VIETNAM’S THACO will be bringing its trucks and buses to the Philippines, citing growing demand for commercial vehicles, with local partner BJ Mercantile, Inc.
“We think that the Philippine market has potential; we believe that our products and our services can meet all the market’s requirements,” THACO Auto Vice-President Doan Dat Ninh said at a briefing on Thursday.
He said the Philippines has a “well-defined public transportation system modernization roadmap.”
THACO, short for Truong Hai Auto Corp., and BJ Mercantile have signed a truck and bus distribution agreement.
Under the deal, BJ Mercantile will initially distribute the Thaco Cruizer 80, Thaco Cruizer 85, Thaco Cruizer 110, and Thaco Cruizer 120 bus models.
BJ Mercantile will also serve as the official service, and parts distributor for THACO vehicles.
Beyond the initial bus lineup, BJ Mercantile will also consider offering sleeper buses for long-distance routes, as well as medium-duty trucks.
Asked about sales targets, BJ Mercantile Vice-President Leilani Lim-Tan said that only the two partners are “hoping to reach a very good number in the next three years.”
She said that the partnership will benefit from the free trade agreement between the Philippines and Vietnam, which will allow BJ Mercantile to bring in completely built THACO units.
Sales of light trucks and buses have been increasing due to growing demand for logistics services and refleeting in the bus industry, Ms. Lim-Tan said.
“On the truck side, smaller trucks (for logistics) are moving, but with bigger trucks, those are a little bit still on the slow side,” she said.
“Actually, I’m very happy that the buses have been moving quite well. During the pandemic, all of the bus operators were hit; they were only able to (resume full operations) in 2023. But they are very active right now in terms of refleeting,” she added.
The Chamber of Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association reported that sales of light-duty trucks and buses grew 17.2% in the first five months.
THACO adds to BJ Mercantile’s brand portfolio, which includes Scania, Ashok-Leyland, Fuso, and Hongqi.
THACO vehicles will be showcased at the company’s showroom in EDSA Balintawak. — Justine Irish D. Tabile