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.
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