Auto distributors posted record profits last year as demand recovered after a two-year slump due to Covid-19.
Savico, which distributes Toyota, Honda, Ford and other cars, reported record profits of VND688 billion ($29.34 million), which represents a 2.7-fold rise from 2021 and is larger than the combined figures of the previous two years.
Haxaco, the main Mercedes distributor in Vietnam, saw pre-tax profits nearly double to VND300 million, also a record figure, mostly thanks to high demand in the first nine months.
City Auto, distributor of Ford cars, saw pre-tax profit double to VND145 billion, the highest since the company listed on the Ho Chi Minh Stock Exchange in 2017.
Its revenues rose by 40% to VND6.36 trillion.
TC Group, the assembler and distributor of Hyundai in Vietnam, estimated its revenues at VND118 trillion after a 15.6% increase in sales to 81,500 units. The company has not released its profit figures.
The 50% cut in registration fees – of 10-12% of the price — on locally assembled cars, in the first five months of last year helped boost demand post-Covid.
There was a temporary supply shortage in the first half of the year.
“Semiconductor chip shortages have hampered global production, but created opportunities for dealers to increase prices by up to 50%,” analysts at SSI Research said.
“A surge in demand since the end of the pandemic boosted vehicle sales in 2022.”
In the last quarter, however, the market was dampened by a lack of bank credit.
SSI Research forecast sales to increase by a modest 5% this year, saying economic difficulties would hit demand.
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