The local Truong Hai Auto Corporation (Thaco) has invested VND4.5 trillion (nearly US$200 million) in a manufacturing plant to produce cars for luxury European brands in the central province of Quang Nam.

The company said the plant, which is built on 7.5ha, was designed with a total capacity of 20,000 Peugeot cars per year for domestic use and export.

The plant has been equipped with modern production lines and updated automation technology to meet the luxury brand’s standards.

Thaco has been an exclusive agent for imported Peugeots since the French car giant returned to the local market in 2014. The French brand posted 60-per cent sales growth in 2016.

The local manufacturer has already opened 13 Peugeot showrooms with 3S (sales-services-spare parts) facilities across the country.

In 2016, Thaco introduced the locally manufactured Peugeot model 408 from the Thaco-Chu Lai Industrial Mechanic and Automobile Zone to boost competition in the European luxury car segment in Viet Nam.

According to a report by the Vietnam Automobile Manufacturers’ Association (VAMA), the Peugeot’s all-new 3008 and 5008 models were the top sellers among European car brands in Viet Nam in 2018. — VNS