06:21 | 19/09/2020 Economy
(VEN) - The Vietnamese auto market is facing difficulties due to the Covid-19 economic impact and manufacturers and dealers are offering huge incentives to promote sales.
|Difficulties forecast for year-end auto market|
The Vietnamese auto market was thriving earlier this year due to the initial success in the prevention and control of the Covid-19 pandemic, as well as discounts and stimulus programs. According to the Vietnam Automobile Manufacturers’ Association (VAMA), sales of automobiles increased by 62 percent month-on-month to more than 19,000 units in May, and 26 percent month-on-month to over 24,000 units in June. The July figure improved further thanks to 50 percent cut in registration fee.
However, the Covid-19 outbreak in the central coastal city of Da Nang in July has led to a decline in sales. Since the beginning of August, car manufacturers and dealers have launched discounts for many car models, especially for imported cars that are not entitled to the 50 percent registration fee discount provided for domestically made cars.
Ford Vietnam is running a 50-100 percent cut in registration fee, or offering direct discounts. The Ford Everest Titanium 2.0L AT 4WD version is being discounted by up to VND200 million, while buyers of other Everest versions receive price cuts of around VND60-85 million.
TC Motor retailers are offering a VND13-20 million reduction for Hyundai Kona versions. In addition, customers are offered a genuine accessory package.
A number of new models, such as the Honda CR-V 2020, MG HS and ZS, Mazda6 2020 and Suzuki Ertiga Sport are being discounted by VND10-50 million to attract buyers. Some dealers also offer high-value accessories for car purchases.
However, the industry expects to encounter greater difficulties in the coming months, exacerbated by the seventh lunar month, which began on August 19 and is traditionally considered taboo by most Vietnamese for spending large sums of money on purchasing real estate and cars. As demand shrinks, caused by both psychological fear and the difficult economic situation, automobile brands are left with little choice other than providing discounts to help push up sales and maintain market share.