Vietnamese auto market tuning up ahead of 2018

10:17 | 25/08/2017 Society

(VEN) - The domestic automobile market is experiencing fluctuations due to the impending reduction in car prices in early 2018 when ASEAN import taxes are zeroed out.

vietnamese auto market tuning up ahead of 2018

New cars at discounts

The Truong Hai Auto Corporation (Thaco) has offered discounts of up to nearly VND200 million on its Mazda cars to buyers before the end of this lunar year in February 2018.

Other automobile manufacturers have also announced discount programs. The price of a Honda City was reduced to VND501 million for manual transmission and VND551 million for automatic transmission, while its Civics dropped VND30-40 million in price and the Odyssey by VND60-70 million. Toyota Vietnam also reduced prices starting from VND50-90 million for many models, such as Innova, Altis and Camry.

Although there are many price support policies for buyers, car sales have declined, suggesting the domestic automobile market is in transition as buyers adopt a wait-and-see attitude ahead of the 2018 tax lifting.

The final months of the year will a difficult time for automobile manufacturers. In addition to discounts, they will have to come up with new solutions if they do not want to see steep declines in sales.

Selection of used cars

The ongoing discounts on new models have also resulted in lower prices of used cars, which are the best option for many customers.

Customers are reportedly showing an interest in a variety of low-priced used cars, such as the Kia Morning, Hyundai Grand i10 and Daewoo Lacetti.

Tran Quan, a representative of Viet Nhat Auto showroom on Hanoi’s Le Van Luong Street, said the prices of used cars depend on those of new cars. A used car (depending on its condition) can be priced at VND100-200 million lower than a new one. Therefore, used cars are more attractive to consumers than ever before.

If buyers purchase a new car right now, they will lose tens to hundreds of million Vietnamese dong. Therefore, used cars are a good option for those seeking to reduce the cost of depreciation. The average depreciation level is about VND200 million per year for new cars, while used cars only depreciate about VND50 million per year.

According to the Vietnam Automobile Manufacturers Association (VAMA), the retail price of most popular automobiles in Vietnam is now close to the regional average.

Thu Ha