Leaders are divesting their holdings one after another.

Tran Quoc Hai, Deputy General Director and member of the Board of Directors of Haxaco (HAX) Automotive Services Joint Stock Company, has registered to sell 1.4 million HAX shares from September 23rd to October 22nd. If the transaction is completed, Mr. Hai's shareholding in Haxaco will decrease to nearly 1.24 million units, equivalent to 1.15% of the company's shares.

Mr. Tran Quoc Hai currently holds nearly 2.64 million HAX shares, equivalent to 2.46% of the company's stock.

Mr. Hai registered to sell over 50% of his shares amidst a recent sharp increase in Haxaco's stock price, from 12,000 VND/share at the beginning of the year and 15,000 VND/share at the end of July to the current 17,000 VND/share.

If the sale is successful at the current price, Mr. Hai will earn nearly 24 billion VND.

Previously, Haxaco Chairman Do Tien Dung registered to sell 700,000 out of his nearly 18.8 million HAX shares (equivalent to nearly 17.5%). According to the announcement, Mr. Dung sold 100,000 HAX shares between July 8 and 31.

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Mr. Tran Quoc Hai registered to sell 1.4 million HAX shares from September 23rd to October 22nd.

The reason Mr. Tran Quoc Hai and Mr. Dung sold their HAX shares was to restructure their investment portfolios.

Mr. Tran Quoc Hai (51 years old) is a long-time leader at Haxaco. Mr. Hai holds a degree in mechanical engineering and has worked as a service consultant at Haxaco since 2000. He later became the service director in 2011, then Deputy General Director, and from 2016 to the present, he has also held the position of a member of the Board of Directors.

Haxaco (HAX), a leading Mercedes-Benz dealer in Vietnam, has recently expanded into distributing mid-range MG cars from the UK, owned by SAIC (China).

Recently, Hang Xanh Auto has recorded less than positive business results.

According to HAX, 2023 was a difficult year for automobile manufacturers and distributors in the Vietnamese market. The economic recession and people tightening their spending led to a sharp decline in car sales despite significant price reductions for many models. As one of the leading distributors of luxury cars, Haxaco was heavily impacted by this.

Last year, Haxaco only distributed 1,099 vehicles, a sharp decrease compared to 2022, indicating an increasingly fierce competition in the automotive market.

However, minimizing inventory and focusing on service activities since mid-year has helped the company avoid losses and achieve positive profits. As a result, in 2023, HAX's revenue reached VND 3,982 billion, a 41% decrease compared to the same period last year. Pre-tax profit reached VND 48 billion, equivalent to 15% of the planned target.

The "tycoon" switches to cheap Chinese cars.

Haxaco recorded positive business results in the first half of 2024, with revenue increasing from nearly VND 1,790 billion in the same period last year to over VND 2,160 billion, and after-tax profit increasing from over VND 6.2 billion to nearly VND 53.8 billion. After-tax profit in the second quarter of 2024 reached nearly VND 22 billion, compared to over VND 2.7 billion in the same period last year. This represents an approximately eightfold increase.

Mr. Do Tien Dung estimates that in the second quarter of 2024, the distribution of MG products will generate 90% of the company's profits.

Thus, facing difficulties selling luxury Mercedes cars in Vietnam, Haxaco has focused on selling the lower-priced MG line from the Chinese manufacturer SAIC.

At the end of September 2023, Haxaco, together with SAIC Motor Vietnam Co., Ltd., inaugurated MG's flagship showroom in Ho Chi Minh City, the largest and most impressive MG showroom in Vietnam.

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The MG4 EV – an electric vehicle model – made its debut at the Vietnam Motorshow 2022.

Haxaco has held a large market share in the Mercedes-Benz Vietnam dealership network for many years, with 5 dealerships in 3 major cities: Ho Chi Minh City, Hanoi , and Can Tho.

In its strategic direction, Chairman Do Tien Dung's company continues to maintain its position as the leading distributor of Mercedes-Benz in Vietnam. However, in addition to distributing luxury cars, the company is also expanding its distribution of MG vehicles – "walking on two legs for sustainable development".

Currently, Haxaco Group has 6 MG dealerships in Ho Chi Minh City, Hanoi, Can Tho, and Bac Giang , and plans to open more MG dealerships in Bac Ninh, Dong Nai, Da Nang, etc. The company's goal is to have 10 to 12 MG dealerships nationwide by the end of this year.

It's clear that Haxaco is "surviving" thanks to cheap Chinese cars. MG's car models are considered to have a high competitive advantage due to low car loan interest rates and relatively affordable prices, thereby stimulating demand for automobiles.

However, Haxaco assesses that competition in the Vietnamese automotive industry is extremely fierce and complex, with the presence of many global brands, from mainstream to luxury cars, as well as the emergence of new models such as electric vehicles. The diverse market offers consumers more choices but also poses significant challenges for automotive businesses, including Haxaco.

Businesses must compete not only on price but also on product quality, after-sales service, and technological innovation. Competition comes not only from established brands but also from emerging brands with flexible pricing strategies and the adoption of new technologies.

However, it's not just luxury car sellers who are struggling; some businesses selling affordable cars are also facing difficulties.

After a year of selling Chinese electric vehicles, TMT Motors (TMT) reported record losses in the second quarter and its ability to continue operating is being questioned. TMT is known for selling the inexpensive Chinese electric vehicle Wuling.

According to TMT's explanation, the economic recession, frozen real estate market, sharp decline in public investment, increased inflation risk, and people tightening their spending... have led to a sharp drop in car sales, despite businesses continuously lowering prices to clear inventory.

The Wuling Hongguang MiniEV is a popular small electric vehicle in China, having won the title of "World's Best-Selling Small Electric Car" for four consecutive years (2020-2023). It is produced by a joint venture between General Motors (USA), SAIC, and Wuling of China. However, in 2023, TMT only sold 591 units, equivalent to 11% of its target. This year, TMT aims to sell 1,016 units.

Vietnam's major automaker faces sluggish sales and heavy losses due to selling Chinese electric cars . After a year of distributing electric cars for the Chinese manufacturer Wuling Mini EV, TMT Auto JSC recorded a loss of over 90 billion VND in the second quarter - the highest loss in its operating history.