Auto distributors report record profits in 2022

By Anh Tu   February 3, 2023 | 12:28 am PT
Auto distributors report record profits in 2022
A Mercedes E300 AMG seen in Hanoi. Photo by VnExpress/Luong Dung
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 billion, 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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