Who is your new business partner and why did you choose them?
Thanh Cong Motor Vietnam (TC Motor) is one of the largest and most financially stable companies on the Vietnamese market. It is headquartered in Hanoi and has an extensive portfolio of businesses, including automotive, residential and office property projects, hotel complexes and industrial estates. Škoda chose to partner with TC Motor because of its strong market position, active investment in industrial zones and ability to contribute to the economic development of the entire region. For example, TC Motor owns Viet Hung Industrial Park, where Skoda Auto plans to locate its production, and has all the necessary infrastructure to implement the carmaker’s investment plans.
Škoda dealership in Vietnam
Where will the business partner operate and what is distinctive about this locality?
TC Motor operates in Quang Ninh Province, where Viet Hung Industrial Park is located. This industrial estate is strategically located and has access to a well-developed motorway network, a large-capacity sea and river port and abundant road infrastructure.
What form will the cooperation take?
Local production of Škoda vehicles will take place under a production agreement. TC Motor will become the importer and distributor of Škoda vehicles under a global contract. It will represent the Škoda brand throughout the Vietnamese market, manage the development, standards and quality of the dealer network, and invest in building brand awareness and boosting the brand’s image. Another important part of the cooperation will be offering servicing and after-sales services to customers.
What will the dealer network look like?
The Škoda dealer network in Vietnam will be based on a pre-defined business model. It will be similar to the European model with independent dealers who have access to support, training and know-how from the carmaker. The aim is to rapidly expand the network and cover the needs of customers throughout Vietnam, gain a significant share of the Vietnamese market and become a leading brand in the automotive industry.
What are the investments involved?
Škoda and Škoda Volkswagen India Private Limited (ŠAVWIPL) are investing in the project in Vietnam, mainly in development and production. Other significant investments are due from local partner TC Motor.
Škoda Vietnam became a reality.
Who is the biggest competitor in the local market?
The biggest competitors on the Vietnamese market are Japanese and Korean car brands, which already have a strong position and a well-developed dealer network.
How many cars does Škoda plan to sell in Vietnam?
Škoda Auto expects annual sales of 30,000 cars in the medium term and deliveries are expected to rise to more than 40,000 cars after 2030.