Losing billions, Renault car distributor seeks to 'escape' from Vietnam

Downsizing and selling "distribution rights", Auto Motors Vietnam - the distributor of Renault cars in Vietnam is said to be looking for a way out after nearly 7 years in the market.

The French distributor with 100% foreign direct investment and a subsidiary of the Jean Rouyer Automobile Group has been continuously losing money in recent times, with losses reaching billions. The current miserable decline in the car market in general and imported cars in particular has forced this distributor to find a way to withdraw from Vietnam.

It is known that the company's showroom in Ho Chi Minh City has closed and the showroom in Hanoi has stopped selling cars and only provides services to customers who have purchased cars.

3 other dealers not affiliated with Auto Motors still operate in Pleiku, Hai Phong and Vinh City.

Renault car brand entered Vietnam in 2010.

A Vietnamese leader of this distributor said that Auto Motors Vietnam is looking for a partner to transfer the distribution rights of Renault brand cars as well as the affiliated dealer system. This distributor has sold all the cars to customers or dealers, so it has temporarily stopped importing new cars and only imported spare parts to serve after-sales service for customers.

Auto Motors Vietnam brought the Renault brand to Vietnam in mid-2010 and expanded its distribution system quite strongly. However, from the beginning, due to the high brand positioning, Renault cars were priced sky-high and sales were low. After a while, under pressure from sales, many car models were “heavily discounted” and sometimes reduced by several hundred million VND.

Some experts predict that the car market, especially imported cars in Vietnam, will continue to be strongly disrupted when the fate of the BMW brand is still undecided and some brands are in a "distressed" state due to unsold products similar to Renault. In addition, proposals to adjust tax policies will also have a significant impact on the market situation in the coming time.

According to Labor Newspaper