Many car companies absent from Vietnam's biggest auto show

The 2024 auto show is no longer as exciting as previous years - Photo: VMS

High costs and low efficiency have forced many car manufacturers to rethink or even withdraw from this playground, reducing the expectations of consumers and car enthusiasts.

Luxury cars are absent, BYD "name is nowhere to be seen"

According to the plan, VMS 2024 will take place from October 23 to 27 at the Saigon Exhibition and Convention Center - SECC (District 7, Ho Chi Minh City). Initially, 13 car manufacturers confirmed to attend, including Ford, GAC, Honda, Isuzu, Mitsubishi, Skoda, Subaru, Suzuki, Toyota, Volkswagen, MG, BYD and Volvo.

However, according to the latest survey on September 14, there are only 9 car manufacturers left on the exhibition's official website including GAC, Isuzu, Mitsubishi, Skoda, Subaru, Suzuki, Toyota, MG, Honda along with GAZ - a commercial vehicle manufacturer.

The absence of famous brands such as Mercedes-Benz, Audi, Lexus, BMW and Volkswagen - which have always been the focus of previous exhibitions - has caused much regret. Other car manufacturers such as Hyundai, Kia, Mazda and VinFast also did not participate, making this year's exhibition lack the usual diversity and richness.

Mr. Nguyen Son, a regular customer attending auto shows, expressed his disappointment: "I am very interested in electric vehicles and internal combustion engine vehicles, especially famous brands like BYD. Initially, there was information that BYD would participate in the exhibition, but now there is no more information. It is a pity that this year's exhibition is no longer as diverse as before."

Mr. Vo Minh Luc, CEO of BYD Vietnam, said the company is still in the process of discussing with the organizers to make a final decision on whether to participate or not. This shows the careful consideration of the brands before the issue of cost and efficiency.

However, the outlook for the Vietnamese automobile industry is still considered positive. According to Mr. Vu Tan Cong - former General Secretary of the Vietnam Automobile Manufacturers Association, car consumption in Vietnam in 2024 is expected to reach 560,000 - 570,000 vehicles and may increase to 600,000 - 610,000 vehicles in 2025.

High cost, efficiency not as expected

One of the main reasons why many car manufacturers are no longer interested in VMS is that the participation cost is too high, while the results are unclear. According to the disclosure of car manufacturers, the cost for a booth at the exhibition can be from 5 to 7 billion VND, even up to tens of billions of VND if you want a large and impressive display location.

Not to mention ancillary costs such as electricity, booth decoration, personnel and many other items.

Brands such as Ford and Audi have officially withdrawn. A media representative of Ford Vietnam said the main reason is that the VMS exhibition is no longer suitable for the company's strategy and product launch plan.

Another German car company also expressed dissatisfaction with the business performance of previous exhibitions: "The investment costs for booths and marketing were huge, but the number of cars sold did not meet expectations, or even no cars were sold."

This problem is exacerbated by the fact that many exhibition visitors simply come to visit and browse, rather than intending to actually buy a car. Mixing booths of luxury car brands with popular cars and commercial vehicles in the same space also makes the exhibition lose its speciality and fails to attract the target customers of high-end car brands.

Mr. Vo Minh Luc also commented that while domestic auto exhibitions are gradually losing their appeal, auto exhibitions in neighboring countries, such as Thailand, are successful in all aspects. The exhibition in Thailand not only gathers all car brands but is also professionally organized on a large scale, attracting not only domestic customers but also international visitors.

Another reason why many car manufacturers are no longer interested in VMS is the lack of a large and professional enough infrastructure to meet the increasing display needs.

Although the number of products and car brands participating in the exhibition is increasing, the space and organization conditions are not enough to ensure that all car companies can display their products optimally. This not only affects the ability to reach customers but also makes the cost of renting space more expensive.

This situation poses many challenges for the VMS organizers in maintaining the exhibition's appeal and attracting the participation of car manufacturers in the future. To overcome this situation, there needs to be innovation in the organization, improve infrastructure and create real value for both car manufacturers and visitors.

The trend of organizing private exhibitions

In the context of the increasing cost of participating in a large exhibition like VMS but the effectiveness is not as expected, many car manufacturers have chosen to organize their own events, focusing on creating personalized experiences for customers. This not only helps manufacturers save costs but also helps them reach potential customers directly.

Mercedes-Benz is one of the pioneers in organizing individual events in Vietnam. Leaving VMS, the company announced that in October 2024 it will organize "The Avantgarde" event in Hanoi - where it invites potential customers to experience new car models directly.

Similarly, BMW has also organized many car experience events in major cities and tourist areas, creating conditions for customers to directly test drive and experience the products in a real environment.

Hosting private events allows luxury car brands to express their brand personality and get closer to their target audience. These events are often highly effective, easy to measure, and have a big impact on customers’ purchasing decisions.

Flexibility and creativity in market approach have helped car companies make the most of their advertising budget without having to spend too much on a big event like VMS.

Source: https://tuoitre.vn/nhieu-hang-xe-vang-mat-tai-show-dien-o-to-lon-nhat-viet-nam-20240914222411314.htm