BMW’s Situation Analysis Report

(By members of the Oolong group)

Word Count: 4588 words

1
1. INTRODUCTION: (written by Dang Thanh Danh) 3

2. MARKETING ENVIRONMENT: 4
The Company (written by Nguyen Tran Hai Quan) 4
The Suppliers (written by Nguyen Tran Hai Quan) 5
Marketing Intermediaries (written by Nguyen Tran Hai Quan) 5
Customers (written by Nguyen Tran Hai Quan) 6
Competitors 6
Direct Competitors (written by Nguyen Tran Hai Quan) 6
Indirect Competitors (written by Nguyen Tran Hai Quan) 7
Public (written by Nguyen Tran Hai Quan) 7
Political Factors (written by Pham Trung Kien) 8
Economic Factors (written by Pham Trung Kien ) 8
Demographic Factors (written by Pham Trung Kien) 9

3. SWOT ANALYSIS: 9
Strengths (written by Nguyen Tran Hai Quan) 9
Weaknesses (written by Nguyen Tran Hai Quan) 10
Opportunities ( written by Pham Trung Kien ) 10
Threats (written by Pham Trung Kien) 11

4. CUSTOMER-DRIVEN MARKETING STRATEGY (STDP): 11

Segmentation: 11
Targeting:( written by Nguyen Cong Thanh, Do Xuan Vinh) 16
Differentiation: (written by Pham Trung Kien, Vu Dieu Linh) 17
Positioning: (written by Nguyen Tran Hai Quan) 19

5. CONCLUSION: ( written by Dang Thanh Danh, Nguyen Tran Hai Quan) 20

6. REFERENCES 22

‌7. APPENDICES: 27
Appendice 1 27
Appendice 2 28

2
1. INTRODUCTION: (written by Dang Thanh Danh)

Bayerische Motoren Werke AG, a motorcycle factory established in 1961, in Bavaria,

Germany. Franz Josef Popp (1886-1954)(DailyXe,n.d), first Director of BMW AG, who

carried the mission of laying the first foundation, brought BMW cars to the world market.

After the war, the rise of BMW showed many of the qualities and methods that made

German business successful (Horst Monnich, n.d). In the domestic market, in September

2017, BMW Asia officially announced BMW's signing of an open letter to express its

intention to choose Thaco to become an investor and importer of BMW, MINI and BMW-

Motorrad cars in the Vietnam market from January 1, 2018 (Vietnam, 2017). THACO is one

of the leading and largest automakers in Vietnam. After more than 20 years of development,

THACO has become a multi-industry group. The group operates in Five businesses,

including Mechanics and Automotive, Agriculture, Construction & Investment, Logistics, and

Commerce & Service. In December 2017, the first 55 BMW cars imported by THACO

Truong Hai landed at VICT International Port, District 7, Ho Chi Minh City (Thanh Phương,

2017).

As BMW calls the Sports Activity Vehicle (SAV), the BMW X Series are essentially luxury

SUVs. In Vietnam, the BMW X Series has been available since 2005 (Thuong Tam and

Giang Phan Ninh, 2020). Since the first car was launched, the BMW X series is considered

the complete version of the BMW family. In particular, BMW is one of the leading luxury car

manufacturers in this segment with the globally famous X Series. With a product range

stretching from the X1 to the X7, BMW is one of the car manufacturers with the complete

SUV category. The reason why BMW's x series cars stand out from other SUVs is that the

car is equipped with 3.0 engine (top1 best operating engine 2020), modern laser lights

combined with positioning ability and a lot of different advanced technology features (Merino

leather interior , Bowers & Wilkins Diamond surround sound system 20 speakers with 1500

3
watts power, panorama sunroof with 15,000 LED highlights, Integral Active Steering, 360

cameras, etc.) (Xehay, 2020).

The Vietnam market, with prices ranging from VND 1.8 billion to VND 7.5 billion depending

on the version. Thaco has successfully brought the BMW X series to Vietnamese customers,

but in the future, they must do better to survive in Vietnam. Let us explore these problems

with us.

2. MARKETING ENVIRONMENT:

There are 6 Micro factors that affect the BMW’s X Series in Vietnam. These factors the

Company; the Suppliers; Marketing Intermediaries; Customers; Competitors; and the

Publics. All of these factors play some role in BMW’s appearance in Vietnam.

The Company (written by Nguyen Tran Hai Quan)

BMW is a Multinational brand which spans its operations across multiple continents. In order

to efficiently manage all of its operations, the company has to designate different groups to

manage different areas. The group that manages the East Asia Region which includes

Vietnam is the BMW Group Asia (BMW Group Asia, n.d).

Because of this, the BMW Group Asia is the group that is responsible for choosing THACO

as the exclusive distributor of BMW in Vietnam from 2018 (Kieu Oanh, 2017). This proves to

be a new path for BMW in the Vietnamese market after its former distributor - Euro Auto was

caught illegally importing and distributing vehicles into Vietnam (Lam Anh, 2017).

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The Suppliers (written by Nguyen Tran Hai Quan)

BMW produces all of its products in Group Plant Leipzig which resides in Germany (BMW

Group, n.d). The production plant then sends out their products to distributors all over the

world (BMW Group, n.d). The company also uses a variety of different suppliers for parts,

although 50% of its suppliers reside in Germany or is a subsidiary of the company (Maverick,

2020). From an economic standpoint, this means that BMW can produce their vehicles for

cheaper prices than they would had they depended on other established organizations which

locate outside of Europe.

However, since they produce all of their vehicles in Germany, customers in Vietnam need to

pay more for these BMW vehicles than their Vietnamese - produces counterparts since

these counterparts receive a 50% stamp duty tax (Manh Linh, 2020).

Marketing Intermediaries (written by Nguyen Tran Hai Quan)

As mentioned above, BMW chose THACO as their exclusive distributor of BMW vehicles in

Vietnam (Kieu Oanh, 2017). Initially, when BMW chose THACO as their distributor for BMW

vehicles, the Vietnamese company reduced the price of the products by a large margin (Duc

Khoi, 2018). The reduction was specifically high for the X5, which received up to 589 million

VND price reduction compared to before (Duc Khoi, 2018). It seemed as if the company

wanted to create a more even competition price - wised between themselves and

competitors in Vietnam.

BMW also partnered up with Vietnam International Bank, which gives loans out up to 70% of

the vehicle’s value in 8 years (BMW VN, n.d). The partnership subsequently enabled

customers to purchase BMW vehicles with ease of mind.

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Customers (written by Nguyen Tran Hai Quan)

BMW sells products to individual consumers. The most famous BMW X series is the X1 with

279.000 cars sold in 2017 (Focus2Move, 2018). This was an increase of 33.4% compared to

2016 (Focus2Move, 2018). In the Asean market, which includes Vietnam, sales for BMW

vehicles in general reached 29.132, which increased 16.6% from 2016 (Focus2Move, 2018).

As the numbers have shown, we can observe that BMW is slowly becoming more famous for

customers in the ASEAN market. This also means that the more customers are choosing the

X series over other BMW’s products as the X1 is the third largest sales across all BMW

platforms (Focus2Move, 2018).

Competitors

Direct Competitors (written by Nguyen Tran Hai Quan)

BMW’s direct competitors include other car manufacturers. This includes Toyota, Honda,

Suzuki,... In the Vietnamese market, however, the most notable rival of BMW’s X - series

would be Mercedes’s GLC series. Both sharing a German origin, both a manufacturer of

luxurious SUVs, what gives Mercedes a competitive edge is its own assembly factory

located in Vietnam. Because of this, Mercedes vehicles sold in Vietnam receive a 50%

reduction in stamp duty as many other Vietnamese’ assembled vehicles do (Manh Linh,

2020).

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Indirect Competitors (written by Nguyen Tran Hai Quan)

Vietnam is a peculiar case for BMW’s cars. This is because Vietnam is a motorbike -

dominant country. In 2016, there were 52 million motorbikes (Motorbikes dominate

Vietnamese Travel, 2018). The number of cars, however, were 2 million units in 2015

(Appendice 1). Seeing that the increase rate is only roughly 100.000 units per year

(Appendice 1), it was unlikely that the number of passenger cars would surpass motorbikes

in 2016.

Public (written by Nguyen Tran Hai Quan)

Ever since THACO took over the distribution of BMW vehicles in Vietnam, there has been no

notable feud with the public in Vietnam. However, Euro Auto - BMW’s partner before Thaco,

was accused of forging fake invoices and packing lists for 133 BMW cars at the end of 2016

(Anh Tu, 2018). This forger resulted in a tax loss of roughly 180 million VND according to the

Vietnamese Ministry of Finance (Anh Tu, 2016). This scandal resulted in the arrest of Euro

Auto’s CEO at the time, Nguyen Dang Thao and two other delivery employees (Anh Tu,

2018).

There are 6 Macro factors that some of them may have impacts on BMW products line in

general and X series in particular. It also played an important role in the operation of BMW

THACO Vietnam. These factors include Political, Economic, Environmental, Social,

Technological and Legal forces.

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Political Factors (written by Pham Trung Kien)

Tax policy in Vietnam remains a difficult problem for individuals buying and using cars as

well as organizations that trade and import cars. According to the Nguoi Lao Dong

Newspaper, only the import tax on cars from Europe will cost at least from 60.5% to 70.9%

of the value of the car and even the Vietnam Free Trade Agreement (Gia Hưng, 2021).

South and European Union (EVFTA) in the period 2020-2022 applied to reduce the tax rate

on an annual cycle is still very high compared to the purchasing power of Vietnamese people

(Gia Hưng, 2021). In addition, in order for a BMW to roll over in Vietnam, the owner must

pay additional taxes such as excise tax, value-added tax, road traffic tax, etc., making the

value of the car change typically 100%-200% more expensive than the actual value

(Vietnamnet, 2017).

Therefore, the tax policy is one of the main reasons that consumers in Vietnam have few

opportunities to buy imported European cars in general and THACO AUTO's BMW in

particular.

Economic Factors (written by Pham Trung Kien )

After a period of fighting with the pandemic, the Vietnamese economy not only did not

decline but also went up markedly. Specifically, in the top 40 in the world and top 4 in

ASEAN in terms of GDP when reaching 343 billion USD (Nguyễn Minh Phong - Nguyễn

Trần Minh Trí, 2021). Citing from the People's Economy column, Vietnam's per capita GDP

has increased from 1331 USD to 2750 USD between 2010 and 2020, and by 2021 that

figure has increased to 3521 USD by 2021 (Nguyễn Minh Phong - Nguyễn Trần Minh Trí,

8
2021). Vietnam's economic potential is growing stronger than ever and it is also an evidence

that Vietnamese people have easy access to imported cars like BMW thanks to higher

wages and incentive programs offered by manufacturers and retailers.

Demographic Factors (written by Pham Trung Kien)

Thanks to the wide age distribution in Vietnam, all BMW models brought to the market are

favored at specific ages. Not only that, it is also suitable for all genders of the consumer. For

instance, young people in Vietnam who have a dynamic gameplay will choose M

Performance models to bring interesting experiences, and women choose models like Series

1 and 2 to make it easy when moving in tight streets, older successful business people will

choose Series 5 or 7 models to enjoy the comfort and privacy. Specially, BMW's introduction

of high-roaring SUVs like the X Series hits the Vietnamese mentality that tends to buy

models with clear vision, comfortable sitting posture, spacious enough for a family of 5-7

people.

3. SWOT ANALYSIS:

Strengths (written by Nguyen Tran Hai Quan)

BMW has also been known for their branding as well as the quality of their products. The X

series, which is the SUV line of BMW is no exception. This is especially important in

Vietnam, as the quality of the roads are not the smoothest, therefore, the majority of

Vietnamese people would opt for SUVs over the sedans counterparts of the same brand

(Ngo Minh, 2018). Another strength that the SUV line of BMW possesses is the fact Vietnam

is a collectivist country. This means that when the average VIetnamese person decides to

9
buy a vehicle, they would have to consider the vehicle’s ability to carry the whole family with

them (Ngo Minh, 2018). This gives BMW X - series a competitive edge over their sedan

competitors.

BMW also has a unique feature - the laser headlights. The laser headlights was introduced

in 2014, and now is widely used across multiple BMW platforms, including the X - series

(BMW, n.d). The headlights can produce the same photometric performance as its LED

counterparts while using 30 percent less energy (BMW, n.d). The creator, Dr. Hanafi, took

the X7 equipped with this technology out for a drive at night, and according to him: “Night

became day.” (BMW, n.d).

Weaknesses (written by Nguyen Tran Hai Quan)

As mentioned above, BMW does not have a factory in Vietnam. This is a weakness as BMW

uses premium German parts to produce their cars (BMW group, n.d). Therefore, if a

customer’s car breaks down or runs into any issues that the servicing company cannot fix

right away, they need to import parts from Germany directly. This would surely increase the

price of the parts due to transportation fees amongst others, making an expensive vehicle

such as BMW even more expensive.

Opportunities ( written by Pham Trung Kien )

For a developing country like Vietnam, entering the auto market is a great opportunity. The

trend for young people in this country to own cars at a very early age and as expensive

models, BMW is a better option. Because, BMW X-Series cars bring them youthful and

sporty feelings from exterior design as well as car engine, not only that but also shape their

position in society. In addition, an environment with relatively poor infrastructure, prioritizing

the selection of SUVs in general and BMW's X series in particular will be a reasonable

decision.

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Threats

Aside from a potential opportunity, it will be inevitable that BMW will have to deal with

already developed competitors in this market. For example, Mercedes Benz, Mercedes Benz

Vietnam Company (MBV) was established in 1995 and now has a production and assembly

plant for finished cars. Specifically, according to statistics in 2019, the total sales of

Mercedes Benz Vietnam (MBV) was 7000 units sold while the fate of BMW was in contrast

when only 1000 cars were sold (Vy Phong, 2020). Thus, the prices of locally assembled

Mercedes Benz models are often much more attractive than BMW's models in the same

segment when subject to a variety of taxes.

4. CUSTOMER-DRIVEN MARKETING STRATEGY (STDP):

● Segmentation:

Segment Demographic Psychographic Behavioural Geographic

Characteristics Characteristics Characteristics Characteristics

Segment 1: The They are the These people The cities that

Businessmen businessmen that people who like would use their the

(written by usually buy BMW the comfort of vehicles for “Businessmen”

Nguyen Tran X series are the daily commuting. different usually live in

Hai Quan) people who are They like quiet occasions. would be the big

about 30 - 40 places, luxurious Commuting to cities such as Ho

years old. This is products as well work would be Chi Minh city,

the group of age as the prestiges one. Going on Hanoi, Da

where these that comes along vacations would Nang,... These

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 people find with those also be are the cities

comfort in their products. They something these where the

income, are able to people would use economy is more

therefore, able to splurge on their cars. These developed,

splurge on BMW different people would enabling the

vehicles. These luxurious usually buy these group the

people can be products. cars because monetary means

both men and they are to purchase

women with a spacious. BMW these vehicles.

family of at most vehicles also

7 people. come with the

brand

recognition,

giving the

“Businessmen”

more reason to

buy them.
Segment 2: This segment The “Travelers” The “Travellers” These people

Traveler includes people are usually group would would most likely

(written by who are young working on their most likely use live in big cities

Nguyen Tran with a high weekdays. their car year where the

Hai Quan) income. Gender Therefore, round, be it for economy is more

would not be a traveling on daily - commuting developed. They

deciding factor as weekends would or traveling. They would also more

both men and be one way for choose the X - likely use these

women can be them to unwind series even vehicles to travel

travelers. This and relax from though they don’t to the

group of people their day - to - have a family countryside or to

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 doesn’t day work. because they other towns

necessarily need prefer how completely to

to have a family, spacious the X - escape from the

as they can be series are. bustling scenes

single and still of big cities.

buy the X -

series.
Segment 3: Car - Car - enthusiast They are the They can use The car-

enthusiast who buy BMW X people who want their vehicles on enthusiast

(Written by series are to collect different usually lives in

Nguyen Cong typically between luxurious cars or occasions. Car - the big cities

Thanh) the age of 20-30. are rare in the enthusiast such as Ho Chi

They earn a high market. Their usually use Minh, Ha Noi,..

income and have lifestyles are sporty cars such Because these

a passion for car dynamic, so the as the X6 cities have

collection to cars are often couple,..Instead developed

serve their own sporty with of using economies, this

demands. Almost multiple drive airplanes, they group of people

all of them are modes. want to drive will have a stable

men their car on income to satisfy

vacation to have their passion.

more

experiences.

Besides, they

can use their car

to go to meetings

with people who

have the same

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 passion Also, the

reason they

choose BMW to

serve their

passion would be

the safety of

everyday travel

and having a

different drive

mode.
Segment 4: The family- This field of The family- The

Family - person person who are customers who person use the accommodation

(written by Do 20-30 years old. want a vehicle of X- of a family-

Xuan Vinh) They have a connection to a series as daily person located in

medium-family car . This car such as go to a suburb or

size and serve included work or travelling district surrounds

every family’s technical devices whenever they the city centre.

member with an which bring want. This multi- This place can

affordable price. modern functional vehicle serve their living

They come from experience to the has adequate standard and

the middle-class driver. This class space for a correspond to

in the society. of clients usually medium size- their budget.

enjoy a youthful family.

and self-

motivated

lifestyle.
Segment 5: Bmw x series The appearance For entrepreneur, These will often

Entrepreneur approaches looks sporty and BMW always operate in large

14
(written by Dang Entrepreneurs in luxurious, the x offers good cities, populated

Thanh Danh) business, series cars are incentives for areas, and lands

entertainment suitable for all the customers who with many

and diplomacy. requirements of want to access x opportunities for

Bmw x series customers' series cars such development

fully meets the preferences. as taxes, such

luxury Bmw x series installment as Ho Chi Minh

requirements to with luxurious city, Binh Duong

make a good interior design. province.

impression The seats are

completely

covered with

leather that looks

very eye-

catching.

Equipped with

modern

speakers,

monitors, air

conditioning. In

particular, the

different feeling

of steering has

made the brand.

BMW's SUV

versions always

bring the best

15
 experience to

customers

● Targeting:( written by Nguyen Cong Thanh, Do Xuan Vinh)

In the above segments, the enthusiast is the most potential segment that BMW wants to

target and sees it as the core-market in Vietnam. The reason why BMW selected this

segment is because BMW desire to increase the market share by manufacturing distinctive

and configurable vehicles which bring the dynamic to the driver such as M Sport while the

biggest competitors- AMG of Mercedes Benz invincible in this field. BMW car enthusiasts are

still looking for ways to personalize their vehicles based on their interests in price, interior

design, technology, and so on. To support buyers gaining access to sports in vehicles such

as the B48 and E48, the manufacturer has added the M-Performance kit to the X-series to

meet the demands of those who already own and wish to use a BMW. As a result, the X-

series would provide automotive enthusiasts with the option of a high-pitched vehicle that is

safe on the road while still being open to speed and sportiness (Vt, 2019). In 2018, BMW

reintegrated after the previous contributor-Euro Auto was discovered to utilize forged

documents to evade the special consumption tax (Nguyen Huong, 2019). Because of faking

documents and evading tax, BMW's products can not be approved by the Agency of Foreign

Trade means BMW completely loses the Vietnamese market and makes their biggest

competitor- Mercedes Benz became the best luxury car brand in Vietnam.

Based on the development of ASEAN area, the targeting strategy of BMW Vietnam to

operate the sales network and advertise the brand imagined as the luxury brand in Vietnam

(BMW group, n.d). In 2018, BMW ASIA and Thaco-contributor of BMW Vietnam imported a

great deal of vehicles and decreased the price about a few hundred dollars per vehicle than

the previous years. This movement of BMW, it can be confirmed that BMW is a brand car as

the largest imported car from Germany at this time ( Quang Huy, 2018). Not only that but

16
also BMW targeted their strategy as a marketing mix to sell it’s vehicle to distinguish socio

economic segments (Amelia & Raina 2018).

● Differentiation:

Reputation of BMW Engine: (written by Pham Trung Kien )

Unlike its competitors, BMW differentiate itself from the rest of its competitors through the

company’s unique car designs. BMW’s reputation has always been inclined towards its own

sportiness and personality. Instead of gradually shifting to the trend of lightness and

elegance, BMW's car always carries an engine with extremely attractive power, solid and

most authentic driving feeling. This means that, instead of automakers trying to cherish rear

passengers, BMW chose to win the most enjoyable driving experience for people behind the

wheel. And until BMW introduces family SUVs like the X Series, these traits are still carried

by BMW to its successor SUV models. Take the BMW X6 for example, this model is the

SUV coupe mix, a sports division but equally luxurious in the BMW SUV. Outstanding in this

model is the TwinPower Turbo engine block that gives the car 340HP and reaches a

maximum speed of 250km / h (Tuan Phuong, 2020) . Not only that, but this is also the

darling of BMW when it is a pioneer in the Coupe SUV line (Tuan Phong, 2020), connecting

the legs of the BMW X6 with Mercedes Benz GLE Coupe, Audi Q8 but these two models are

not as successful as BMW's X6 has conquered consumers.

BMW Laserlight: ( written by Vu Dieu Linh)

Bmw is one of the first car manufacturers to use advanced lighting technology. Rather than

using traditional LED lighting technology such as Mercedes and Audi, BMW has subtly

chosen to use laser lighting and it appeared on the X5 xDrive40i xLine Plus, X6, 730Li Pure

Excellence and 740Li. This is because when lasers shine on lenses containing yellow

phosphorus, white light is produced and will have 10 times brighter intensity power than

17
LEDs and double the illumination (Vy Phong, 2020). This technology also allows the light to

shine up to 600 meters but saving more than 30% of energy compared to traditional lighting

systems (Quang Vu, 2019). Therefore, this function comes in useful when the car is on the

highway or on the road. Furthermore, Vietnam is expanding and developing more highways,

the development of bmw laserlight will provide a better experience and be more suitable for

Vietnamese people. Vietnam intends to expand the expressway more 5,000 kilometers by

2030 and by nearly 9000 kilometers by 2050. (Quang Toan, 2021). Besides that, the BMW's

laser headlights activate when the car gets a speed of more than 60 km/h (Vy Phong,2020),

and the cars on the highway are not slower than 70 km/h. BMW prioritizes safety when

developing this laser technology, since it supports dynamic spot lighting and high anti-glare

headlights (Minh duc, 2013).

● Positioning: (written by Nguyen Tran Hai Quan)

Position Map of BMW’s X - series prices and value compared to its competitors

(Drawn by Nguyen Tran Hai Quan)

The positioning map above describes BMW’s Price and Value compared to its competitors

such as Lexus and Mercedes. The reason why we chose “Price” is because it is a very

relevant factor that customers take into consideration when purchasing their vehicles. This is

18
because cars such as BMW and Mercedes as well as Lexus are considered by many to be

luxurious. Therefore, in order to purchase these vehicles, consumers need to pay a very

high price, leading them to become much more price conscious. Similarly, “Value” is very

important because of the fact that cars depreciate by a large margin right after purchasing.

Therefore, it is important to take into consideration “Value” as it acompasses factors such as

servicing, performance, looks and re - sell value.

BMW’s X - series starts at 2.067.280.000 VND (Tinxe, 2021) compared to GLC’s 1.936.000

VND (Mercedes Benz, n.d) and NX’s 2.560.000 VND (Oto.com.vn, 2021) from BMW’s

competitors Mercedes Benz and Lexus respectively. This is presented on map with BMW

being placed in the middle of Mercedes and Lexus in terms of pricing. This price is subjected

to various variables, one of them is the fact that both BMW and Lexus do not have a factory

in VIetnam (Lexus, n.d), making their prices much more expensive than Mercedes. However,

their value is much more different since Mercedes has a factory in Vietnam (Mercedes, n.d),

making servicing their vehicles easier and more cost effective. Lexus, despite the fact they

don’t currently have a factory in Vietnam, their vehicles typically retain more value compared

to BMW’s on the second hand market, where a used Lexus NX, priced at 2.650.000.000

VND (bonbanh.com, 2021) still costs more than its brand new BMW’s counterpart (see

Appendix 2).

BMW’s value proposition strategy is a more for more strategy. This is evident in the fact that

they price their vehicles at a higher price than their German competitor as mentioned above.

However, the quality they provide is undismissable with technology such as the laser

headlights (BMW, n.d) and its unique sporty design that is prevalent across all of its lineups,

especially the X - series. The value they provide when you pay for more is also easy to see

with their M - package where if you pay for more, you also receive sporty trims that fit

perfectly on your X - series (BMW, n.d)

19
5. CONCLUSION:

We can see from the report that BMW’s X - series is a highly capable vehicle that is more

than adequate for your typical Vietnamese road. It also delivers value and technology that

many argue are better than its competitors. Despite this, BMW sales and its ability to retain

value post - purchase is still questionable in the Vietnamese market. This stems from the

fact that their most direct competitor - Mercedes Benz, has a factory in Vietnam, reducing

their prices so that more customers can easily access their vehicles than the X - series that

BMW delivers. (written by Nguyen Tran Hai Quan)

From the previous, BMW's SUVs, X series are highly appreciated for quality and design,

which explains that BMW is a well-known car manufacturer in the Vietnamese market. In

contrast, they target business class customers who always want the technology,

experiences, and excitement that a car can offer. Since 2015, SUVs have achieved much

success despite the high price (Giang, 2020).

Whereas, because of the problem of not having an official car production headquarters, so

BMW has not responded well to the services for customers. In 2017, Thaco will import the X

Series for business in the Vietnam market and assemble these SUVs in Vietnam. Through

BMW Asia, BMW Group said it would end a four-year partnership with Sime Darby

(Malaysia), the investor currently holding The European Automobiles Joint Stock Company

(Euro Auto). Instead, they will choose Thaco as an importer of BMW cars for business in the

Vietnam market and reassemble BMW cars in Vietnam. A few days later, Truong Hai

representative publicly announced specific information about the distribution system, import

roadmap, assembly, product policy (Thuy Ngan, 2017).

That has satisfied many BMW customers in the country. The fact that customers are assured

when choosing BMW has made SUVs popular in the Vietnamese market. The BMW X

Series is entirely worth the value, the money that customers spend. If you can afford it,

20
choose to become a BMW customer, do not miss the SUVs of this X Series. (written by

Dang Thanh Danh)

6. REFERENCES

About BMW Group Asia|Regional Hub Overseeing East Asia (no date). Available at:

https://www.bmw.com.sg/en/topics/fascination-bmw/about.html (Accessed: 4 April 2021).

BMW Financial Services | BMW Insurance | BMW Vietnam (no date). Available at:

https://www.bmw.vn/en/topics/offers-and-services/financial-services.html (Accessed: 5 April

2021).

BMW Group ASIA has selected THACO as its new investor in Vietnam (no date). Available

at: http://thacogroup.vn/en/communications/News/06944D/bmw-group-asia-has-selected-

thaco-as-its-new-investor-in-vietnam.aspx (Accessed: 4 April 2021).

BMW n.d, 'Lịch Sử Hình Thành Thương Hiệu BMW', Dailyxe.com.vn, viewed 9 April 2021,

<https://dailyxe.com.vn/thuong-hieu/bmw-viet-nam-64b.html>.

BMW X5 Depreciation (no date). Available at: https://caredge.com/bmw/x5/depreciation

(Accessed: 15 April 2021).

carlo (2018) ‘Focus2move| BMW Global Performance 2017 - Facts & Data’, Focus2Move,

25 February. Available at: https://www.focus2move.com/bmw-global-performance-2017/

(Accessed: 5 April 2021).

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dantri.com.vn (no date) Vì sao ô tô lắp ráp trong nước đắt hơn xe nhập khẩu?, Báo điện tử

Dân Trí. Available at: https://dantri.com.vn/o-to-xe-may/vi-sao-o-to-lap-rap-trong-nuoc-dat-

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‌7. APPENDICES:

Appendice 1

Numbers of passenger cars in use in Vietnam from 2006 to 2015 (Statista, 2015)

(written by Nguyen Tran Hai Quan)

26
Appendice 2

A used Lexus NX 300 price (written by Nguyen Tran Hai Quan)

27