Škoda has officially opened for business in Vietnam under international growth plans.

A celebratory event took place with representatives of the Vietnamese and Czech governments alongside Škoda’s local distribution and production partner, TC Group

Sales of imported Karoq and Kodiaq models are now underway in collaboration with local distribution and production partner, TC Group. Vehicles are available in Hanoi at the Czech brand’s first dealership in the nation, while 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.

Škoda is planning to sell more than 40,000 units annually from 2030 and will expand its model portfolio in response to customer preferences. The Octavia and Superb models are be imported in the medium term while the Enyaq line-up will be introduced to cater to the growing demand for electric vehicles among Vietnamese consumers.

Local CKD production is planned to start in 2024 and will leverage synergies due to the country’s proximity to India.

At present, Vietnam is the fourth strongest automotive market in Southeast Asia. And with only 38 vehicles per 1,000 inhabitants in a population of roughly 100 million people and given the anticipated national economic growth, Vietnam is emerging as the country with the highest growth potential in the region, but is also the company’s strategic gateway to ASEAN and the broader Indo-Pacific region.

Klaus Zellmer, Škoda Auto CEO, said: “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.”