Vietnamese people spend money to buy luxury cars

It can be seen that 2013 is the year that luxury cars are racing to enter Vietnam. This list is now getting longer, Audi, Mercedes, BMW, Porsche, then Land Rover and soon Lexus, Infiniti, Jaguar..

Earlier this month, Euro Auto announced its cooperation with Sime Singapore Limited (SSL – a member of Sime Darby Motors Malaysia) – a major car distributor in Asia and Australia. And at the handover ceremony of the new BMW 5 Series to Sheraton Saigon, BMW Euro Auto General Director Horst J. Herdtle did not disclose the number of shares SSL contributed, but said that it was a very significant proportion. This can be seen as a move to increase its wings to boost the business of long-standing BMW car lines and the MINI brand, which is considered "in its infancy" in Vietnam.

Also at the beginning of the month, Audi Vietnam announced its expansion into Cambodia. The German luxury car manufacturer Audi AG has appointed Asia Automobile Co., Ltd. (which imports Audi in Vietnam) as the official importer of Audi in Cambodia. When asked whether Audi would use Cambodia as a “stepping stone” to officially bring Audi cars to Vietnam in order to have a better selling price than cars imported directly to Vietnam at present, Audi said that there was no such thing, but on the contrary, Audi Vietnam orders, imports and exports to Cambodia.

If Euro Auto’s partner is Sime Darby Motors – one of the largest car distributors in Asia today; then CFAO, the parent company of Audi’s import and distribution company in Vietnam, is also a car import and distribution company and many other fields, operating in dozens of countries. It is not known whose potential is stronger.

Getting ready to "run around"

In October 2013, Lexus entered Vietnam, Nissan brought in the Infiniti line and UK Auto is in the process of bringing in the Jaguar line when there are signs of very good business from the Land Rover brand.

Mr. Nguyen Dinh Duy, marketing representative of UK Auto Vietnam - authorized dealer of Land Rover, said that in 2013, the number of cars sold by this unit was quite good, only counting the first three quarters of the year, the number of cars sold increased by 100% compared to the previous year. This can be seen when at the 2013 auto show, all of Land Rover's displayed cars were purchased. Mr. Duy also admitted that the luxury car brand Jaguar will come to Vietnam next year, also through UK Auto.

Currently, Porsche Vietnam (Prestige Sports Cars) also regularly introduces new car models to the domestic market. Most recently, the company announced the 911 GT3 to the market with a delivery time for customers who order from 3 to 6 months.

Mr. Horst J. Herdtle said that in recent years, sales have increased steadily by double digits, each year higher than the previous year, and the luxury car market still has a lot of potential. Therefore, recently, Euro Auto officially distributed MINI cars in Vietnam.

Audi said it has grown continuously for five consecutive years since its establishment in Vietnam. Since the beginning of the year, the number of cars delivered to customers has been higher than in 2012. The company also said it is likely that more than 500 cars will be delivered to customers in 2013.

In Vietnam, Mercedes-Benz (MBV) announced at the end of October that it would be assembling the popular S500 model. An S500 assembled in Vietnam will cost around VND4.6 billion, while an imported one will cost around VND5.9 billion. “That is also an advantage for customers while the quality of the car remains unchanged,” said Michael Behrens, general director of Mercedes-Benz Vietnam.

Mr. Michael Behrens said that at the exhibition last October, many luxury car lines had set foot in Vietnam and there will be many other luxury brands in the near future. This shows that suppliers are confident that they will sell cars in Vietnam. He is also confident that with 18 years in Vietnam and leading the luxury car segment with a market share of more than 50%, the company is not worried about other competitors but welcomes their entry as it will enrich the market and give customers more choices.

According to the tariff schedule from the countries signing the ASEAN – AFTA free trade agreement, by 2018, the import tax on cars to Vietnam from this region will be 0%. In the roadmap with the WTO, according to the commitment, the import tax rate on cars from WTO members will be reduced to 70% by 2014.

Luxury cars are already selling well, and with the tax reduction schedule, suppliers hope to sell even better.

According to vietnamnet