Car dealers’ profits soar

Auto dealers reported three- and even four-digit growth in net profits year-on-year in the first half of the year amid a surge in demand.

Saigon General Service Corporation (Savico) reported profits of more than VND140 billion, a 487-percent rise, on consolidated revenues of over VND7 trillion ($304.3 million).

Hang Xanh Motors Service Joint Stock Company (Haxaco), a major dealer for Mercedes-Benz, merely said profits grew in triple digits to VND61.5 billion.

Truong Long Auto & Technology Joint Stock Company reported growth of 650 percent.

Ford dealer City Auto Corporation said profits were up 3,300 percent at VND17 billion.

TMT Motors Corporation reported profits of VND21 billion, up 1,650 percent.

The strong profit growth somewhat reflected a recovery in the market, with Hang Xanh saying sales in the second quarter rose by 20 percent year-on-year.

According to the Vietnam Automobile Manufacturers’ Association, its members sold over 135,600 vehicles in the first half, up 32 percent. The numbers do not include the sales of Audi, Jaguar Land Rover, Subaru, Volkswagen, Volvo and some others, who did not reveal their numbers.

According to the General Department of Vietnam Customs, the country imported over 81,100 complete built-up vehicles in the six-month period, a 100.5 percent increase.

But dealers expect a gloomy market in the second half, mainly due to the impact of Covid-19.

Saigon General Service Corporation said the pandemic would have a strong impact on sales in the third quarter.