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Vietnamese luxury car brands expected to raise market shares

May 02, 2020 | 15:34

The luxurious car market is expected to develop strongly this year, despite the automobile industry facing challenges due to the COVID-19 pandemic.

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vietnamese luxury car brands expected to raise market shares
Thaco car (Photo: Xa luan)

The luxurious car market is expected to develop strongly this year, despite the automobile industry facing challenges due to the COVID-19 pandemic, causing automakers to suspend or reduce production.

According to the Vietnam Automobile Manufacturers Association (VAMA), the market has a huge room due to the stable economic growth, positive changes of foreign investment and trade, and policies for foreign trade. with the automobile industry more improved.

Vietnamese people are moving from popular cars to luxury cars. This is also the reason why many auto businesses have focused on domestic production and assembly while importing luxury cars for distribution.

This makes the Vietnam automobile market lucrative for most luxury brands in the world such as Mercedes-Benz, BMW, Audi, Lexus, Maserati, Jaguar, Land Rover, Porsche, Bentley, Rolls-Royce, Ferrari...Among luxury brands, Mercedes-Benz is the only brand with a manufacturing plant assembled in Vietnam, the rest is imported for distribution, according to VnReview

vietnamese luxury car brands expected to raise market shares
Mercedes-Benz car (Photo: Mua xe gia tot)

Despite having a population of nearly 100 million, the car ownership rate in Vietnam is quite modest with just over 20 cars per 1,000 people, much lower than other countries in the region. In this trend, the car manufacturers will meet new consumer trends as well as meet the increasing and diverse needs of customers.

Director of Thien Phuc An Company Nguyen Tuan, who for many years imported cars, said the Vietnamese economy is stably developing with increased average income. The middle class has risen and the automobile market growth was consistently higher than the previous year.

“The trend of consumers shifting to use more expensive cars is the key reason for luxurious brands "landing" in the Vietnamese market,” Tuan said.

In 2019, although it was forecasted that the market would face many difficulties, Mercedes-Benz Vietnam still consumed more than 6,800 units, an increase of 8 per cent compared to 2018. This German brand has always held the leading position in the luxurious car market in recent years thanks its local assembly of various auto models, creating a price advantage over imported cars.

vietnamese luxury car brands expected to raise market shares
Toyota Lexus car (Photo: 24h)

As for Lexus, which is imported by Toyota Motor Vietnam, more than 1,500 units were sold in 2019, up 157 per cent year-on-year. Meanwhile, Truong Hai Automobile Group (Thaco) was estimated to sell about 1,000 cars last year. Other brands such as Audi and Jaguar Land Rover reported they saw good growth.

After Mercedes-Benz Vietnam launched six new models last month, Thaco last week introduced 10 BMW models in the 3-Series, 7-Series, X1, X5 and X6 ranges. Thaco is also the first enterprise in Viet Nam to launch new cars online due to the COVID-19 pandemic and social distancing period.

Vinh Nam, an expert in the field of luxurious cars from AVIS Vietnam, said that Thaco’s launch of BMW models is a good signal despite the COVID-19 outbreak, increasing competitiveness with Mercedes-Benz and Audi in the Vietnamese market.

“However, the limitation of BMW is that it is imported and subject to high taxes, so its competition with domestically assembled cars of Mercedes-Benz is relatively fierce at this time,” Nam said.

Nam said Audi Vietnam has recently launched its Q3 model and is preparing to introduce some new models, so the luxurious car market will heat up.

“Consumers will have many choices while companies must strive to gain market share", according to VNS.

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