Daimler Buses is expanding its business in south east Asia and will start selling Mercedes-Benz chassis in Vietnam.

It is teaming up with Truong Hai Auto Corporation (THACO) which has been the general distributor for the bus division in Vietnam since 1 June.

A collaboration contract was signed recently.   

Buses sold in Vietnam will be adapted to local conditions and built on chassis from the Sao Bernardo do Campo plant in Brazil.

The plant will supply KD chassis kits from the second half of 2020 and THACO will assemble and body the chassis in the Chu Lai Truong Hai Automobile Mechanical Industrial Zone for distribution through their own sales network.

Chassis will be offered with 260kW and 315kW versions of the Mercedes-Benz OM 457 engine. 

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Till Oberwoerder, head of Daimler Buses and managing director of EvoBus, said: “The market entry with our Mercedes-Benz buses in Vietnam is an important step for us in terms of further expanding our global market presence and using as best as possible the growth opportunities which the Asian bus markets offer.

“THACO… is already well established on the market and which will be a highly competent partner for us.”

Daimler Buses entered Taiwan in 2018 with heavy touring coach chassis, also from Brazil. The buses are also sold in Indonesia while the biggest fleet of Citaro urban buses worldwide operates in Singapore. 

Buses are an important means of transport in Vietnam and the market is good for about 3,500 units a year, making it bigger than Spain or Italy.

Potential customers include private companies operating regular-service and charter routes across Vietnam.

Truong Hai Auto Corporation is based in Ho Chi Minh City and employs 20,000 people.

It is the biggest automotive manufacturer in Vietnam with components, assembly, logistics, sales and aftersales operations.

Product range includes various types of trucks, buses, special purpose vehicles, and passenger cars.

THACO already assembles and sells Daimler’s Fuso brand.