Car companies sell off inventory and reduce prices
Joint venture car manufacturing and assembly companies have simultaneously launched small, eye-catching, low-priced cars. In addition, the number of imported cars is gradually increasing according to the commitment to join AFTA, causing manufacturers and businesses to find ways to sell off their products to compete.
Customers refer to Honda City car model in Ho Chi Minh City.
Competitive selling price
Recently, many domestic car manufacturers have launched a series of sedans with quite impressive prices, around 500 million VND/unit. Because they were launched at the same time, the quality and design of the cars are quite similar, so the manufacturers are quite cautious, even competing with each other on every penny on selling price to easily gain the upper hand.
The first shot, Kia Forte (by Thaco Kia) is considered the sedan with the lowest price on the market with 535 million VND for the manual version. After a short time of launching, Kia Forte has sold more than 850 units. Then in mid-June, Honda Vietnam
Mr. Nguyen Dinh Nhu, General Director of Kim Thanh Automobile Joint Stock Company - the official distributor of Honda automobiles, said that after launching the Honda City model, the number of customers ordering increased dramatically. Shortly after that, Nissan launched the Nissan Sunny model with a retail price of 518 - 588 million VND/car, depending on manual or automatic transmission, to compete with the Honda City.
Immediately after the launch of Honda City and Nissan Sunny, Thaco Kia quickly adjusted the price of the Kia Forte line down to 495 million VND, a reduction of 40 million VND compared to the original. Thaco Kia's sales specialist said that the nature of this price reduction is to increase competitiveness and attract customers against the two rivals Honda and Nissan.
According to many car manufacturers, the above car segments with small engines of 1.5L - 1.6L, previously had low demand and received little attention. However, now that the auto industry policy is giving more priority to this car line, along with changing consumer trends, the market segment has become more vibrant. In particular, with a selling price of just over or under 500 million VND, it is very suitable for many people's budgets, and at the same time, the flexibility of these car lines when traveling in the city is more and more popular in the market.
Car prices are still down
According to the Vietnam Automobile Manufacturers Association (VAMA), the industry's recovery trend will continue to increase if local authorities decide to apply a 10% registration tax in the near future. At that time, it is forecasted that total market sales could reach 108,000 vehicles instead of 100,000 vehicles as initially forecast. In addition, according to the roadmap to join AFTA, the import tax rate for complete automobiles from the ASEAN region to Vietnam will decrease to 50% in 2014, 35% in 2015, 20% in 2016, 10% in 2017 and 0% in 2018.
Thus, in 2014, import tax on complete cars from the ASEAN region to Vietnam will be
According to Vietnamese automobile enterprises, the reduction of import tax rate for completely built-up cars to 50% will make the price of some imported car models equal to the price of domestically assembled cars. This will create pressure for domestically assembled cars to find ways to reduce prices to compete or, realizing that production is not effective, they will have to stop and switch to imports. Therefore, it is forecasted that completely imported car models with cylinder capacity under 2.0L will continue to decrease in price sharply in the following years.
Faced with this situation, domestic automobile manufacturing and assembly enterprises are calculating and planning. In the coming time, they will focus on assembling car models with large output and competitive advantages, while models without advantages will stop and switch to importing.
Deputy Director of the Heavy Industry Department (Ministry of Industry and Trade) Ngo Van Tru said that if there are no timely and reasonable measures, Vietnam will become an automobile import market when the import tax on completely built-up cars in ASEAN is 0% in 2018, leading to increased pressure on the trade deficit of the economy.
Therefore, the plan to drastically reduce taxes and fees to expand market capacity, thereby promoting the development of the automobile industry, needs to be calculated and decided soon. Because when implementing a drastic reduction in taxes and fees, it will create conditions for large car manufacturers to stay in production instead of switching to complete import.
According to SGGP - PH
