Mercedes distributor posts major profit jump
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Vietnam’s biggest Mercedes distributor Haxaco posted a pre-tax profit of VND102 billion ($7.36 million) in the second quarter, up 12.6 times year-on-year.
Its profit for the first six months was VND172 billion, or 80 percent of its target for the year.
The company said the government’s 50 percent discount on registration fees of cars assembled locally has helped push sales and increase its profit margin.
“Haxaco’s profit rose because demand for luxury cars surged after the pandemic.”
It also received incentive interests from banks and saw its loan expenses drop 41 percent year-on-year in the first six months.
Haxaco is the biggest Mercedes distributor in Vietnam, followed by Andu and Vietnam Star.
It has four dealerships in Vietnam, with two each in Hanoi and Ho Chi Minh City. It plans to open a new one in the southern city of Can Tho by the end of this month.
Mercedes first assembled its cars in Vietnam in 1996. Vietnam is the first country apart from Germany that assembles its luxurious lineup S-Class.
Questions & Answers
Q.What contributed to Haxaco's significant profit increase in the second quarter?
What contributed to Haxaco's significant profit increase in the second quarter?
The government's 50 percent discount on registration fees for locally assembled cars boosted sales and profit margins. Also, the company benefited from incentive interest rates from banks, leading to a 41 percent drop in loan expenses.
Q.How did Haxaco's half-year profit compare to its annual target?
How did Haxaco's half-year profit compare to its annual target?
Haxaco's profit for the first six months was VND172 billion. This figure represents 80 percent of its target profit for the entire year, indicating strong performance against its financial goals.
Q.Where does Haxaco plan to expand its dealership network?
Where does Haxaco plan to expand its dealership network?
Haxaco currently operates four dealerships, two in Hanoi and two in Ho Chi Minh City. The company plans to open a new dealership in the southern city of Can Tho by the end of the current month.
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