Thaco aims to roll out Vietnam’s first home‑made car brand by 2027, tackling falling foreign sales and meeting local demand. Discover the strategy now.
In a bold New Year message, Thaco Chairman Trần Bá Dương announced that the conglomerate will introduce its own domestic passenger‑car brand in 2027. If the plan materialises, Vietnam could see only the second home‑grown automaker on the market after VinFast.
Why Thaco Wants Its Own Brand
For years Thaco has built a reputation as a reliable local assembler and distributor for foreign marques such as Kia, Mazda, Peugeot, BMW and MINI. While this model has generated stable revenue, recent sales data reveal a gradual decline in the performance of these overseas brands within Vietnam.
According to the Vietnam Automobile Manufacturers Association (VAMA), Kia held an 8.7% share of the market in 2022, Mazda 10.4%, and Peugeot a modest 0.8%. Together, the foreign models that Thaco assembles account for roughly 20% of Vietnam’s total passenger‑car market – a respectable figure, but one that is plateauing.
Stagnating Sales of Assembled Imports
After a pandemic‑induced slowdown, Kia and Mazda rebounded in 2022 with 60,729 and 36,052 units respectively. However, both brands have been losing ground each year since then: Kia’s 2025 volume fell to 27,176 units, while Mazda sold 32,455 units.
The decline is especially evident in key models. The Mazda CX‑5 still leads the C‑segment SUV market, but it is increasingly shouldering the entire brand’s sales in Vietnam. Kia’s lineup – the Morning, K3 and Seltos – has struggled to stay competitive as prices rose and newer rivals entered the market.
Limitations of the Current Portfolio
Even high‑profile introductions such as the Mazda CX‑90 and MX‑5 Miata have attracted interest, yet they have not sparked a sales explosion. The recent acquisition of Jeep and RAM adds niche, higher‑priced vehicles to Thaco’s portfolio, but these models target a limited customer base and cannot serve as a volume driver.
Moreover, Thaco’s dependence on foreign OEM strategies makes it vulnerable to each partner’s strategic shifts. For example, a price increase on the Kia Sonet – from VND 519‑574 million to VND 539‑624 million – slowed its once‑strong sales, while Mazda’s move toward a premium brand image could further erode its mass‑market appeal.
Learning from VinFast’s Rapid Rise
VinFast, launched in 2017, provides a clear case study. Starting with three gasoline models, the brand quickly captured the top spot in 2021 with the Fadil, beating entrenched rivals like Toyota Vios and Hyundai Accent. By pivoting to an all‑electric lineup covering almost every SUV and MPV segment, VinFast has reshaped consumer expectations and taken market share from many foreign brands that Thaco distributes.
The success illustrates how a deep understanding of local taste, aggressive pricing and a focused product strategy can outmaneuver established importers.
Thaco’s Strategic Rationale
Creating a domestic brand allows Thaco to control product development from the ground up, tailoring design, features and price points specifically for Vietnamese buyers. It also reduces reliance on the strategic decisions of overseas partners, which have proved increasingly unpredictable.
A home‑grown marque can act as a “sales catalyst” – a fresh offering that revitalises dealer networks, attracts new financing partnerships and potentially unlocks higher profit margins, especially if the vehicles are produced locally with cost‑effective components.
What the 2027 Launch Could Look Like
- Market Positioning: A value‑oriented compact SUV or sedan aimed at first‑time buyers and small‑business owners.
- Production Base: Leveraging Thaco’s existing Trường Hải plant in Ho Chi Minh City, with possible expansion for electric‑vehicle (EV) lines.
- Pricing Strategy: Competitive pricing under VND 300 million to undercut imported rivals while offering locally‑relevant features.
- Brand Identity: Emphasising “Made in Vietnam” pride, safety, and fuel efficiency.
Challenges Ahead
While the opportunity is clear, Thaco faces several hurdles:
- Securing a reliable supply chain for parts that meet both cost and quality standards.
- Building a distinct brand identity that can stand apart from the imported names on dealer lots.
- Meeting rising consumer expectations for technology and after‑sales service.
- Competing with VinFast’s growing EV ecosystem, which may shift consumer preferences away from conventional gasoline models.
Future articles will dive deeper into these challenges and explore how Thaco plans to address them.
In short, Thaco’s decision to launch a Vietnamese‑made passenger‑car brand stems from a mixture of declining foreign‑model sales, the desire for greater strategic autonomy, and the inspiration drawn from VinFast’s meteoric growth. If executed well, the 2027 debut could represent a pivotal moment for Vietnam’s automotive landscape.