Vietnam runs out of luxury cars
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Many auto brands have no luxury cars to supply Vietnamese customers due to global semiconductor shortage.
Trung Kien, 33, from the northern province of Bac Ninh, said he has been looking for a luxury car with a price tag of around VND7 billion ($300,000) for a month, but found nothing to buy.
He said he would have to wait for three to six months to get a popular luxury car delivered, due to shortage of components, especially semiconductors and chips.
Over the last two years, supply from the world’s largest producer, China, has been trickling due to impacts of Covid-19, resulting in a global shortage.
Supply of luxury cars in Vietnam is hit the hardest, as brands focus on delivering orders to their major markets like the U.S. or European countries.
Mercedes-Benz customers are said to wait for at least three months for some SUVs and S-class sedans, and up to a year for the ultra-luxury Maybach sedans and SUVs.
Some locally made models, including E-class sedans and GLC SUVs, are also in short supply, so buyers will have to wait 1-2 months to get their unit delivered.
Many auto dealers are accepting deposits but not promising when they can deliver cars.
Vinh Nam, an experienced luxury car salesperson in HCMC, said customers have gotten used to the current shortage.
“They prioritize getting a car rather than a color of choice and other options”.
BMW used to have a fairly steady supply despite having to import vehicles, but in recent months supply has declined and buyers have to wait three to six months for delivery.
Buyers of Porsche, Lexus and Land Rover have the longest waiting time of 12-14 months depending on their choice of color and options, up from the earlier six to nine months.
Many buyers are impatient and as a result are not making deposits with dealers, while some are turning to the gray market.
The shortage of auto parts is also hurting buyers, with some brands raising their prices and cutting promotions.
Some models are being sold at above listed prices. A Land Cruiser LC300, for instance, is being offered at VND5.5 billion, 37.5 percent higher than the original price.
Questions & Answers
Q.Which luxury car brands are experiencing the longest waiting times for delivery in Vietnam?
Which luxury car brands are experiencing the longest waiting times for delivery in Vietnam?
Buyers of Porsche, Lexus, and Land Rover face the longest waiting times, ranging from 12 to 14 months. This is an increase from the previous waiting period of six to nine months for these brands.
Q.Why is the supply of luxury cars in Vietnam particularly affected by the global semiconductor shortage?
Why is the supply of luxury cars in Vietnam particularly affected by the global semiconductor shortage?
Luxury car supply in Vietnam is hit hardest because brands are prioritising deliveries to major markets such as the U.S. And European countries. This leaves fewer vehicles available for the Vietnamese market.
Q.Are locally made luxury car models also affected by the current supply issues?
Are locally made luxury car models also affected by the current supply issues?
Yes, some locally made models are also in short supply. Buyers of E-class sedans and GLC SUVs, for example, can expect to wait one to two months for their delivery.
Q.How are current car shortages impacting car prices and promotions in Vietnam?
How are current car shortages impacting car prices and promotions in Vietnam?
The shortage means some brands are raising their prices and cutting promotions. Also, certain models are being sold above their listed prices, such as the Land Cruiser LC300.
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