Thaco to become new BMW distributor in Vietnam

Created 14 September 2017
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HCMC - BMW Group Asia on September 12 announced the signing of a letter of intent between BMW AG and Truong Hai Auto Corporation (Thaco) in which the latter is picked as the new importer and distributor of BMW and MINI vehicles in Vietnam, starting from January 1, 2018.

Thaco will replace Euro Auto to become the new importer and distributor of BMW and MINI vehicles in Vietnam - PHOTO: HUNG LE

BMW Group Asia will be ending its four-year partnership with Sime Darby Motors, a majority investor in the current BMW distributor in Vietnam Euro Automobiles Corp (EAC), on December 31, 2017.
“Our customers are our number one priority, and until further notice, EAC will continue to provide high quality after-sales services for all existing BMW, MINI and BMW Motorrad customers in Vietnam,” said Paul de

Courtois, managing director of BMW Group Asia.
Sime Darby Motors is the second largest BMW dealership group in the world and continues to be a key partner for BMW Group in multiple markets throughout the region, said the group in a press release.
A source from Thaco said detailed information about distribution system, import roadmap and product policy will be announced in the next few days.

There is a high possibility that Thaco will take over Euro Auto’s current distribution network and import BMW vehicles. However, it is unclear whether Thaco will import completely-built-up (CBU) BMW cars from Germany, or import assembled ones from Malaysia to enjoy a 0% import duty from early 2018.

In a visit to Germany in July, Prime Minister Nguyen Xuan Phuc suggested BMW Group find a new dealer in Vietnam because some leaders of Euro Auto had been prosecuted for smuggling in April 2017.

Many dealers have shown their desire to become BMW’s partners. However, Thaco has the biggest advantage as a 100% domestically-owned firm with many years of experience in the domestic market.
Founded in 1997, Thaco manufactures auto parts, and assembles, distributes, and retails commercial and passenger vehicles of leading brands such as Kia, Mazda, and Peugeot.

Thaco’s production base is in Chu Lai Open Economic Zone in Quang Nam Province, consisting of six assembly plants, 12 parts manufacturing plants, research and development centers, vocational college and seaport in an area of 400 hectares.

Since 2015, Thaco has held a market share of 40-42% among members of the Vietnam Automobile Manufacturers Association (VAMA).

According to some experts, through the partnership with Thaco, it is expected that BMW will build an auto assembly plant in Vietnam. 

Luxury cars like BMW are holding a small market share in Vietnam with just about 10,000 units sold a year out of the market size of over 200,000.

 

Source: Thesaigon Times

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