BMW expands its global production network with the addition of a new plant in Asia. The Bavarian company announces a new partnership with Truong Hai Auto Corporation (THACO) for the local production of vehicles in Vietnam. This is the sixth BMW factory on the continent after the production sites in Thailand, Malaysia, China, Indonesia, and India.

The Munich-based automaker was relaunched in Vietnam five years ago and already has a new agreement with the local THACO to produce the 3 Series, 5 Series, X3, and X5 in the country. With the new location, BMW’s production network around the globe grows to over 30 locations and includes not only vehicle assembly sites but also powertrain plants. The manufacturer runs standardized processes around all its factories to ensure consistent quality.

Gallery: 2023 BMW 3 Series

“This is a major milestone for the BMW Group in Asia Pacific as we look to strengthen our geographic footprint in the region,” Michael Nikolaides, senior VP at BMW responsible for the production network and supply chain. “With this decision, the BMW Group once again is applying its strategic principle of production follows the market. There is long-term growth potential in the Vietnam market, and we are excited to take this next step with THACO to locally produce some of our most popular models.”

THACO was founded in 1997 and currently is one of the country’s pioneering and largest companies in the automotive business. The firm operates a joint venture with Kia at its main factory and also produces and manufactures Mazda passenger cars through its VinaMazda subsidiary. 

BMW Group entered officially the Asian continent back in 1985 and currently has an office in Singapore overseeing 14 markets across East Asia for both BMW and Mini. These markets include Singapore, Vietnam, Philippines, Indonesia, Brunei, Bangladesh, Sri Lanka, Nepal, Tahiti, Guam, New Caledonia, Laos, Cambodia, and Myanmar.

Just recently, BMW started the production of the XM at its Spartanburg plant in the United States. The high-performance SUV will be assembled in South Caroline alongside other SUV models from the brand, including the X5, X6, and X7.

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