Thaco H1 profit falls as auto market remains listless
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Automaker Thaco Group reported first half profits of VND1.076 trillion (US$45.6 million), or less than a quarter of last year’s figure, amid an auto market slump.
Its profit margin of 2.1% was a fifth of the rate in the first half last year, the company said in a financial report it sent to the Hanoi Stock Exchange.
The car market has been sluggish since the last quarter of 2022. Thaco Group recently slashed the prices of many models it manufactures and distributes by hundreds of millions of dong (VND100 million = $4,114) to stimulate demand.
Thaco Group still has a sales target of over 120,000 vehicles for this year, including 96,000 passenger cars, 23,500 trucks and 1,500 buses and mini buses.
According to statistics from the Vietnam Automobile Manufacturers Association, Thaco sold some 58,000 cars in the first eight months of this year, down 40% year-on-year and only 48.3% of its target.
Questions & Answers
Q.By how much did Thaco's first-half profits decrease compared to last year?
By how much did Thaco's first-half profits decrease compared to last year?
Thaco Group's first-half profits were VND1.076 trillion ($45.6 million), which was less than a quarter of the figure reported for the same period last year.
Q.What is Thaco's sales target for the current year across its different vehicle types?
What is Thaco's sales target for the current year across its different vehicle types?
Thaco Group aims to sell over 120,000 vehicles this year. This includes 96,000 passenger cars, 23,500 trucks, and 1,500 buses and minibuses.
Q.What actions has Thaco taken to try and boost demand in the sluggish auto market?
What actions has Thaco taken to try and boost demand in the sluggish auto market?
The company recently reduced prices on many of its manufactured and distributed models. These price cuts amounted to hundreds of millions of dong.
Q.How do Thaco's actual sales for the first eight months compare to their annual target?
How do Thaco's actual sales for the first eight months compare to their annual target?
Thaco sold approximately 58,000 vehicles in the first eight months of the year, representing 48.3% of its annual sales target. This figure is also down 40% year-on-year.
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