Luxury cars flooding Vietnamese market
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From now to 2020, Mercedes Benz Vietnam plans to double its sales agent network, an important step for the luxury car manufacturer to cement its position in the Vietnamese market.
Speaking to local mass media on December 3, Choi Duk Jun, CEO of Mercedes Benz Vietnam, said together with the expansion of product items, the enlargement of sales agents will be a strategic move that helps Mercedes increase its market share in Vietnam.
Mercedes Benz has the highest number of sales agents in Vietnam with 12 centers throughout the country.
Sources said Rolls-Royce, a brand of German BMW, which also owns two other strong brands – BMW and Mini — is also preparing to enter the Vietnamese market.
Toyota Vietnam has opened an authorized agent in the central region, raising the number of total sale agents in Vietnam to 44.
Ford Vietnam has opened an authorized agent in Binh Duong province, while it has upgraded Pho Quang branch of Sai Gon Ford into a 3S branch. It is preparing to open another showroom, belonging to Sai Gon Ford, in the central business district 1 in HCMC.
The new centers are reported as having investment capital of VND120 billion. The number of Ford’s sales agents and service centers in Vietnam has increased to 27.
The Vietnamese market had its highest sale growth rate of 60,000 cars in 2016 compared to 2015.
“Toyota Vietnam has opened an authorized agent in the central region, raising the number of total sale agents in Vietnam to 44.”
The sale of luxury cars and sports cars also increased sharply. Mercedes led the market segment with 4,401 cars sold in 2016, an increase of 22 percent over the year before.
Meanwhile, Lexus sold 1,665 cars, up by 73 percent. Audi, Porsche and BMW have not revealed the sales, but reported growth.
A source said Porsche had fulfilled its yearly sales plan in Vietnam by mid-2016.
The sales surprised many analysts, because prices had increased sharply.
Lexus LX570, for example, saw the price increasing from VND5.7 billion to VND8 billion, while Maybach S600 was from VND10 billion to VND14 billion. Rolls Royce Phantom price soared from VND54 billion to VND84 billion.
Oxfarm, a non-government organization, on January 12 released a report on inequality in Vietnam, pointing out that the income gap between the richest and poorest Vietnamese people is very large. The richest Vietnamese has the daily income higher than the 10 year-income of the poorest.
In related news, Marquardt from Germany had a working session with Da Nang authorities on its plan to set up an automobile part factory in the city.
Questions & Answers
Q.What is Mercedes Benz Vietnam's strategy for increasing its market share?
What is Mercedes Benz Vietnam's strategy for increasing its market share?
Mercedes Benz Vietnam plans to double its sales agent network by 2020. This expansion, along with increasing product items, is a deliberate step to help them grow their market share in Vietnam.
Q.Which luxury car brands showed their sales figures for 2016?
Which luxury car brands showed their sales figures for 2016?
Mercedes led the market segment with 4,401 cars sold in 2016, an increase of 22 percent. Lexus sold 1,665 cars, which was up by 73 percent compared to the previous year.
Q.How did the prices of some luxury cars change before surprising analysts?
How did the prices of some luxury cars change before surprising analysts?
The Lexus LX570 increased from VND5.7 billion to VND8 billion, and the Maybach S600 went from VND10 billion to VND14 billion. The Rolls Royce Phantom's price soared from VND54 billion to VND84 billion.
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