Giant of the Chinese auto industry and their ambition for the Vietnamese light truck market amid the COVID-19 pandemic

July 01, 2021 - 08:00

Even when the COVID-19 pandemic continues to create great concerns in Viet Nam, the local light truck market has become an attractive destination for one of China's largest automakers.

Even when the COVID-19 pandemic continues to create great concerns in Viet Nam, the local light truck market has become an attractive destination for one of China's largest automakers.

From the giants of the Chinese auto industry…

Founded on November 18, 2002, SGMW quickly became a well-known name in the international automotive industry. However, this name comes as a fresh introduction to the Vietnamese market.

SGMW is a joint venture between SAIC Motor, General Motors China and Liuzhou Wuling Motors. SAIC Motor is the biggest car manufacturer in China and is considered one of the four major pillars of the auto industry in the country of more than a billion people and the second-largest economy in the world. This is also a highly respectable brand as one of the 10 largest global manufacturers. SAIC Motor was also honoured to rank 52nd in the Fortune 500 2020 most valuable companies globally. In Viet Nam, MG is one of their well-known product lines that shows its product brand and quality are in the hearts of consumers.

SGMW plant in Liuzhou, Guangxi, China (Image: SGMW)

General Motors is one of the top automotive corporations in the world with substantial investment in SGMW with extensive involvement in design, engineering, manufacturing and R&D as well as providing professional and highly specialised management knowledge and capabilities. SGMW adopted the General Motors Manufacturing System in its manufacturing of passenger vehicles and commercial vehicles, including powertrains.

Liuzhou Wuling Motors has manufactured Wuling minivans since 1982. Wuling Motors develops and produces engines, special purpose vehicles, trucks, and buses as well as automotive parts. In 2002, with the new joint venture of SGMW, Wuling transferred the production of minivans and small trucks to the new company.

With the formidable merging of the resources and technologies through this joint venture, SGMW has distinct advantages that not all manufacturers have. SGMW has introduced cutting-edge business concepts, management systems and manufacturing methods while simultaneously ensuring two goals: low cost (to have the most reasonable selling price to consumers) and high-quality products (equipped with many new technologies, and increased serviceability for users).

In Viet Nam, Tan Chong Motor Vietnam (TCMV) is the exclusive importer and distributor of trucks and vans from SGMW. With the motto "Your Dependable Companion", TCMV aims to bring value to customers with global brands and high-quality products through continuous research and development, including manufacturing suitable products for the Vietnamese market.

… to a bold decision on the small truck market in Viet Nam

TCMV, in co-operation with SGMW, will launch three new models, including two trucks and a van, in the Vietnamese market soon. Although COVID-19 still has an impact on business, bringing new products to market at this stage after careful consideration is a reasonable and astute decision.

TCMV Plant in Da Nang (Image: TCMV)

The pandemic has created an explosion of online shopping, leading to the fact that new warehouses can be built and located anywhere; logistics service and short distant delivery will have tremendous growth potential in the near future. The demand for small trucks for this kind of transport will also increase.

SGMW was an annual million-output automaker in past years and reached 20.25 million sales in 2019. In 2020, it sold more than 1.18 million units and continues to see dramatic growth in 2021. With such exceptional performances from SGMW and the optimistic signals from the Vietnamese light truck market which indicates resilience despite the threat of the pandemic, TCMV and SGMW are firm in their belief with the introduction of these new product lines.

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