Vast Market
With a population of over 100 million and a rapidly growing economy, Vietnam is a “fertile” market for businesses in the distribution and sale of cars, especially high-end cars. According to Mr. John Lloyd White, CEO of Vietnam Star Automobile, the exclusive distributor of Mercedes-Benz luxury cars, the ownership rate of Mercedes-Maybach per 1,000 cars in Vietnam is currently the highest in the world. The customer base for high-end cars at Vietnam Star Automobile is getting younger and is now under 30 years old. This is also the age group for first-time car buyers who come to Vietnam Star.
The company was established in 2005 and is a member of the prestigious Lei Shing Hong Automotive Group. In Vietnam, after 19 years of operation, Vietnam Star Automobile has developed rapidly and is now one of the leading authorized Mercedes-Benz distributors in the country, despite strong competition from many companies. Vietnam Star Automobile’s position has been affirmed through 16 major awards at the recent Mercedes-Benz Star Awards Vietnam 2024 certified by Mercedes-Benz.
The company’s competitive advantage comes from the strategy of “Bringing global standards refined into the auto retail market, tailored to local understanding”. Lei Shing Hong Automotive Group (LSHA), the parent company of Vietnam Star Automobile, is the world’s leading retailer of Mercedes-Benz cars, currently present in many countries and territories such as Taiwan, Mainland China (250 showrooms), Korea (about 30 showrooms), Germany, UK, Australia (25% market share) and Vietnam. The group is so famous that for every 10 Mercedes-Benz cars sold worldwide, 1 is distributed by Lei Shing Hong. Inheriting the standard sales criteria established by Lei Shing Hong for 55 years (since 1969), Vietnam Star Automobile easily brings a world-class luxury car shopping experience to Vietnamese consumers.
In addition, Vietnam Star Automobile’s advantage also comes from a team with extensive experience in the luxury car retail industry, understanding customers, the market and the competitive environment in Vietnam. Mr. John Lloyd White commented: “Vietnamese customers are very quality conscious. They know what they want before they enter the showroom. That’s why we have developed sophisticated tools to serve the customer experience well”.
MAR202X Standard Showroom System
Vietnam Star Automobile currently owns a series of showrooms that meet the MAR2020 standard in Vietnam. This is the latest standard that Mercedes-Benz applies to its global distribution system, where brand identity and customer experience are perfectly met. Currently, only 30% of showrooms in the world meet the MAR2020 standard and Vietnam Star Automobile owns the most showrooms meeting this standard in Vietnam with showrooms in Hanoi (Vietnam Star Hoan Kiem), Ho Chi Minh City (Vietnam Star Truong Chinh) and Binh Duong (Vietnam Star Binh Duong).
Vietnam Star Truong Chinh, located at 32 Tan Thang, Tan Ky Ward, Tan Phu District, Ho Chi Minh City
The company has also made efforts and achieved many achievements in distributing Mercedes-Benz to Vietnamese customers, increasing customer satisfaction index through showroom car sales, auto parts, maintenance services, and Mercedes-Benz car repairs according to Mercedes-Benz’s global standards.
What will the luxury car market be like in the next 5 years?
Assessing the luxury car market in 2024 and the next 5 years, Mr. John said that Vietnam has many opportunities for development as part of the “Lucky 7 Club” (Asian countries with expected growth rates of 7% each year), and at the same time has the potential to grow the fastest in Southeast Asia. The young business community in Vietnam is also extremely talented and dynamic.
Talking about the electric vehicle movement in Vietnam, Mr. John affirmed that Vietnamese customers are ready for electric vehicles, but the infrastructure is not yet ready, mainly due to the lack of charging stations as well as the ability to meet the large load capacity of electric vehicles (about 30% heavier than gasoline-powered vehicles) in parking areas. In preparation for the future of electric vehicles and to maintain its leading position, Vietnam Star Automobile has invested in fast chargers at all of its showrooms.
