Volvo distributor acquires stake in VM Motors, targets EV assembly in Vietnam from 2027
Tasco Auto, the exclusive distributor of Volvo in Vietnam, is moving deeper into vehicle manufacturing after acquiring a stake in Vinh Phat Motors (VM Motors), with the two companies targeting their first batch of electric vehicles in 2027.
Tasco Auto acquires a stake in VM Motors. Photo: VM Motors
The deal marks another step in Tasco Auto’s expansion beyond vehicle distribution and services into manufacturing and assembly, with commercial electric vehicles set to be a key focus.
Following the investment, Tasco Auto plans to help VM Motors develop its market while tapping its wider automotive ecosystem, including distribution, after-sales services, infrastructure, insurance, and financing.
The partnership will focus on commercial vehicles, ranging from conventional trucks and vans to battery-electric and other new-energy models.
First EV batch targeted for 2027
With Tasco Auto coming on board, VM Motors plans to upgrade its factory for electric vehicle production and assembly.
Planned investments include equipment and capabilities for assembling and testing battery systems, electric drivetrains, and high-voltage safety systems. Technical staff will also receive training for EV production and maintenance.
Under the current plan, Tasco Auto and VM Motors aim to roll out their first batch of electric vehicles in 2027.
The two companies are also studying the launch of a dedicated brand for new-energy commercial vehicles, although its name, first model, and production scale have yet to be announced.
The investment gives Tasco Auto a broader foothold in Vietnam’s automotive value chain, taking the company from vehicle distribution and services further into manufacturing, with electric commercial vehicles emerging as a new growth area.
Founded in 2015, VM Motors operates a factory in the Ho Chi Minh City Automotive-Mechanical Industrial Park. The plant began operations in 2017.
The company received technology transferred from Isuzu Qingling to assemble trucks from complete knocked-down kits. Its lineup includes the NK Series light trucks and GINGA Series heavy-duty trucks, which VM Motors says are covered by warranty policies based on Isuzu standards.
VM Motors has also made early moves into electric commercial vehicles.
It previously introduced an all-electric van imported from Dongfeng and supplied it to a logistics company for express delivery services.
Tasco Auto, a subsidiary of Tasco Group, currently distributes vehicles from several brands, including Volvo, Lynk & Co, and Geely, in Vietnam.
In 2025, the company sold around 37,000 vehicles, accounting for more than 14 percent of the country’s total auto market, according to the Vietnam Automobile Manufacturers’ Association (VAMA).
Ngoc Nguyen - Minh Son / Tuoi Tre News
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