The new plant covering 15 hectares at the company’s Quang Nam assembly complex will assemble buses of various kinds under Thaco brand. The new plant’s products will include Thaco Mobihome, Thaco County, and Thaco Areo Town, Thaco Universe from 18 to 51 seats; and city buses from 30 to 80 seats with around 40%-46% of its parts being locally-made.

The VND600-billion new plant, including some VND400 billion for the first phase, has four main workshops comprising welding, assembling, painting, and storing facilities.

Thaco said the first phase of the new plant has a capacity of 1,500 units per year. The new plant will also assemble and produce specialized commercial vehicles upon the demand of customers like vehicles serving artistic companies and clinics.

Tran Ba Duong, chairman cum general director of Thaco, said that his company had started to assemble buses and sleeping buses since 2006 with the first order from Hoang Long Transport Company. After that, many other transport companies like Phuong Trang, Thuan Thao, Phuong Hoang, and Thanh Buou have used Thaco’s sleeping buses for long-distance transport.

Up to now, the company has sold nearly 1,100 sleeping buses, or a 95% market share for the segment.

Last month, Thaco also started assembling Hyundai commercial vehicles at the company’s Quang Nam assembly complex.

Hyundai commercial vehicles of various makes in the local market will be assembled at Thaco’s auto factory in Chu Lai Open Economic Zone. Thaco said the Hyundai assembly line at the factory has a capacity of 10,000 units per year.

The local automobile maker expects to sell at least 34,500 vehicles this year, or 8,600 vehicles more than last year, with a total revenue expected at VND12.43 trillion (US$600 million) and an after tax profit at VND800 billion this year.

Thaco targets a market share of 29.2% among members of Vietnam Automobile Manufacturers’ Association (VAMA) this year. Last year, the company sold more than 25,830 vehicles in all, obtaining a total revenue of VND8.205 trillion and after-tax profit of VND666 billion.

Last year, the automaker paid more than VND360 billion in dividends, up 89.4% against 2009.