According to the brand from Mladá Boleslav, Vietnam is a rapidly developing country where the number of cars on the roads is starting to catch up with mopeds. Therefore, he sees huge potential in the country, which is considered the gateway to Southeast Asia.
Currently, the number of vehicles per thousand inhabitants in Vietnam is relatively small compared to other countries, but the number is growing rapidly. Sales of new passenger cars are also increasing: now there are more than three hundred and fifty thousand vehicles sold per year, while it was not so long ago that it was one hundred thousand.
Daniel Vošvrda, project coordinator of strategic management for new markets at Škoda Auto, adds other arguments for choosing Vietnam: “There were several reasons: good relations between the two countries and their interconnectedness, a strong Vietnamese community in the Czech Republic, the developing automotive industry in Vietnam, a qualified workforce or the fact that local companies are not afraid to invest and cooperate.”
In the medium term, Škoda Auto expects annual sales of 30,000 cars, and after 2030 deliveries are to increase to more than 40,000 cars. The biggest competitors of the Mladá Boleslav company are Japanese and Korean car brands, which already have a strong position and a well-developed dealer network.
Of course, Škoda is also planning to develop its dealer network. “The goal is up to twenty dealerships in 2025 and up to thirty sales points by 2028,” says Martin Jahn, member of the Škoda Auto board of directors responsible for sales and marketing.
In connection with entering the Vietnamese market, Škoda wants to use synergies with the India 2.0 project, within which models of several brands of the Volkswagen group are being created under the leadership of the Škoda brand. Both countries have similar requirements for cars, and the legislation in Vietnam supports the import of so-called CKD (Completely Knocked Down), i.e. completely disassembled cars, and their local assembly.
Photo: Škoda Auto
Representation of the Škoda brand in Vietnam.
This year, the Karoq and Kodiaq models will be imported from Europe, and next year will bring the import of the already mentioned CKD vehicles from India and the start of production directly in Vietnam, in a plant that is now growing in Quang Ninh province. Kushaq and Slavia cars are now manufactured in India. In the future, an electric model and a car with a combustion engine under four meters in length should be added to them.
Škoda wants to use the capacity of the Vietnamese plant under construction of the local partner TC Group for export to other Southeast Asian countries. In addition, Škoda was put in charge of coordinating other brands of the Volkswagen Group in this territory.
Massage chairs at sellers and not wanting to wait
So what awaits Škoda in Vietnam? Especially customers with specific requirements who, for example, reportedly prefer personal contact with salespeople. Car dealers operate car showrooms on the outskirts of cities, but they have smaller branches in the center, for example in large shopping centers – as close as possible to potential clients.
It is in these smaller branches that the customer can arrange a test drive, which then takes place in the dealership itself. Choosing a car takes a long time, it also includes a detailed inspection of the car under consideration.
Therefore, not only refreshments are available at the seller, but also massage chairs. The customer usually wants a car immediately, so he chooses from the cars that the seller has in stock. These are also situations that Škoda Auto must prepare for.
Photo: Škoda Auto
Transportation of Škoda cars to Vietnam.
Drivers in Vietnam are very interested in equipment such as air conditioning, electrically adjustable seats, leather upholstery or disc brakes. According to the Czech automaker, design plays a big role and a lot of attention is paid to connectivity and connection with mobile phones.
The cars must also be prepared for the specific conditions on the roads there. Traffic in cities is very dense and traffic jams are the order of the day. In addition, the ubiquitous mopeds and pedestrians, who have to show a particularly high degree of courage to go into the mud. Considering all this, road traffic is somewhat slower. This also applies on the highway, where the local limit is 120 km/h, but you usually drive slower.
Photo: Škoda Auto
Škoda Auto has therefore adapted its vehicles to local conditions and safety standards. “For example, safety for motorcyclists is also evaluated,” says Daniel Vošvrda, project coordinator of strategic management for new markets.
Models for the Vietnamese market are equipped with functions such as lane keeping or medium range radar, among others.
2023-09-28 16:00:40
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