Based on the Vietnam Register (VR), the variety of luxurious vehicles registered in H1 was far increased than the identical interval final yr.
As many as 3,929 Mercedes Benz automobiles have been bought within the first half of the yr (the determine was 3,071 for a similar interval final yr), main the luxurious automotive market, adopted by Lexus with 966 vehicles (742). Volvo ranked third with 852 vehicles bought (469). In the meantime, BMW reported that it had bought 661 vehicles (520), Porsche 411 (175), and Audi 254 (235).
Solely Land Rover reported a gross sales drop from 159 vehicles in H1 2021 to 108 in H1 2022. Chinese language Hongqi bought 60 merchandise.
Analysts mentioned the variety of luxurious vehicles bought within the first half of the yr was increased than that of the identical interval of 2019, earlier than the Covid-19 outbreak.
Haxaco, which distributes Mercedes vehicles, reported that the collected internet income in H1 elevated by 19.4 p.c in H1 to VND3.06 trillion, which got here principally from automotive buying and selling (92.7 p.c, VND2.972 trillion), up 18.8 p.c. The post-tax revenue elevated by 120.3 p.c to VND135 billion.
Mercedes Benz is the one luxurious model that has a manufacturing unit in Vietnam. It focuses on assembling sedans (C-Class, E-Class and S-Class) and five-seat SUV – GLC. The 50 p.c lower in car registration tax legitimate till the tip of Could 2022 has helped improve gross sales. CBU (full constructed unit) imports weren’t topic to the coverage, however gross sales elevated.
A consultant of a luxurious automotive distribution firm mentioned the availability of CBU imports is smaller than demand presently. Purchasers ordering sure fashions have been informed to attend 3-6 months for supply.
He mentioned all producers are dealing with difficulties due to provide chain disruptions. If there had been sufficient vehicles for immediate supply, gross sales would have been a lot increased.
In late 2021, the luxurious automotive market grew to become busy once more with lots of fashions launched to organize for the 2022 sale season.
In December 2021, Volvo Automotive Vietnam launched a group of six new fashions. The XC60 Recharge, V60 Cross Nation and S90L Inscription confirmed important enhancements.
XC60 Recharge is excellent with an engine for petrol and electrical energy and capability of 408 horsepower. V60 Cross Nation is supplied with off-road mode and has a capability of 250 horsepower. It’s a mid-size luxurious sedan.
In January 2022, Lexus launched the F model in Vietnam with three fashions bearing the F Sport badge, together with IS 300 F Sport, ES 250 F Sport and RX 300 F Sport. All F Sport variations are about VND100 million dearer than normal variations. The three fashions have retail costs of VND2.56 billion, VND2.64 billion and VND3.3 billion, respectively.
Mercedes Benz Vietnam in late April launched six strategic product strains for 2022. These are favourite fashions and promoting nicely on the planet, particularly the next-generation C-Class, Maybach S 450, Maybach GLS, AMG GLA 45S, AMG SL and EQS, an electrical automotive.
The largest impediment for luxurious vehicles in Vietnam is the excessive luxurious tax as compared with cheaper vehicles. The merchandise principally goal high-income earners.
Luxurious vehicles with a cylinder capability of three.0-6.0L are taxed 90-160 p.c. Nevertheless, analysts mentioned the variety of rich in Vietnam has elevated quickly and the luxurious automotive market has lots of potential.
The Wealth Report 2021 launched by Knight Frank confirmed that Vietnam has 390 ultra-wealthy folks. It’s anticipated that the expansion fee of the ultra-wealthy neighborhood in Vietnam might be 31 p.c by 2025, which signifies that about 511 folks could have belongings value over $30 million and 25,800 greater than $1 million. Which means the focused shoppers of luxurious vehicles would improve quickly.
Analysts say that luxurious items buying energy has recovered and the luxurious market might be very bustling in H2, particularly within the final months of the yr. The luxurious automotive market is forecast to extend by 8-10 p.c in comparison with 2021 due to the financial restoration.