THACO Plastic Components Company – A Key Driver in the Automotive Components Industry

With the growth of the automotive industry, manufacturers are increasingly looking for reliable component suppliers to boost localization rates. Among these, plastic components play a critical role — accounting for 30 to 50 percent of a car’s parts — making them a “key factor” in advancing the domestic automotive components sector.

However, the local supply of plastic components has not kept pace with demand. Most businesses still rely heavily on imports, which results in production dependency and low localization rates. The Covid-19 pandemic further highlighted this weakness, with raw material shortages, supply chain disruptions, high logistics costs, and long delivery times causing serious challenges for many companies.

THACO INDUSTRIES, however, has been one of the few exceptions. By securing its supply through in-house production at THACO Plastic Components Company, the Corporation was maintained stability and mitigated the severe impacts of these disruptions.

Strengths of Vietnam’s Leading Automotive Plastic Components Manufacturer

To proactively supply plastic components and increase the localization rate of both domestic and export automobile products, THACO Plastic Components Company was established in 2018. Unlike many automotive plastics businesses that only produce simple parts or handle limited processing stages, the company has built a complete value chain, from research and product development to mold processing, production, and final supply.

In plastic component production, molds play a critical role. With its mold plant, the company independently designs and manufactures molds tailored to customer-specific requirements. The plant is also equipped with advanced technologies, including injection molding machines with press capacities ranging from 110 to 3,200 tons, capable of producing large, complex, and high-precision parts. It also leads Vietnam in plastic painting technology, with a robotic painting system and automated paint supply line that meet the premium color standards required by major automakers such as Kia, Mazda, and Peugeot.

By mastering technology and maintaining proactive production, the company has significantly contributed to raising the localization rate for THACO’s vehicle lines. It also plays an active role in the plastic component supply chain for major automobile and motorbike manufacturers, helping to increase domestic production content and meet Regional Value Content (RVC) standards.

According to industry experts, Vietnam’s auto sector has recently seen strong progress in producing and supplying OEM components. As a trusted partner of leading automakers, THACO Plastic Components Company understands global requirements and processes for component manufacturing. Based on this, it has developed a clear localization roadmap aligned with international standards.

Currently, THACO INDUSTRIES supplies automotive plastic components in OEM form and provides plastic component painting for brands including Kia, Mazda, Peugeot, Hyundai, Toyota, and Piaggio. The company also exports to Russia and Malaysia, with revenue in 2021 expected to increase by 50% compared to 2020.

Product Development for Other Industries and Export

Building on its expertise in automotive plastic components, THACO Plastic Components Company has expanded into producing a wide range of plastic products for various industries including household appliances, electronics, and mechanical applications. Its portfolio includes pallets, ventilation covers, plastic tanks, air conditioner covers, vacuum cleaner housings, and air purifiers.

The company also collaborates with the THACO Chu Lai Mechanical Complex (Quang Nam) to produce high-tech plastic products combined with steel structures, such as micro pulley rollers, plastic tanks, industrial pallets, and workshop chairs for auto mechanics. This technology integration improves product quality, enhances competitiveness, and reduces costs.

In 2021, the company began exporting non-automotive plastic products for the first time. Items such as door lock covers, stadium seats, and plastic bottles were shipped to the US, Australia, and Canada.

Looking ahead, THACO Plastic Components Company is forming joint ventures with major partners to gradually integrate into the global plastic supply chain. The company is also upgrading technologies and diversifying its product range while strengthening cooperation with FDI enterprises to grow the domestic market and expand exports to the EU, US, Australia, Japan, and beyond.