Mercedes distributor posts major profit jump
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.