Tasco Auto Completes VM Motors Stake Acquisition in Vietnam

Tasco Auto Completes VM Motors Acquisition

On September 18, 2026, Tasco Auto announced that it had completed the acquisition of a stake in Vinh Phat Motors, also known as VM Motors. The companies plan to develop commercial vehicle, truck, van, and specialized vehicle production and assembly in Vietnam, with a focus on purely electric and other new energy vehicles. The transaction establishes a foundation for expanding local production capabilities while supporting the companies' plans for a dedicated new energy commercial vehicle business.

VM Motors Factory Supports Local Vehicle Assembly

Founded in 2015, Vinh Phat Motors began operating its factory in 2017. The facility is located in the Ho Chi Minh City Automotive Mechanical Industrial Park, where it assembles trucks using standardized completely knocked down components. The assembly process is based on technology transferred from Isuzu Qingling Group in 2015. This existing manufacturing setup provides the companies with an established production base as they prepare to expand into electric and other new energy commercial vehicles.

Electric Assembly and Testing Capabilities

Following the acquisition, Tasco Auto and VM Motors intend to strengthen their capabilities for electric vehicle assembly and testing. The planned development covers battery systems, electric powertrains, high-voltage electrical safety, and technician training. These areas are central to preparing the existing manufacturing operation for new energy commercial vehicle production. The companies' plans indicate an effort to build technical capabilities across both vehicle assembly and specialized electric-vehicle systems rather than limiting the initiative to conventional truck manufacturing.

Commercial Vehicle Production Plans

The planned product scope includes commercial vehicles, trucks, vans, and specialized vehicles, with purely electric and other new energy models forming a central part of the initiative. The companies are targeting 2027 for the first batch of products from the new development. They also plan to establish a dedicated brand for their new energy commercial vehicle line. The timing connects the manufacturing capability expansion with a defined product-development target and gives the initiative a specific milestone for moving from capability development toward vehicle production.

Vietnam Manufacturing Expansion

The initiative places the planned new energy commercial vehicle production within Vietnam, using VM Motors' existing factory and technical foundation as part of the development. Expanding battery, electric powertrain, high-voltage safety, and technician capabilities will require the companies to build on the site's current truck assembly operations. The approach also links the acquisition directly to manufacturing and product-development activities rather than treating the transaction solely as a financial investment. The 2027 target provides a stated timeframe for the first products to reach production.

Industry Impact & Outlook

The acquisition could broaden Vietnam's local commercial vehicle manufacturing capabilities by combining an existing truck assembly operation with planned electric vehicle technologies and technical training. For Tasco Auto and VM Motors, the next steps center on developing battery and electric powertrain expertise, strengthening testing and high-voltage safety processes, training technicians, and preparing the first product batch targeted for 2027. The planned dedicated brand could also establish a distinct market identity for the new energy commercial vehicle line, while the actual scale and competitive impact will depend on how successfully these production and product-development plans are implemented.

Frequently Asked Questions

What did Tasco Auto acquire from VM Motors?
The transaction involved Tasco Auto completing the acquisition of a stake in Vinh Phat Motors, known as VM Motors, on September 18, 2026. The companies plan to use the relationship to develop commercial vehicle, truck, van, and specialized vehicle production and assembly in Vietnam. Their plans emphasize purely electric and other new energy vehicles, alongside expanded capabilities for battery systems, electric powertrains, high-voltage electrical safety, and technician training. The companies are targeting 2027 for their first batch of products and intend to create a dedicated new energy commercial vehicle brand.