Marketing Random

How THACO leads the Vietnamese auto industry


In the early days of 2018, Thaco officially introduced the BMW and MINI brands as well as became the enterprise holding the most car brands in Vietnam.

Through owning these two brands, experts believe that in the coming time, Thaco will continue to be a leading company in the Vietnamese auto industry, in terms of investment scale in terms of land, capital, and technology. , cooperation, number of brands held, automobile segment, product consumption, number of employees …

The strategy of “following” the market + Investment type “all hands”

Looking back at the “start-ups” businesses at the same time as Thaco, including “powerful” state-owned enterprises, even once monopolies such as Vinamotor, Samco … and a series of private enterprises such as Vinaxuki, T&T Thaco so far has made miraculous progress. The question is why in an environment, conditions are the same, but the success is completely different. There are even businesses with much better conditions that are being blurred and almost disappearing. The strategy of “following” the market + big and all-round investment has helped Thaco build a solid foundation for future development.

After the historic turning point of investment in Chu Lai, Thaco has constantly grown thanks to its strategy of continuing to invest, encroach on and acquire the brand name.

In fact, the investment “all hands” in 2002 with more than 600 billion for an automobile assembly plant with an area of ​​36.8 hectares, a capacity of 25,000 vehicles / year in Chu Lai Open Economic Zone is considered a “turning point. history “creating a THACO leading the automobile industry and being one of the 10 largest private enterprises in Vietnam today (According to the latest report of VNR500 in 2017).

But before this investment, Truong Hai had a strategy that they called “follow” the market very well. When it was first established in 1997 with a small scale, Thaco as well as many other businesses at that time chose to import used cars to refurbish and sell them to the market in combination with supplying spare parts. spare. In fact, at that time, if you want to work in the automotive sector and especially private car, there is no other option.

Thaco’s difference with many businesses lies in its professionalism and quality with a system of care, warranty, maintenance and maintenance available whenever customers need it, even the slightest failure. That, helping Thaco – say as President Thaco Tran Ba ​​Duong in a meeting is “getting a bunch”. But get a bunch of it for what? Investment, investment and investment and perhaps two investment words that have always been throughout Thaco’s 20-year journey: Only investment and investment are continuous, non-stop.

In 2017, Thaco sold a total of 89,602 cars and still holds 35.8% of the market share of Vietnamese cars, ranking No. 1.

In 2001, it was invested in a joint venture to establish Tracimexco – Truong Hai automobile production and assembly company with the main product of light trucks bearing KIA brand name – a product in the That point has very high demand, especially in cities, towns and townships. The main choice of investment “follow” the market demand is there. Thanks to that success, the largest KIA truck assembly plant in Vietnam at that time was born.

Use the brand “feed” the brand

After the historic turning point of investment in Chu Lai, Thaco is constantly growing thanks to the strategy of continuing to invest, encroach on and acquire the brand, or say as an expert in this field is to take the brand “cultivate” the brand. brand. This is also the most obvious difference of Thaco compared to dozens of other auto companies in Vietnam.

Starting from KIA trucks, Thaco has also invested in passenger cars, buses and a variety of other trucks, and has been leading the market in commercial vehicles for decades.

On the basis of the success of commercial vehicles and passenger cars KIA, Thaco acquired the Mazda brand, which is considered to have a higher class segment than KIA with the establishment of Vina Mazda factory with an investment of more than 20 million USD. .

Initially, Mazda was not really successful at first, but in return, the KIA tourist car had a remarkable growth. When the KIA passenger car declined, Mazda cars were again on the throne. Saying the brand “feed” the brand is there.

Similarly, after the great success of Mazda, in 2013, Thaco co-produced and assembled Peugeot – one of the oldest and most famous auto brands in Europe. It can be said that until this point, the number of Peugeot cars sold is not much, not as expected, however, many experts affirm that in the long term, Peugeot models are expected to make a breakthrough. The profitability of the Peugeot models has not been said, but if there is a loss, it is not too much to worry because there is offset from the commercial vehicle segment, from the efficiency of KIA, of Mazda and that is The good thing about Thaco, said a senior expert in the auto market.

Before cooperating with BMW and MINI, Thaco, after abandoning Hyundai trucks, acquired Fuso – a famous high-end truck brand. This is considered the sixth piece to create a current Thaco. Although these brands do not have an equal growth in quantity, in fact, they have very well complemented each other. And along with the production and assembly lines of commercial trucks, passengers, buses, specialized, dozens of factories, joint ventures producing spare parts, improving the localization rate for domestic service and Export continues to contribute to asserting the leading position in the Vietnamese automobile industry.

Up to the present time, many people still cannot believe that an automobile company in Vietnam “holds” 6 most famous car brands in the world. But Thaco has done it. And with the ambition to reach out to the region and the world with a series of in-depth investment projects, this business will not only stop at the leading position in Vietnam but also in the region. Let’s believe and wait.

Linh Anh
* Source: Business Forum

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