How will Savico SVC do business in 2024?

2024 is considered a vibrant year for the Vietnamese automobile market when new car models continuously appear along with the strong entry of major car manufacturers from China. The Government 's preferential policy of 50% registration tax for assembled cars from September to the end of November has also created momentum, promoting a significant increase in car consumption output. The total market output in 2024 reached 407,310 vehicles, an increase of 10.25% over the same period (according to VAMA + HTV), of which CKD vehicles decreased by 1%, CBU vehicles increased by 31%.

With timely adjustments in business strategy and appropriate management in each stage, in 2024, Savico achieved an output of 40,315 vehicles, reaching 110% of the plan and increasing by 10% over the same period, continuing to maintain the No. 1 position in market share with 13.6%, an increase of 0.3 points compared to 2023.

On May 16, the 2025 Annual General Meeting of Shareholders (AGM) of Saigon General Services Corporation (Savico - stock code SVC) took place in Ho Chi Minh City. With high consensus and unanimity, the meeting approved all reports, proposals and many other important contents.

In 2024, Savico also officially invested and became an agent of the Lynk & Co automobile brand with showrooms in Can Tho , Ha Long, Thanh Hoa, Quang Ninh, bringing the total number of automobile showrooms of the entire system to 106 showrooms nationwide. Currently, Savico is distributing 16 car brands including international brands such as Toyota, Ford, Mitsubishi..., luxury car brand Volvo and famous Chinese brands such as Lynk & Co, Geely, Zeekr...

In the fierce competition of the economic market, pressure on selling prices, rapidly increasing selling costs and narrowing gross profit margins, the company has also implemented a series of measures to streamline costs, increase revenue and efficiency in the service sector and value-added products to partially offset the decline in efficiency in new car sales.

Savico 2025 Shareholders' Meeting on May 16.

Consolidated revenue of the whole system reached VND 24,772 billion, reaching 102% of the 2024 plan, up 19% over the same period. Consolidated pre-tax profit reached VND 262 billion, reaching 152% of the yearly plan and up 435% over the same period. For the motorbike business segment, vehicle output in 2024 reached 7,649 vehicles, down 11.5% over the same period, mainly decreasing in vehicles sold in batches to increase gross profit, reaching VND 322 billion in revenue. On the contrary, in the real estate segment, revenue in 2024 recorded good growth, reaching VND 94,426 billion, up 107% over the plan, pre-tax profit exceeded 10%.

The company has also completed providing a comprehensive chain of car services for customers coming to Savico showrooms: from buying and selling new and used cars to maintenance, repair, car spa, registration, inspection, loans and car rental services...

According to forecasts, in 2025, the world economy will grow steadily but below the long-term average, global inflation tends to decrease, global trade recovers. In Vietnam, import tax rates on cars from European, American, and Japanese markets will decrease from 39% - 42.5% to 31.2% - 35.4%. Car supply will be abundant, Chinese brands will have a full year of sales with plans to launch many new models and campaigns of other major brands.

However, the automobile market also faces a number of challenges, risks and impacts on fierce competition with the price reduction race of manufacturers and the market's absorption capacity. In that context, Savico's Board of Directors unanimously approved the 2025 business target in a cautious direction with an output of 42,495 vehicles, consolidated revenue reaching more than VND 29,700 billion, an increase of 20% compared to the business results in 2024.

To achieve that goal, in addition to solutions to improve business models, optimize resources in the ecosystem, promote service exploitation efficiency... Savico's board of directors identified one of the strategic investment activities as continuing to participate with Tasco Auto to develop the network, make new investments in the Geely system and continue to expand the Lynk & Co and Zeekrs dealer system. Savico, as a major brand with many years of experience in the field of automobile distribution in Vietnam, has a good understanding of the local market and a large customer base, will be an advantage that will help invest and expand the Geely and Lynk & Co showroom system at optimal costs, ensuring efficiency.

The goal in 2025 is that Savico will work with Tasco Auto to develop and build 80 more showrooms, bringing the total number of showrooms to 186 nationwide. Developing new dealers and new brands in the period of 2025 - 2030 is also one of the key solutions for Savico to maintain its market share and leading position in the auto retail dealer system with partners and the market.

The congress also approved the re-election of the 2025-2030 term and the change of the company's headquarters. Savico will change its headquarters from 91 Pasteur, Ben Nghe Ward, District 1 to 220Bis Nguyen Huu Canh, Ward 22, Binh Thanh District, Ho Chi Minh City.

Recently, Savico announced its first quarter business results with many positive signals. The company recorded net revenue of more than VND5,500 billion, up 36% over the same period. Revenue from the service sector, including activities related to automobiles and other services, reached VND628 billion, up nearly 50% over the same period, with total assets exceeding VND9,100 billion.

Nguyen Duc

Source: https://doanhnghiepvn.vn/kinh-te/kinh-doanh/savico-svc-kinh-doanh-ra-sao-trong-nam-2024/20250517023200095