The automotive market is looking brighter towards the end of the year.
(Baonghean)After several sluggish months, the Vinh City car market rebounded towards the end of the year, with sales in December 2012 and January 2013 showing a significant increase compared to previous months. Besides the increased demand for cars in the final months of the year, the efforts of suppliers in launching new products and offering promotional programs and discounts to stimulate consumer demand should also be mentioned.
Data from the Vinh City Tax Department shows that at this time last year, 201 cars were registered with a total fee of over 9 billion VND, while in January 2013, this number increased to 382 cars, with nearly 20 billion VND in fees.
At Toyota Vinh Joint Stock Company, while sales normally reach 70-80 cars per month, November saw a surge to 110, December to 120, and by January 25th, 2013, sales had increased to 181. Mr. Phung Ba Ngoc, Deputy Director of Toyota Vinh Joint Stock Company, stated: "After Ho Chi Minh City and Hanoi, Vinh is one of the markets with strong car sales, comparable to some major cities like Da Nang and Hai Phong, because Vinh's roads are well-planned and wide, and its residents are known for their willingness to spend. In 2012, the economy continued to face difficulties, and the real estate market froze, resulting in slow sales. However, currently, car sales are booming, with models like the Altis and Vios selling out completely; we have to restock from dealerships in other provinces." According to Quang, a salesperson here, many customers have to wait 1-2 months for their cars to be delivered. The reason is that the number of orders for this model exceeds the number of cars produced. More fundamentally, due to sluggish sales throughout the year, the manufacturer reduced production capacity, leading to a supply shortage at the end of the year.
Customers choose vehicles at the Toyota Vinh dealership.
Throughout the year, there were times when dealers offered significant discounts to stimulate consumer demand, yet sales still didn't increase. However, now there are no more promotional prices, and customers even accept paying extra for shipping from Ho Chi Minh City or Hai Phong.
At Hyundai Vinh Joint Stock Company, although they entered the Vinh market later, they have attracted a considerable number of customers. Unlike some Toyota models that are experiencing shortages, the Hyundai dealership is ready to supply vehicles to customers during the Tet holiday. Mr. Ngoc – Head of Sales Department shared: "The current demand for cars is similar to when we bought motorbikes. In the last month of the year leading up to Tet, the demand for transportation increases, and the weather is often rainy and cold, so car sales are very high. In January 2013, we sold over 100 cars; the total for the whole year is about 600 cars."
Mr. T., a customer from Ha Tinh who chose a Hyundai Accent in time for Tet (Lunar New Year), said: "I chose the Accent because it's a fully imported Korean car, with a beautiful design and many colors to choose from. In addition, the car's quality is good, with many new features..."
Currently, the automotive market is experiencing its most vibrant and intense period of the year, with sales at most dealerships surging. However, overall sales for the year remain low. According to Mr. Nguyen Phi Hung, Head of the Vehicle Registration Tax and Personal Income Tax Team (Vinh City Tax Department), the number of vehicles sold has decreased sharply due to general economic difficulties. Evidence shows that while 3,810 vehicles were declared for vehicle registration tax in 2011, this number decreased by nearly 1,000 in 2012, reaching only 2,942 vehicles. With continued economic difficulties and the regulation applying road usage fees based on the number of vehicles (cars and motorcycles), the automotive market in 2013 is not expected to be very promising.
Thu Huyen
