Home Enterprise “Enhancing Value-Added Services: Savico’s Shareholder Meeting Emphasizes Innovation with Car Rental Ventures.”

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“Enhancing Value-Added Services: Savico’s Shareholder Meeting Emphasizes Innovation with Car Rental Ventures.”

Administrator

17 May, 2025

Savico’s 2025 Annual General Meeting took place on the afternoon of May 16th. Photo: Tu Kinh

At the 2025 Annual General Meeting held on May 16th, Chairman Ngo Duc Vu assessed that the automotive market is gradually recovering but facing increasingly fierce competition from Chinese electric vehicle manufacturers and the expansion of VinFast. In this context, Savico determined that it could not stand idly by and has proactively expanded its investments, particularly in showrooms of the Lynk & Co brand.

In 2024, business performance improved with a sales volume of 40.3 thousand vehicles, a 10% increase compared to the previous year. Revenue reached over 24.7 thousand billion VND, a 19% increase, and net profit was 100 billion VND, 3.4 times higher than the same period. The number of showrooms across the system increased to 106, helping Savico maintain its leading position in the market with a 13.6% market share.

Entering 2025, the company set a target of selling 42.5 thousand vehicles, a 5% increase. Revenue is expected to reach 29.7 thousand billion VND, a 20% increase, but net profit is expected to decrease by 17%, to 83 billion VND. The dividend continues to be maintained at 5% of charter capital. The management team stated that the plan has taken into account unfavorable factors such as the trend of decreasing selling prices, intensifying competition, and the expiration of the policy on reduced registration fees.

This year, Savico, along with its parent company Tasco Auto, will continue to expand the network of showrooms distributing Geely and Lynk & Co vehicles. The company expects to break even in 2025 and gradually recognize profits after the CKD vehicle assembly plant of Tasco Auto in Thai Binh operates stably after one year.

Along with vehicle distribution, Savico promotes the development of after-sales services, an area considered to have high profit margins, ranging from 20-40%. Notably, the used car segment is seen as a highlight as it is not directly competed with new cars and usually brings double the profit margin.

Chairman Ngo Duc Vu stated, “The vehicle business will continue to face fierce competition, but the accompanying after-sales services have a longer life cycle and greater profit potential. This will be Savico’s strategic focus in the next phase.”

Currently, Savico has cooperated with its member company, Carpla, to develop an e-commerce platform specializing in certified used cars with warranties, Carpla e-commerce. Transactions on this platform are increasing rapidly, indicating positive signals from the market. Financial and insurance services and the Carpla Service repair system are also being invested in to build a solid support network for the core automotive business.

A new plan announced by Savico at the meeting is the pilot of a car rental model. “In the future, customers can simply go to the airport, open an application developed by a unit in the Savico ecosystem to rent a car and self-drive, similar to how hotel rooms are booked today,” said Mr. Vu.

In terms of operations, Savico continues its restructuring strategy by investing in efficient business units while withdrawing from or closing down inefficient ones. Regarding the motorcycle business, which accounts for a small proportion of revenue and profit, the company maintains stable operations and is ready to make adjustments or collaborations if suitable opportunities arise.

Regarding the dividend payment plan, the shareholders approved the issuance of over 26.6 million shares to pay 2024 dividends at a ratio of 10:4, from the source of after-tax profit not yet distributed. The implementation time is expected to be in 2025. Previously, the company paid the first cash dividend with a ratio of 5%.

This year’s meeting also proceeded to elect the Board of Directors and Supervisory Board for the term 2025-2030. The old members, including Mr. Nguyen Ngoc Chau, Mr. Ngo Van Danh, Mr. Vu Dinh Do, Mr. Ngo Duc Vu, and Mr. Tran Quang Truong, continue to be trusted. The two new members are Mr. Nguyen Hai Ha – General Director of Savico and Mr. Nguyen Van Oanh – Director of Tasco Nam Thai Joint Stock Company. Mr. Ngo Duc Vu was re-elected as Chairman of the Board of Directors.

Meanwhile, Ms. Bui Thi Nhu Quynh continues to hold the position of Chief Supervisory Board, along with Mr. Ngo Hoa and Ms. Tran Thi Ha Thu as members.