Vietnam launch: Škoda Auto celebrates key internationalisation milestone

Chandigarh, September 25, 2023: Škoda Auto has taken an important step in its internationalisation strategy today with its entry into the Vietnamese market. A celebratory event took place with representatives of the Vietnamese and Czech governments alongside Škoda’s local distribution and production partner, TC Group. 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. Local CKD production, planned to start next year, aims to leverage synergies due to the country’s proximity to India. Škoda views Vietnam as a gateway to the promising ASEAN region.

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

Martin Jahn, Škoda Auto Board Member for Sales and Marketing, says: "Today marks an important milestone in the history of Skoda Auto. By entering the Vietnamese market, we are further strengthening our position in the global automotive industry. We have a clear strategy, ambitious targets, and a strong local partner in TC Motor. Our medium-term plan is to engage around 30 local contractual partners, assemble around 30,000 cars from CKD kits, and realise a sales potential of more over 40,000 vehicles annually beyond 2030. This move solidifies Škoda's commitment to serving our Vietnamese customers and becoming an important presence in the local market."