Tasco buys 100% stake in sole Volvo distributor
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Tasco Auto, a subsidiary of auto distributor Tasco, has bought out Sweden Auto, the sole distributor of Volvo cars in Vietnam.
The deal made Tasco the importer and distributor of the Chinese-owned Swedish luxury brand, and it has since increased its number of showrooms by four to almost 90, maintaining its position as the biggest auto distributor in the country, the company said in a statement.
Sweden Auto started distributing Volvo cars five years ago and reported pre-tax profits of VND54 billion ($2.1 million) last year, but the figure jumped to VND105 billion in the first five months this year thanks to a double-digit surge in sales.
In May Volvo accounted for 14% of Vietnam’s luxury car market, Tasco said.
The distributor of 15 auto brands last month announced that it would branch into car assembling and launch its first products next year.
Tasco Auto chairman Pham Van Dung said at the time the company wanted to work with a global top 10 auto producer.
Questions & Answers
Q.What was Sweden Auto's financial performance before being acquired by Tasco?
What was Sweden Auto's financial performance before being acquired by Tasco?
Last year, Sweden Auto reported pre-tax profits of VND54 billion, which is equivalent to $2.1 million. This figure significantly increased to VND105 billion in the first five months of the current year due to a substantial rise in sales.
Q.How has Tasco's showroom network expanded following the acquisition of Sweden Auto?
How has Tasco's showroom network expanded following the acquisition of Sweden Auto?
After acquiring Sweden Auto, Tasco increased its number of showrooms by four. The company now operates almost 90 showrooms across the country, maintaining its status as Vietnam's largest auto distributor.
Q.What is Tasco's broader strategic plan beyond car distribution in the near future?
What is Tasco's broader strategic plan beyond car distribution in the near future?
Tasco plans to diversify into car assembling and aims to launch its initial products next year. The company's chairman expressed a desire to collaborate with a global top 10 auto manufacturer for this new venture.
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