Honda CR-V - Big shock to Vietnamese car market at the end of the year

Honda CR-V, CR-V and CR-V are the names that have caused more stir than any other car in recent times, noisier than the unique "wind god" Pagani Huayra worth nearly 100 billion coming to Vietnam or Vingroup producing cars because it not only shocked the price but also opened up many other stories...

Honda CR-V suddenly reduced price by hundreds of millions of dong

Honda’s all-in price campaign to clear inventory to welcome the new CR-V seems to have ended as prices at many dealerships have increased again. However, the sharp drop in CR-V prices has also had a negative impact on the Vietnamese car market in general.

Used car lost

The story of the annual reduction in new car prices usually refers to used cars first. Because used cars are always calculated based on the price of new cars, if the price of used cars is higher than new cars, who will buy them? However, it is happening in Vietnam. Looking around the used car markets, it is surprising to know that the price of the 2015-2016 CR-V 2.0 version is still at 750 - 800 million VND while the 2.4 version costs from 810 to more than 900 million VND.

This price is even quite a bit higher than a new CR-V brand new at the dealership. The reason why used car ads are still high is mainly because the price of new cars has dropped so much that "Fast and Furious" hundreds of millions of dong, making old car owners unable to react, and the rest... are bored and don't want to sell. It can be said that the shocking price reduction of CR-V has had a significant impact on the used car market as well as the psychology of customers who have just bought a car because after just a few days or even a few hours, they can "lose" hundreds of millions of dong.

"The whole family sells cars"

The psychology of “hesitant” waiting for prices of consumers, competitors’ strong price reductions have caused the inventory of many cars to increase, of which CR-V is no exception. This requires Honda to mobilize all available resources to sell cars, including motorbike dealers. Honda’s action is considered a campaign to clear inventory to welcome new recruits, but clearly the use of motorbike dealers is unprecedented for other businesses.

Accordingly, not only opening an unprecedented promotion program of buying a high-end CR-V and receiving a SH125i, Honda also gave the green light to motorcycle HEADs to sell CR-Vs by offering better prices than car dealers for directors, investors or store managers and customers introduced by HEADs. Although there is information that the number of cars sold through HEADs will be limited, with hundreds of dealers nationwide, this is not a small number.

Keep waiting

The Vietnamese car market has been in a wait-and-see mode since the beginning of the year, waiting for 2018, waiting for car prices to drop further... It has become a vicious cycle where sellers want to sell cars, buyers want to buy at a good price, becoming a circular chase, car prices continue to drop, users continue to be indifferent. Because many times, many car models that seemed to have hit rock bottom and could not be reduced further suddenly had news of a price reduction of tens of millions of dong.

And the CR-V is a typical example, it gives consumers more motivation to... wait because it seems like the story of car discounts never stops. Although the current price of the CR-V is considered very good, there are many orders after the discount storm causing some dealers to slightly increase the price, but with its all-in action, Honda is forcing competitors in the segment to continue to reduce prices if they do not want to have inventory.

Because at least in the mid-size crossover segment, competition has long been about more than just prestige or equipment.

According to TNO