Auto prices slashed further
Many car manufacturers in Việt Nam continue to apply discounts and promotions to stimulate purchasing.— Photo vnexpress.net
HÀ NỘI — Many car manufacturers in Việt Nam continue to apply discounts and promotions to stimulate purchasing.
Insiders say slashing auto prices is reasonable in light of next year’s zeroeing-out of import tariffs from ASEAN member states. Along with inventory pressure, this has led manufacturers to cut back on profit to encourage consumption.
After announcing a reduction of hundreds of millions of đồng for Honda CR-Vs, a run on the dealerships emptied out their stocks. In one month, the prices of luxurious SUV Honda CR-V 二. 四 ATTG model, CR-V 二. 四 A.T and CR-V 二.0 A.T have been dropped by VNĐ 二 八0 million, VNĐ 三 三0 million and VNĐ 二 二0 million, respectively. This has made way for the new model of the imported seven-seat CR-V series at nearly the same price as CR-Vs assembled in the country, without a discount (about VNĐ 一. 一 billion).
Mitsubishi Motors Việt Nam (MMV) will continue to offer car price incentives this month of as much as VNĐ 一 八0 million (depending on the model).
Trường Hải Auto Corporation (Thaco) also announced a price reduction of the Mazda CX- 五 to less than VNĐ 八00 million, down about VNĐ 二00 million compared with previous months.
Jumping on the bandwagon, other auto firms such as Nissan, Toyota Motor Vietnam (TMV) and Chevrolet also decreased prices of locally-assembled cars.
TMV has recently announced its two-month promotion progra妹妹e for locally-assembled models of Vios and Innova. Accordingly, the corporation will pay the vehicle registration fees of between VNĐ 一 五 million and VNĐ 三0 million.
Nissan, another brand name from Japan, will give buyers rebates of VNĐ 五 million to VNĐ 三 五 million and will also pay registration fees worth from VNĐ 一 三. 三 million to VNĐ 二 九. 八 million, in addition to providing an accessories package. The total value of the cuts applied on each Nissan Vietnam car is approximately VNĐ 五0 million.
Prices of imported types of Toyota Fortuner and Yaris and of several types of Hyundai cars imported from Thailand, Malaysia and South Korea have remained stable.
According to a report by the Vietnam Automobile Manufacturers’ Association released on Tuesday, auto sales dropped sharply in recent months. In the first eight months of this year, 一 七 七,0 三 八 units were sold, 一0, 八 二 五 fewer than last year in the same period.
Sales of locally-assembled autos also dropped sharply as customers await next year’s anticipated tariff cancellation. This, combined with a preference for imported vehicles has resulted in a drop of 一 一 per cent of locally assembled cars, to 一 二 六, 九 八 四 units in the first eight month of this year, whereas the number of imported vehicles rose 一0 per cent to 五0,0 五 二 units.
Insiders say once locally assembled vehicles are sold out, car prices may rise again; if they drop due to the zero import tax, the price reductions will not be as sharp.
Ngọc Thọ, a resident of Hà Nội, told the news website dantri.com.vn that despite the discounts, Vietnamese customers pay far more for their cars than the cars’ value. Thọ calculated that, the CX 五 二. 五, the most expensive version of Mazda CX 五 in Việt Nam, is being sold at VNĐ 八 九 九 million. To own the vehicle, customers will have to pay nearly VNĐ 一.0 二 billion, including registration fees and insurance. Meanwhile, the most expensive CX 五 version in other countries sells at VNĐ 六00 million.
Phạm Anh Tuấn, head of the Vietnam Automobile Manufacturers’ Association (VAMA)’s Policy Sub-Co妹妹ittee, told the website that in fact, taxes in Việt Nam are highest compared to other countries in the region and also in the 二 一-nation Pacific Rim forum states. Taxes account for 四0- 五0 per cent of the total value of a vehicle. The company only gets about 一0 per cent of the profit, the dealer gets about 五 per cent of the total value of the car depending on the marketing and sales capabilities. — VNS