Tasco Auto, the exclusive distributor of Volvo in Vietnam, is expanding its operations into vehicle manufacturing after acquiring a stake in Vinh Phat Motors (VM Motors), a company involved in the assembly of electric trucks and vans. The two companies are targeting their first batch of electric vehicles in 2027.

The transaction expands Tasco Auto's role in Vietnam's automotive value chain beyond vehicle distribution and after-sales services to manufacturing and assembly. The partnership will focus on commercial vehicles, including conventional trucks and vans, as well as battery-electric and other new-energy models.

Following the investment, Tasco Auto plans to support VM Motors in market development and distribution by leveraging its existing automotive operations, including vehicle distribution, after-sales services, infrastructure, insurance and financing. Tasco Auto operates around 150 showrooms nationwide.

The two companies will also collaborate on the development of a dedicated brand for new-energy commercial vehicles. The brand name, first model and planned production scale have yet to be announced.

First EV batch targeted for 2027

Following Tasco Auto's investment, VM Motors plans to upgrade its factory for electric vehicle production and assembly. The planned investment includes equipment and capabilities for assembling and testing battery systems and electric powertrains, as well as high-voltage electrical safety systems. Technical staff will also receive training in electric vehicle production and maintenance.

Under the current plan, Tasco Auto and VM Motors aim to launch their first batch of electric vehicles in 2027. Founded in 2015, VM Motors operates a factory in the Ho Chi Minh City Automotive-Mechanical Industrial Park, where production began in 2017. The company received a technology transfer from Isuzu Qingling Group, a China-Japan joint venture, to assemble trucks from standardised completely knocked-down (CKD) components.

VM Motors' existing line-up includes the NK Series light trucks and GINGA Series heavy-duty trucks. The company states that these vehicles are covered by warranty policies based on Isuzu standards. VM Motors has also entered the electric commercial vehicle segment. The company previously introduced an all-electric van imported from Dongfeng and supplied it to a logistics company for express delivery services.

The investment therefore provides Tasco Auto with an entry into local vehicle manufacturing while enabling VM Motors to expand its existing commercial vehicle operations into battery-electric and other new-energy models.

Tasco Auto's automotive operations

Tasco Auto, a subsidiary of Tasco Group, currently distributes vehicles from several brands in Vietnam, including Volvo, Lynk & Co and Geely. In 2025, the company sold approximately 37,000 vehicles, accounting for more than 14% of Vietnam's total automotive market, according to the Vietnam Automobile Manufacturers' Association (VAMA).

In the first half of the year, Tasco Auto reported a net profit of VND 31.2 billion (US$ 1.2 million), six times higher than in the same period of the previous year. However, as of June 30th, the company had accumulated losses of nearly VND 2,100 billion, while its financial debt stood at more than VND 8,000 billion.

VM Motors ownership

According to information from the National Business Registration Portal, VM Motors had charter capital of VND 200 billion as of May 17th, 2022. Former General Director Tran Vinh Ha held 66.3% of the company's capital, while Ms Nguyen Thi Thanh Nga, who has been the company's legal representative since 2025, held the remaining shares.

With Tasco Auto's investment, the two companies are now preparing to expand VM Motors' manufacturing capabilities, with electric commercial vehicles forming part of their planned production activities and the first batch of products targeted for 2027.