|
A Volvo car dealership. Source: Tasco Auto
|
Following Lynk & Co, Tasco Auto has added another luxury car brand, Volvo, to its portfolio as an official importer.
Through Sweden Auto, Volvo’s sales volume grew by 23% in the first five months of 2024 compared to the same period last year, resulting in a pre-tax profit of 105 billion VND, nearly doubling the profit of 2023.
Volvo’s market share continued to grow, accounting for 14% of the luxury car segment in May 2024. The brand has achieved a compound growth rate of 164% in the past six years. Currently, Sweden Auto boasts a retail network of four dealerships in Hanoi, Ho Chi Minh City, and Danang.
In 2022, Sweden Auto recorded a pre-tax profit of 335 billion VND. However, the automotive market faced challenges in 2023, leading to a decline in business performance, with profits falling to 54 billion VND.
As the parent company of Saigon General Service Joint Stock Company (Savico, HOSE: SVC), which operates nearly 90 showrooms nationwide, Tasco Auto’s acquisition of Sweden Auto further solidifies its position as Vietnam’s largest automobile distributor.
Previously, through GreenLynk, Tasco Auto became the official importer of Lynk & Co, a Nordic car brand owned by China’s Geely Group since 2010.
Established in April 2016 in District 1, Ho Chi Minh City, with an initial capital of 2 billion VND, Sweden Auto’s primary business is wholesale trading of automobiles and other motor vehicles. The initial contributors were Mr. Vo Minh Luc and Mr. Nguyen Tang Vinh, each holding 50% of the capital. Mr. Luc served as the company’s General Director and legal representative.
In September of the same year, Mr. Vinh took over as General Director and increased his capital contribution to 1.5 billion VND, while Ms. Nguyen Thi Yen contributed 500 million VND, replacing Mr. Luc. In 2018, Sweden Auto’s charter capital increased to 5 billion VND, with Ms. Yen holding 40% and Mr. Vinh holding 60%. Approximately two years later, the capital was raised to 50 billion VND, with the contribution ratio of these two individuals remaining unchanged.
In early 2021, Ms. Luu Bao Huong took over as General Director and legal representative, replacing Ms. Yen’s capital contribution. The company’s headquarters was also relocated to Binh Thanh District.
|
Ms. Luu Bao Huong – General Director of Volvo Car Vietnam
|
The leadership of Tasco Joint Stock Company (HNX: HUT) – Tasco Auto’s parent company – recently shared plans to venture upstream with a CKD automobile assembly plant project in collaboration with a top-10 global OEM manufacturer.
Commenting on the outlook for 2024, HUT‘s Chairman, Mr. Vu Dinh Do, acknowledged the challenges in the automotive industry as temporary, highlighting the sector’s long-term potential. He emphasized the need to prepare resources for investments in expanding the scale, increasing the number of showrooms, and introducing new car brands to meet future demands.
However, the management also conceded that the profit margins in the automobile distribution industry are relatively low, with a pre-tax profit margin of approximately 2%, presenting a challenge for the company.
Top seller of Volvo in Vietnam for 7 consecutive years: ‘Taking care of existing customers to generate new orders, reaching out to Gen Z requires tricks’
Having experienced the ups and downs of the market, Nguyen Ngoc Quyet consistently achieves the highest sales figures at Volvo. According to him, the key to success lies in hard work and market acumen.
New sedan model from Chinese car manufacturer hits the Vietnamese market: Goes 102 km without charging, rivals Toyota Camry
The car is equipped with both petrol and electric engines, with an electric operating range of up to 102 km.
I paused, attended Volvo’s first exhibition in Vietnam: Turns out, enough is successfully satisfying
For the first time ever, Volvo has set up its own exhibition in Vietnam, where the Swedish car manufacturer expresses its gratitude to customers for 8 years of success and subtly conveys messages of a game-changing year 2024 in terms of “energy regeneration”.
Volvo introduces S90 Recharge in Vietnam, the “fuel-sipping” car model priced at nearly 3 billion VND.
The Volvo S90 Recharge utilizes a plug-in hybrid powertrain with an impressive fuel consumption of 1.4 liters/100 km. This figure is even lower than many motorcycle models in Vietnam.
The Ambitious Ecosystem of Tasco, the Master of Car Services
With the successful acquisition of SVC Holdings and the rebranding as Tasco Auto, Tasco has added a vital piece to its puzzle in striving to perfect the ecosystem centered around automotive distribution and services.
