Japan’s Mitsui & Company Ltd has made a strategic investment in Tasco Auto Ltd, a leading Vietnamese vehicle distributor and dealer known until the end of last year as SVC Holdings Ltd.
The Japanese trading house, which has a presence in more than 60 countries in a broad range of industries, is looking to increase its exposure to an expected rebound in the Vietnamese vehicle market from currently depressed levels – following more eighteen months of sharp declines.
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The value of the deal, which was made at the end of July, and the stake acquired were not disclosed. Mitsui is expected to support Tasco Auto’s ambitious expansion plans in the country’s automotive sector.
Tasco Auto said in a statement: “Through this partnership, Tasco Auto will have exposure to the world-class operational and management standards and to the worldwide network of its partner”, adding that Mitsui will bring “advanced technological solutions and its valued consultancy to enhance efficiency, improve governance structure and streamline its operations”.
Tasco Auto has close to 90 sales outlets in Vietnam, selling leading brands including Ford, Mitsubishi, Nissan and Volvo. It recently became the local distributor for Lynk & Co, a subsidiary of China’s Geely Auto, through its GreenLynk Automotives subsidiary.
Local reports suggest Tasco Auto plans to build a new vehicle assembly plant in partnership with an unnamed global automaker.
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By GlobalDataTasco Auto also has a stake in local used car trading platform Carpla, which operates 6 auto malls across the country, and owns Saigon General Service Corporation (Savico) – a major local automotive manufacturing and trading company.
