Hyundai Motor will accelerate its penetration of the Vietnamese automobile market by establishing a sales joint venture with its local partner.
The company announced on Jan. 24 that it signed an MOU on the establishment of a sales joint venture with Vietnam's Thanh Cong Group at its head office in Yangjae-dong, Seoul on Jan. 23.
Thanh Cong Group is a large company with 23 affiliates. It has been selling Hyundai vehicles in Vietnam since 2009.
The new joint venture will allow Hyundai Motor to participate in local sales directly, reorganize the sales network, improve marketing efficiency and enhance its brand image. In particular, it plans to build a solid sales and service network to quickly respond to market demands.
Hyundai Motor and Thanh Cong Group have a close partnership. They have established a production joint venture. Hyundai started production of automobiles in Vietnam in 2011 by establishing a CKD system with Thanh Cong Group. In March 2017, Hyundai Motor launched HTMV, a production joint venture with Thanh Cong Group. Since then, the joint venture has been manufacturing overseas strategic models including the i10, the Accent, the Elantra, the Tucson, the Santa Fe, and the Porter.
Hyundai Motor plans to build a marketing system capable of selling 100,000 units annually in the Vietnamese market. HTMV changed its production system from two shifts to three shifts this month, raising its production capacity from 49,000 units to 60,000 units. In the second half of 2020, HTMV production capacity will be further increased to 100,000 units a year with the completion of its second factory.
Last year, Hyundai Motor achieved record sales of 59,924 units in the Vietnamese market, a jump of more than 100 percent over the same period of 2017. The automaker surpassed 50,000 units in sales for the first time since its entry into Vietnam and its market share grew by 7.5 percentage points to 19.4 percent. Vietnam is the first country in Southeast Asia where Hyundai Motor sold more than 50,000 units in a year. Hyundai Motor is second only to Toyota in the Vietnamese vehicle market.