Audi racing into local auto market

How have the sales of Audi in Vietnam gone since January?

Worldwide Audi AG’s sales have been growing, strengthening Audi’s global premium market position in 2013’s second quarter. With global deliveries since January reaching  503,000 units, up 6.7 per cent, the dynamics in North America and Asia support worldwide growth impetus for the Audi brand. In 2013, the Audi Q3, Q5 and Q7 SUV models continued to strengthen business.

Audi Vietnam sales followed the same positive development. Deliveries of the new Audi Q5 are boosting our 2013 sales performance. Audi sales in Vietnam year to date 2013 grew sizeably. However, comparing 2013 to 2012 is misleading as until May last year we did not have neither the new Audi A4 nor the A5 Sportback available for sale in Vietnam.

It is likely that this year will be another tough year for Vietnam’s economy. How can you increase your sales?

Audi will continue to make unique and attractive offers to customers in Vietnam. For example, Audi is the only premium car brand offering unlimited mileage warranty during three years. To be successful in any business in any market, customers expectations should be the ultimate guide. Audi Vietnam just made a sizeable investment in Autoline, a new dealer management system, to better serve our customers nationwide. We will continue to improve service availability for maintenance and repair.

Last year within CFAO Group, our majority shareholder, Audi Vietnam reached the top ten investor in training worldwide. In addition, we will continue to develop our workforce professionally at the Audi importer and Audi dealer branches to reach new heights.

We are already benefiting from the opening of our  new Audi Hanoi Terminal since last January. For Audi customers there, we tripled our capacity and now offer bodywork and water-based painting. Audi Hanoi new car sales and after-sales service keep increasing strongly.

What do you think about luxury auto market at this time?

In the year to date, the luxury car market is back to 2011’s level which is better than the mainstream car market.  For Audi in Vietnam, luxury vehicle sales tend to originate from individual customers and private business owners and entrepreneurs. Those typical Audi customers are more resilient to downturns in the Vietnamese economy. We hardly sell to fleets and as such are less vulnerable than our competitors. Luxury cars customers like quality products.

Our customers like the progressiveness of Audi design. They like the sophistication and luxury of materials used. The sporty dimensions also appeals to them. Wealthy Vietnamese also perceive cars as a way to position themselves in society. In Vietnam over 85 per cent of Audi cars are sold with quattro. Even our Audi A8L limousine offers quattro all-wheel drive.

We can see in a limited luxury market, the number of players and models is going up with each manufacturer and dealer wanting a share of the pie. Recently, Rolls-Royce announced to find a dealer in Vietnam, which will open its first store in Hanoi in September. Will this create intense competition in the luxury auto market?

As the luxury market is a niche, competition is already active. At the last Vietnam Motor Show in Hanoi, visitors could see Audi, BMW and Mercedes-Benz. It will be the same at Vietnam motor Show 2013 in Ho Chi Minh City end October.  Fair competition is good for the brand and the customers. Fair competition is dynamic and a factor of change. Audi wishes all the best of luck to Rolls-Royce and others premium brands coming to Vietnam.

What are Audi's plans to strengthen its footprint in Vietnam?

We will be celebrating five years of Audi in Vietnam in 2013. Since our start, we had to double the office space and headcount of Audi importer in Vietnam. This year, we invested in a completely new Audi Hanoi designed as per the latest Audi Terminal design. In over 3,3000 square metres, the new Audi Hanoi is three times bigger than the previous site and new staff has been hired. Audi’s commitment in Hanoi is definitely long term. Audi Ho Chi Minh City - the birth place of Audi in Vietnam – keeps increasing its business to the point that expansion may have to be considered. Our ever-growing Audi customers base is pointing at future development to continue expanding.

This is likely to be Audi’s second step towards long term commitment. Over the last five years, central Vietnam market has steadily been developing. From 5 per cent of the total national market it now represents 10 to 20 per cent of Vietnam automotive market volume. Central Vietnam represents close to 20 per cent of the commercial vehicles market like pick-up and trucks. With 10 to 15 per cent of the passenger cars, sport utility vehicles and multi-purpose vehicles sold in central Vietnam, we reckon that 10 per cent of all new luxury vehicles are now sold in central Vietnam.

We see the future potential demand to continue to grow for commercial vehicles as Vietnam will develop the central corridor from Vietnam to Cambodia and Laos. For Audi, central Vietnam could become one day the next new home of quattro.