Employees of Toyota Vietnam check cars before the vehicles are launched to the market. (Photo: motthegioi.vn)
India-headquartered Pricol Limited, an automotive components manufacturer, has plans to establish factories in Vietnam and Mexico and make acquisitions in Europe, the India Times reported.
“The project in Vietnam is expected by the next calendar year,” said Vikram Mohan, managing director of Pricol. The 40-year-old company currently has eight manufacturing locations and seven international offices.
Currently around 40% of the company’s revenue is drawn from two-wheeler industry and 30% from the four-wheeler segment. Tractors, off-road vehicles, three-wheelers and others contribute to the remaining 30%.
Car sales in Vietnam jumped 55.2% year-on-year to 244,914 units in 2015, setting an all-time record high, beating earlier estimate of 200,000 units for the year, according to the Vietnam Automobile Manufacturers’ Association (VAMA
The sales put Vietnam the fifth-largest car market in the ASEAN and the potential remains huge, according to Toyota Vietnam.
Car sales in the country are expected to reach 370,000 units by 2020 when its income per capita is projected to hit $3,000, VnExpress.vn cited a Toyota Vietnam representative as saying.