French car maker Peugeot has been negotiating with a local automobile manufacturer to produce Peugeot models in Viet Nam later this year.

A source in the Truong Hai Automobile Joint-Stock Company (THACO) said the two sides plan to sign a Memorandum of Understanding (MoU) for car manufacturing in the 2017-20 period.

Under the plan, THACO will assemble Peugeot models 2008, 3008 and 508, two years after introducing them to the Vietnamese market.

THACO has been an exclusive agent for imported Peugeots since the French car giant returned to the local market in 2014, selling more than 1,200 cars since then. The French brand posted 60-per cent sales growth in 2016.

Last year, vice president of Peugeot, Dennis Martin, visited THACO’s car plants in Quang Nam Province to discuss future cooperation.

THACO has already opened eight Peugeot showrooms with 3S (sales-services-spare parts) facilities across the country and plans to increase the number to 13 by the end of this year.

The first rollout of the locally manufactured Peugeots was expected to be located in the Truong Hai-Chu Lai Auto Complex in central Quang Nam Province’s Nui Thanh District later this year.

The French car maker has also introduced scooters and bicycles to the country’s market. — VNS