Vietnamese businesses run a race for the right to distribute super-cars

Vietnamese car trade companies are running a race to become the official Vietnamese distributors of some famous car brands which still do not have showrooms in Vietnam.

The result of the race for the right to distribute Toyota’s Lexus brand cars proves to be the most awaiting now in Vietnam. Though the door is opened widely to all Toyota Vietnam’s existing agents, it is not easy to catch the eye of the brand’s owner.

According to a car dealer, in order to become an official distributor for famous brands, agents must have the retail premises of no less than 3500 square meters which needs to be located on the roads, where the showrooms of other car brands are situated. Also, distributors need to have modern equipment and material facilities that serve and sale and marketing, worth up to hundreds of billions of dong.

“In general, it is not easy to satisfy the requirements set by the car brands’ owners,” he said. Especially, he said, the existing agents of Toyota Vietnam may have to join forces with other parents in order to satisfy the requirements.

“It will not happen that the existing agents of Toyota can display Lexus cars at their showrooms. Lexus distributors must set up completely new showrooms which can meet the strict requirements, like all other Lexus showrooms all over the world,” Thoi bao Kinh te Vietnam quoted a source from Toyota Vietnam as saying.

However, Vietnamese businesses still cherish the ambitious plans to become the official agents of Lexus. Obtaining the right to open showrooms and provide maintenance services for Lexus brand is considered by the business circle as a “good deal”, because to date, Lexus still has not had any official showroom.

Unofficial statistics showed that in 2007-2010, about 5700 cars with Lexus brand were imported to Vietnam, the number which was higher than any number of imports of any super-car brands. The figure shows the fat profit businessmen would be able to make when becoming the official distributors of Lexus. Especially, money will not only come from the sale of brand new cars, but also from maintenance services.

In general, the owners of Lexus cars are high income earners, and they will not regret their money being spent on the genuine services provided by the manufacturer.

Thoi bao Kinh te Vietnam has quoted its sources as saying that the selection of official distributors for Lexus may complete by the end of the year. However, it will take one year more to complete the construction and installation of material facilities for the showroom. If so, the brand will only be able to make its official presence in Vietnam by early 2013, with two showrooms to be opened in Hanoi and HCM City.

Besides Lexus, other luxury car brands are also moving ahead in the competition to expand their market share in Vietnam, a newly emerging attractive market. When introducing the Audi A7 Sportback in late August, Tran Tan Trung, General Director of Lien A International, the official distributor of Audi in Vietnam, said that 223 Audis were sold in 2010, while the figure is expected to be double this year.

In early 2011, Laurent Genet, General Director of A Chau Company, the official Audi importer, told the press that after three years of doing business in Vietnam, nearly 300 Audis were sold from October 2008 to the end of 2010, with the sales of the next year double that of the previous year.

The competition for scrambling for clients is getting stiffer among the car brands from Germany such as Audi, BMW, and Mercedes or Lexus.

A director of a company which trades German cars has revealed that the company is considering the measures to compete with Lexus.

“Lexus would be a big name in the market segment of products worth less than 100,000 dollars. However, things will be different in the market segment of the more-valuable products. In the world, German cars are still more favored,” he said.

He went on to say that in the US market, which is considered the “battle field” of Lexus, Lexus cars also had to struggle with German brand cars.

Source: TBKTVN

Tags: Vietnam automotive, Vietnam automotive industry, Vietnam autos market, Vietnam car imports