Vietnam top auto retailer Tasco acquires Volvo distributor

Tasco Auto JSC, the self-claimed largest auto distribution network in Vietnam, has announced the full acquisition of Sweden Auto Co., the sole authorized importer and distributor of Volvo cars in Vietnam.

The acquisition of Sweden Auto Co., with four dealers in Hanoi, Ho Chi Minh City, and Danang, has expanded Tasco Auto’s network to nearly 90 showrooms across the country, Tasco Auto said in a release on Monday.

Besides Volvo, Tasco Auto also sells products manufactured by 14 auto brands, including Toyota, Ford, Hyundai, Mitsubishi, VinFast, Honda, Nissan, MG, and Suzuki. It became an authorized importer and distributor of China’s Lynk & Co late last year.

In a move to make inroads into the upstream phase of the automobile industry, Tasco Auto recently unveiled a plan to set up a completely knocked down (CKD) plant with a partner that is among the top 10 Original Equipment Manufacturers (OEMs) globally, the firm said.

At Tasco’s 2024 AGM in May, an executive shared that the firm was planning to assemble cars this year and expected to start sales next year, but did not reveal the partner.

Tasco Auto, formerly Savico Holdings, became a subsidiary of Hanoi Stock Exchange-listed builder and infrastructure developer Tasco JSC after a merger in 2022.

Sweden Auto entered Vietnam in 2019 and has made Volvo among the top three luxury brands in Vietnam, according to Tasco Auto. In 2023, it earned a pre-tax profit of VND54 billion ($2.12 million), down 83% year-on-year.

In the first five months of 2023, Sweden Auto booked a pre-tax profit of VND105 billion ($4.13 million), with car sales volume up 23% year-on-year. Volvo accounted for a 14% share of the luxury car segment in Vietnam in May, Tasco Auto added.