PSA and THACOVietnam – The vehicles will be assembled at the Truong Haï Auto Corporation plant at Chulai, Quang Nam Province, according to the deal signed by the two companies. Operations will begin in October this year, with the aim of producing 27,000 units to meet domestic demand up to 2020.“The strengthening of our partnership in Vietnam with THACO Group is part of [PSA’s] long-term strategy to increase sales in South-East Asia, a strategic region with strong growth potential,” commented Denis Martin, executive vice-president China and ASEAN, PSA Group. “The development of our local production capacities with THACO will allow us to aim for 5% market share in Vietnam in 2020, a market that should rapidly exceed 300,000 vehicle per year.”

PSA said the two SUVs will complement its existing offerings of the Peugeot 208, 3008 and 508 and will be “the spearhead of a modern range to position Peugeot as the best high-end, generalist brand” in the country.

THACO has been an assembler, importer and distributor of Peugeot vehicles in Vietnam since 2014. The new agreement is part of PSA’s ‘Push to Pass’ strategic growth plan.