On July 8, Tasco Auto JSC announced its acquisition of 100% of Sweden Auto Co. Ltd. – the sole authorized importer and distributor of Volvo cars in Vietnam. With this move, Tasco Auto now boasts a retail network of 4 Volvo dealerships across Hanoi, Ho Chi Minh City, and Danang. Coupled with their existing network of nearly 90 showrooms nationwide, the addition of Sweden Auto solidifies Tasco Auto’s position as Vietnam’s largest automobile distributor.
Even before taking control of Sweden Auto, the Tasco Auto system already included businesses operating showrooms for Volvo cars in Vietnam, such as Bac Au Motor JSC and Bac Au Hanoi Co. Ltd.
Beyond distribution, Tasco Auto has also reaffirmed its long-term investment strategy in the automotive industry by continuing to develop an integrated vertical business model. The company has established itself as the official importer of premium car brands, including Volvo (through Sweden Auto) and Lynk & Co (through GreenLynk). Tasco Auto has also recently shared plans to venture upstream with an automobile assembly plant project (CKD) in collaboration with a partner ranked among the top 10 global OEM manufacturers.
A Volvo showroom in Vietnam.
Sweden Auto, which entered the Vietnamese market 5 years ago, has since risen to become one of the top 3 luxury car brands in the country. In 2022, the company posted impressive results with a pre-tax profit of VND 335 billion. However, like many in the automotive industry, Sweden Auto faced challenges in 2023, resulting in a dip in performance and a pre-tax profit of VND 54 billion for the year.
Fortunately, the company has experienced a strong recovery in the first five months of 2024, with a pre-tax profit of VND 105 billion, nearly doubling its full-year 2023 results. Vehicle sales volume during this period grew by 23% year-on-year, and Volvo’s market share continued to expand, capturing 14% of the luxury car segment in May 2024.
