BMW assembly on the anvil, says Vietnam auto conglomerate
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THACO, a major player in the country’s commercial vehicle segment, plans to assemble German brand BMW cars in Vietnam. Tran Ba Duong, chairman of the Truong Hai Auto Corporation (THACO), said at a conference last week that BMW cars will be the next vehicle that THACO assembles in the country, following other brands like Peugeot, Kia and Mazda.
He did not reveal further details about when this would happen and what models would be assembled.
THACO became the sole authorized distributor of BMW in Vietnam starting January this year, after Ho Chi Minh City-based Euro Auto lost its license for smuggling 133 BMW cars in December 2016.
Duong had said earlier that he plans to open 15 BMW and MINI (a car brand owned by BMW) showrooms by early next year. However, the company currently runs only one BMW showroom in Hanoi, another in HCMC and one MINI showroom, also in HCMC.
THACO has not revealed its revenue from selling BMW cars this year, but a source told VnExpress that the company sold almost 400 vehicles in the first half of this year. Euro Auto, at its peak, sold 1,400 BMW and 400 MINI cars a year.
BMW cars were first assembled in Vietnam in 1995 by the VMC company in Hanoi. However, low sales led to the factory’s shutdown in 2005, and VMC had to spend two years selling its inventory.
Mercedes-Benz is currently the only luxury car brand that assembles its vehicles in Vietnam, and it tops domestic market sales in this segment. Industry insiders say that if BMW cars are assembled in the country again, they could emerge a strong competitor, especially in terms of price.
Questions & Answers
Q.What is THACO's current involvement with the BMW brand in Vietnam?
What is THACO's current involvement with the BMW brand in Vietnam?
THACO became the sole authorised distributor for BMW in Vietnam from January this year. It currently operates two BMW showrooms, one in Hanoi and one in Ho Chi Minh City, along with one MINI showroom in HCMC.
Q.What led to THACO taking over the distribution of BMW cars in Vietnam?
What led to THACO taking over the distribution of BMW cars in Vietnam?
THACO became the distributor after the previous licensee, Euro Auto, lost its license. This happened because Euro Auto was found to have smuggled 133 BMW cars in December 2016, leading to the change in distribution rights.
Q.When were BMW cars previously assembled in Vietnam and what was the outcome?
When were BMW cars previously assembled in Vietnam and what was the outcome?
BMW cars were first assembled in Vietnam in 1995 by the VMC company in Hanoi. However, low sales led to the factory's closure in 2005, with VMC spending two years selling off its remaining inventory.
Q.How do THACO's current BMW sales compare to the previous distributor's peak performance?
How do THACO's current BMW sales compare to the previous distributor's peak performance?
THACO sold almost 400 BMW vehicles in the first half of this year, according to a source. In contrast, the former distributor Euro Auto, at its peak, sold 1,400 BMW and 400 MINI cars annually.
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