Vietnam’s top Mercedes-Benz dealer reports profit drop amid luxury auto slump

The firm posted revenue of VND1.03 trillion (US$39.3 million), an eight-percent year-on-year decline, while its pre-tax profit fell 38 percent year on year to just over VND17.5 billion ($668,050).

Over the first six months of 2025, Haxaco recorded nearly VND2 trillion ($75.8 million) in revenue and VND40.3 billion ($1.5 million) in pre-tax profit, down eight percent and 42 percent year on year, respectively.

Haxaco chairman Do Tien Dung explained in a report sent to the State Securities Commission of Vietnam that the luxury car segment remained sluggish and had yet to show signs of recovery during the second quarter.

However, demand for non-luxury vehicles has started to pick up.

Despite this, rising lending interest expenses, increased operating costs, and the company's business expansion put pressure on its business results, according to Dung.

Failed land auction

The company had previously planned to auction a 6,282.6-square-meter plot of land on Vo Van Kiet Street in Ho Chi Minh City, with a minimum bid price of VND180 million ($6,860) per square meter.

At this price, Haxaco expected to generate over VND1,130 billion ($43.1 million).

However, the auction failed to attract any buyers.

By the close of registration on July 31, no potential bidders had submitted applications or deposits.

As a result, the scheduled auction for Tuesday was canceled.

In August 2022, the company acquired the land in a deal worth up to VND470 billion ($18 million) from N&T Investment JSC and Bui Trung Quan.

Haxaco planned to develop a mixed-use project combining a luxury car showroom, office space, and high-end residences on the land lot.

In May, Haxaco’s board of directors sought shareholder approval to authorize the executive management board to seek potential buyers in order to protect the company’s interests.

Deep discounts sweep luxury car market

Across Vietnam, luxury car dealers are slashing prices to offload unsold inventory – some dating back to 2022.

Brands including Audi and Mercedes-Benz are offering discounts and incentives worth hundreds of millions of Vietnamese dong to stimulate demand.

Since late July, Audi Vietnam has offered discounts of VND200 million ($7,630) on the Audi Q5, VND160 million ($6,100) on the Audi A6, VND130 million ($4,960) on the Audi Q7, and VND60 million ($2,290) on the Audi Q3.

Mercedes-Benz has also launched its own promotional campaign, offering discounts of up to VND250 million ($9,540) on high-end models like AMG, Maybach, and S-Class, alongside perks such as a year of free insurance and two years of maintenance vouchers.

Mercedes-Benz's electric lineup, including the EQS 450+ V1, EQS 580 4MATIC, and the Maybach EQS 680 SUV, is also being bundled with discounts or complimentary two-year charging packages.

Despite these efforts, many auto dealers in Ho Chi Minh City reported that cash flow remained constrained and that the stagnant real estate sector continued to dampen the high-end auto market.

Industry experts pointed out that luxury cars are highly sensitive to consumer sentiment and the financial confidence of upper- and middle-class buyers.

In uncertain investment climates, these customers tend to conserve cash rather than spend billions of dong on depreciating assets like automobiles.