The Luxury Car Market in Vietnam: Poised for Acceleration

In addition to the trio of German luxury cars, Vietnamese customers have other choices in the luxury car segment, including Porsche, Volvo, Land Rover, and Lexus.

Similar to the general situation in many international markets, most of these brands are also facing difficulties in Vietnam recently and are seeking opportunities to accelerate.

Waiting for Volvo and Porsche to break through

Compared to its top position in previous years, Volvo is going through a relatively challenging 2024, mainly due to the economic downturn, which has reduced customer purchasing power.

The Swedish automaker has also been slow to introduce new cars, making the Volvo lineup in Vietnam quite modest and lacking highlights.

Compared to its competitors in the luxury segment, Volvo is considered quicker to introduce hybrid models such as the XC60 Recharge, XC90 Recharge, and S90 Recharge.

The brand’s all-electric range in Vietnam still lacks representation, causing Volvo to be seen as slower than competitors such as Audi, Mercedes-Benz, and BMW.

The fact that all-electric vehicles are not available in time is also believed to be the reason why Volvo decided not to participate in VMS 2024.

Volvo leads the luxury segment in hybrid vehicles but is slow with all-electric cars.

Safety is a hallmark of Volvo cars, and in Vietnam, this remains the most prominent feature. A typical example is the recent accident on Phu My bridge in August, where the driver of a Volvo XC90 survived despite the SUV being crushed, deformed, and then burned and completely destroyed.

Tasco has just completed the acquisition of Volvo, thereby becoming the unit that distributes up to four car brands of the Geely Group to Vietnamese customers, including Volvo, Lynk & Co, as well as Zeekr and Geely Auto in the future.

In theory, the acquisition of the distribution rights of a range of brands from the same group will enable Tasco to have an in-depth understanding of each car manufacturer in general and Volvo in particular, as well as demonstrate the long-term commitment of the brands to Vietnamese customers.

However, this may also cause Tasco to disperse resources for the four Geely Group brands, in addition to several other car brands that the company is distributing, which may reduce the level of attention given to Volvo.

The competitiveness of Volvo’s all-electric vehicles in Vietnam may be affected as Tasco prepares to distribute Zeekr, a luxury all-electric car brand that has a “sibling” relationship with Volvo and Lynk & Co.

Overall, Volvo will remain a luxury car brand with a strong position in Vietnam. With Tasco joining hands with Geely to establish a domestic car assembly plant, it is possible that Volvo cars will be assembled domestically, making their prices more competitive.

Tasco brings Zeekr to Vietnam, likely to directly impact the market share of Volvo electric vehicles in the future. Illustration: Volvo.

Similar to Volvo, Porsche also faces difficulties in Vietnam this year due to economic fluctuations.

However, Porsche will continue to introduce new versions of its range of luxury sports cars in Vietnam, with the Macan and Cayenne SUVs as the mainstays.

According to information provided by the company, Porsche will continue to introduce new car models to Vietnamese customers, from gasoline to all-electric vehicles.

Currently, Porsche is officially distributing many models of luxury sports cars in Vietnam, including the Macan, Cayenne, Taycan, Panamera, 911, and 718.

Porsche Macan.

Porsche’s sports cars are displayed at Porsche Saigon Center (District 7, Ho Chi Minh City), Porsche Hanoi Center (Long Bien District, Hanoi), and Porsche Studio Hanoi in Ba Dinh District, Hanoi.

The stability of Land Rover and Lexus

In Vietnam, Land Rover’s main product line is the Range Rover with the Evoque, Velar, and Sport versions. In addition, Vietnamese customers also pay attention to the Defender line, including the 90, 110, and 130 versions.

Land Rover plans to inaugurate an international-standard showroom in Ho Chi Minh City, along with the Phu Thai Mobility Center in Hanoi.

Range Rover is the main product line of Land Rover in Vietnam.

Currently, Land Rover has three showrooms, service centers, and studios in Hanoi, located in Long Bien, Thanh Xuan, and Hoan Kiem districts. In Ho Chi Minh City, the British luxury car brand has a service center and a showroom, all located in District 7.

Land Rover also regularly organizes private experience journeys for its customers to create a unique difference.

In terms of sales, Land Rover in Vietnam is currently imported and distributed by Phu Thai Mobility, a member company of Pon Holdings, since 2019. Although it receives significant investment from Pon Holdings, Land Rover’s sales performance in Vietnam is considered not too impressive.

However, Land Rover still has its own position due to its product segment being higher than the average luxury car segment in Vietnam. This group of vehicles also has a certain customer base.

For its part, Lexus – the luxury brand of Toyota – is quite discreet in the market. The brand has just introduced the LM and GX models to Vietnamese customers, but its main products in terms of sales are still sedans and SUVs.

Overall, Lexus has a slight advantage due to its own customer base and a diverse range of products in different segments and price ranges to meet the diverse needs of customers.

Lexus LM 500h was launched in Vietnam at the end of March. Photo: Lexus.

In the sedan segment, Vietnamese customers have the choice of the Lexus IS (from VND2.13 billion), Lexus ES (from VND2.62 billion), or the Lexus LS with a starting price of VND7.65 billion. The brand’s SUV lineup includes the Lexus RX (from VND3.43 billion), Lexus GX (VND6.2 billion), and Lexus LX, starting at VND8.5 billion.

In addition, the Lexus LM is also an option in the luxury MPV segment, using a hybrid engine with two versions of four or six seats, with a starting price of VND7.29 billion.

In general, the luxury car segment in Vietnam, in particular, and the entire market, in general, is having a relatively difficult 2024. The efforts of each car manufacturer may help to recover somewhat in the last months of the year, but positive changes are likely to come only in the next year.

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