The 'sadness' of the auto industry: Luxury car 'bosses' report losses, some places have negative profits for 11 consecutive quarters

At the start of the third quarter financial reporting season in the automobile industry, Haxaco and Giai Phong Auto both reported losses. The companies said that competitive pressure has increased, especially in the context of increased incentives and financial support policies for competitors.

Haxaco is the leading distributor of luxury cars, accounting for about 40% of the Mercedes-Benz market share in Vietnam - Photo: HAX

Luxury car boss reports loss

According to the financial report for the third quarter of 2025, Hang Xanh Auto Service Joint Stock Company (Haxaco - HAX) recorded a 25% decrease in net revenue to VND 1,150 billion. Gross profit dropped sharply by 66% to VND 60 billion, equivalent to a gross profit margin of only 5.2%.

All expenses during the period recorded a significant increase, in which financial expenses increased by 83%, business management expenses increased by 34% and sales expenses increased by 6% compared to the same period. At the same time, other profits decreased by 23%, down to 20 billion VND.

These fluctuations caused the company to record a loss after tax of nearly 26 billion VND, in contrast to the profit of more than 90 billion VND in the same period last year. This is also the first quarter the company has returned to a loss-making state since the third quarter of 2021.

Accumulated in the first 9 months of the year, Haxaco witnessed a 15% decrease in revenue to 3,137 billion VND.

The loss in the last period caused the accumulated profit from the beginning of the year to only 1 billion VND, a 99% plunge compared to the same period.

This year, the distributor of luxury Mercedes Benz cars and popular MG cars aims to have pre-tax profit of 260 billion VND.

With current results, Haxaco has only completed about 6% of the plan.

Due to the poor business situation, HAX shares have decreased significantly in the past 3 months. Currently, HAX shares are priced at 11,050 VND/share, down more than 27% in the past quarter.

Haxaco said the luxury car segment in the third quarter of 2025 will continue to be affected by the trend of tightening consumer spending and increased competitive pressure from other high-end brands, especially in the context of preferential policies and financial support for competitors being promoted.

Notably, according to Haxaco, the auto market has recorded many fluctuations, with a series of strong discount programs not only in the luxury car segment but also spreading to the popular segment.

At Haxaco, Mercedes-Benz car distribution is carried out through the parent company, while MG car division is handled by subsidiaries.

On the stock market, Haxaco's HAX shares have decreased about 10% in the past week, to the price range of VND 11,050/share.

Giai Phong Auto reported losses for 11 consecutive quarters.

Giai Phong Auto Corporation (GGG) also announced its financial report for the third quarter of 2025, recording another quarter of losses, bringing the total accumulated loss as of September 30 to nearly VND357 billion.

In this quarter, the company recorded net revenue of nearly VND52 billion from sales activities, an improvement compared to the same period last year when there was no revenue.

However, after deducting cost of goods sold, gross profit only reached 983 million VND, not enough to cover financial, sales and business management costs.

As a result, the company suffered a loss after tax of nearly 2 billion VND, marking the 11th consecutive quarter of losses since the beginning of 2023.

In the first 9 months of the year, Giai Phong Auto recorded a loss after tax of nearly 11 billion VND. Total assets as of the end of September reached 49 billion VND, up 45% compared to the beginning of the year. Notably, inventories increased sharply to more than 28 billion VND, 2.3 times higher than at the beginning of the year.

However, the company's total liabilities remain high, nearly 111 billion VND, up 31% compared to the beginning of the year. Outstanding loans decreased slightly by 3%, to more than 54 billion VND, of which the majority are personal loans, while bank loans only account for nearly 7 billion VND.

On the stock market, GGG shares of Giai Phong Auto had almost no transactions from October 13 to 15, staying at VND4,200/share, after falling from VND4,800 to VND4,100/share on October 10.

LINH NGUYEN

Source: https://tuoitre.vn/noi-buon-nganh-o-to-trum-xe-sang-bao-lo-co-noi-loi-nhuan-am-11-quy-lien-tiep-20251015171924363.htm