Consumers expect 0% tax rate on cars in 2018

Faced with declining sales and the waiting mentality until early 2018 when import tax on cars from ASEAN to Vietnam is 0%, car importers and dealers said they will continue to offer promotions and deep discounts to stimulate consumer demand in the last months of the year.

Imported cars from ASEAN are increasingly coming in. Illustrative photo, source Internet.

A report by the Vietnam Automobile Manufacturers Association (VAMA) showed that total market sales in April 2017 reached 21,942 vehicles, down 18% compared to the previous month and down 15% compared to the same period in 2016.

According to statistics from the General Department of Customs, in the first 4 months of the year, the import of complete cars into Vietnam reached more than 33,400 units, of which more than 54% were imported from ASEAN countries. Specifically, 12,000 units were imported from Thailand, worth 219 million USD, an increase of more than 18% in volume compared to the same period last year; from Indonesia, nearly 6,000 units, worth 102 million USD, an increase of 5.3 times in volume compared to the same period in 2016...

According to experts, nearly half a year after the import tax on cars from ASEAN to Vietnam was reduced by 10%, domestic car prices have dropped sharply. However, consumers have been waiting until early 2018 when the import tax on cars from ASEAN will be reduced to 0%.

In addition, facing the pressure of 0% import tax on cars in ASEAN in 2018, domestic car manufacturers and assemblers have also considered cutting down on car models produced in Vietnam and importing them instead.

With car sales forecast to be sluggish until the end of the year, to stimulate domestic consumption, car manufacturers and dealers are currently actively offering promotions and discounts.

Recently, Toyota launched a promotion program, discounting the Camry model up to 90 million VND, Toyota Innova, Edan Toyota Vios models reduced by about 50-60 million VND.

Chevrolet also reduced prices from 20-70 million VND for its car models. Nissan Vietnam has reduced prices for many car models from 15 million to several tens of million VND. Similarly, Thaco also slightly reduced prices from 5 to 34 million VND depending on the car model.

According to Chinhphu.vn