begun. ŠKODA AUTO has been leading the Volkswagen Group’s activities in the Indian market since 2019. The Group’s investment to date amounts to €1 billion, of which €250 million is allocated to research and development. In the long term, Skoda aims to achieve his 5% market share together with the Volkswagen brand, depending on market and segment developments.

Rapid expansion of dealer network in Vietnam, high sales potential

Vehicles are sold through our local partner’s regional dealer network. The first outlets are planned in Hanoi and Ho Chi Minh City. Together, these two cities account for the majority of new car sales in Vietnam. ŠKODA AUTO will then rapidly expand its dealer network to include more than 50 partners. ŠKODAAUTO forecasts annual sales potential of 30,000 units initially, and more than 40,000 from 2030. MQB-A0-Global Platform Demand for electric vehicles is increasing in major cities in the country.

Strong growing economy, highly dynamic automotive market and free trade agreements drive engagement

Also, the automotive market in the region is growing particularly dynamically, so it is worth entering Vietnam. Despite having a population of about 100 million people and currently having only about 34 cars per 1,000 inhabitants, the country is already her fourth strongest car market in Southeast Asia. At the same time, European brands could become more prominent in Vietnam as tariffs on goods from the EU are phased out by 2030. Škoda Auto therefore expects the total annual market size to increase to around 1 million units. 2030 and beyond.

sauce: Skoda ŠKODA AUTO is preparing to enter the Vietnamese market

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