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With the recent acquisition of 100% of Sweden Auto – the sole importer and authorized distributor of Volvo cars in Vietnam, Tasco Auto is poised to solidify its position as the largest automobile distributor in the country.
Currently, Tasco Auto boasts a network of nearly 90 automobile showrooms nationwide and handles the distribution of a total of 14 different automobile brands. The speed and aggressiveness with which Tasco has entered the automobile business are remarkable.
Large Market Share, Contributing Significantly to Revenue
In September 2023, Tasco Joint Stock Company announced the successful acquisition of 100% of SVC Holdings. At that time, SVC Holdings owned 54.1% of the capital of Saigon General Service Joint Stock Company (Savico). Savico was also known as one of the leading automobile distributors in Vietnam, handling the distribution of various car brands to Vietnamese customers, including Toyota, Ford, Mitsubishi Motors, Hyundai, Suzuki, VinFast, and Volvo.
According to SVC Holdings’ announcement at that time, Savico’s sales volume in 2022 was more than 42,800 vehicles, equivalent to 8.4% of the national automobile market share and about 11.2% of the new car market share.
The move to acquire SVC Holdings and gain access to Savico’s large customer base indicates Tasco’s shift towards the automobile business, moving away from its reputation as the “BOT king” due to its expertise in infrastructure development.
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Savico is one of the largest automobile distributors in the Vietnamese market. Image source: Savico. |
Earlier this year, Tasco renamed SVC Holdings as Tasco Auto and updated its branding to align with the parent company, Tasco, and its subsidiaries. According to Tasco, the automobile business of Tasco Auto achieved sales of 36,637 units across all showrooms in the system in 2023, a 14% decrease compared to the same period last year.
The total revenue from the sale of goods and services of the parent company, Tasco, in the last year reached nearly VND 11,000 billion. Of this, Tasco Auto contributed more than VND 9,700 billion in revenue, meaning that Tasco Auto alone accounted for more than 88%.
For comparison, the revenue from toll collection activities of the subsidiary companies, including VETC Joint Stock Company and Tasco BOT Limited Company, in 2023 was approximately VND 1,071 billion.
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Tasco is known as the “BOT king” in Vietnam. Image source: Quang Thắng. |
In the first quarter of this year, Tasco reported total sales revenue of VND 4,811 billion. The toll collection segment brought in over VND 305 billion in revenue for the parent company, while the service segment generated VND 13 billion in revenue in Q1/2024.
At the 2024 Annual General Meeting of Shareholders, Tasco set a target of VND 23,300 billion in revenue for the automobile business. The company also set a total revenue target of VND 24,750 billion for 2024, with after-tax profit expected to reach VND 660 billion.
Tasco’s Ambition
In 2022, Mr. Ho Viet Ha, former Chairman of Tasco, shared that the reason for investing in SVC Holdings was to make the automobile distribution segment the largest pillar of Tasco in the future. In an effort to realize this ambition, after the merger with the parent company in September 2023, Tasco Auto quickly introduced Lynk & Co cars to Vietnamese customers at the end of last year.
The Lynk & Co brand is relatively small compared to Tasco’s ambition, considering the sales volume from other brands distributed by Tasco. That is why Tasco continues to seek larger and stronger partners.
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The Lynk & Co showroom in Ho Chi Minh City was inaugurated at the beginning of the year. Image source: Tasco. |
Tasco had partnered with BYD Vietnam through New Energy Holdings to distribute BYD electric vehicles to domestic customers. However, in early May, both New Energy Holdings and BYD Vietnam confirmed that they had stopped cooperating to open BYD dealerships in Vietnam.
Volvo is the next official brand that Tasco aims to acquire in Vietnam. Prior to this, through the acquisition of SVC Holdings, Tasco had become the distributor of the luxury car brand Volvo in the Vietnamese market by owning 80% of Nordic Auto Joint Stock Company. Tasco stated that as of the end of May, Volvo held about 14% of the luxury car market share in Vietnam.
On July 8, Tasco announced its acquisition of 100% of Sweden Auto, the sole importer and authorized distributor of Volvo cars in Vietnam. Before being acquired by Tasco, Sweden Auto had a retail network of luxury Volvo cars with a total of 4 dealerships in Hanoi, Da Nang, and Ho Chi Minh City.
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The Ultimate Automotive Experience: Volvo Finds a New Home with Tasco in Vietnam
“Tasco Auto is the sole and exclusive authorized importer and distributor of Volvo cars in Vietnam. With this prestigious distinction, we are proud to bring the renowned Swedish automotive engineering and design to the vibrant Vietnamese market.”
Mitsui & Co. Becomes Tasco Auto’s Strategic Investor
Mitsui & Co. – a leading Japanese trading and investment company with a global presence in 60 countries – has officially become a strategic shareholder of Tasco Auto.
“Japanese Conglomerate Becomes Strategic Shareholder in Volvo and Lynk & Co.’s Vietnam Distributor.”
The Japanese trading and investment giant, Mitsui & Co., has officially become a strategic shareholder of Tasco Auto, a subsidiary of the Tasco Group.
“Tasco Acquires Sweden Auto, Becoming the Authorized Distributor of Volvo in Vietnam”
“In a strategic move, Tasco Auto Joint Stock Company has acquired Sweden Auto Limited – the sole authorized importer and distributor of Volvo cars in Vietnam. This takeover signals a significant shift in the automotive landscape in the country, as Tasco Auto expands its footprint and strengthens its position in the premium car market.”
