Many popular car models saw significant price reductions in August.

Honda is offering discounts of nearly 200 million VND on some models, Toyota is maintaining promotions on the Vios and Corolla, while Mazda continues to offer significant price reductions on the CX-5.

Besides clearing out inventory before the pivotal year of 2018, the decline in sales in July was also one of the reasons why car manufacturers continuously implemented price reduction policies to stimulate demand. Promotional programs extended from one month to the next, with many models that had already been discounted the previous month seeing even larger price reductions the following month.

For example, the Mazda CX-5, which had an unprecedented price reduction in Vietnam in June, has seen another drastic price drop this August. Currently, the CX-5 is priced from 802 to 908 million VND, with a 9 million VND gift included. The actual price at dealerships is between 793 and 899 million VND. In addition, some Mazda dealerships are offering further discounts of around 10 million VND to boost sales. Compared to July, the actual price of the Mazda CX-5 has decreased by 40 to 50 million VND.

However, the price reduction for the Mazda CX-5 pales in comparison to its competitor, the Honda CR-V. The new price for this crossover has dropped by 110 to 170 million VND depending on the version, effective August 8th. Specifically, the Honda CR-V 2.0 AT, 2.4 AT, and 2.4 AT TG are now priced at 898 million, 988 million, and 1.028 billion VND respectively. This is also the biggest price reduction for this model in Vietnam to date. Not only the CR-V, but Honda's two sedan models, the Accord and Civic, also saw price reductions of 192 and 52 million VND respectively this month.

Honda CR-V prices have been reduced by up to 170 million VND.

Meanwhile, the main competitor of the Honda CR-V and Mazda CX-5, the Nissan X-Trail, continues to offer significant promotions. In addition to gifts including a navigation system and floor mats, customers buying the X-Trail also receive cash discounts of 10-40 million VND depending on the version. Other Nissan models also receive discounts of 5-45 million VND.

Since June, Hyundai Thanh Cong has consistently applied a discount policy of 40-70 million VND for the Elantra and Santa Fe models. The promotional program is so long-lasting that if customers don't manage to buy one this month, they can still receive a similar discount next month.

Thaco Truong Hai has also implemented a new pricing policy for Kia models. This adjustment reduces prices by 1 to 40 million VND for many models. The Kia Quoris 3.8 GAT saw the biggest reduction, now priced at 2.708 billion VND.

Toyota Vietnam continues its promotional policy offering a registration fee subsidy of 30 million VND for the Vios and 40 million VND for the Corolla. In addition, the Vios is also being sold at dealerships at a lower price than the listed price. The manual transmission Vios E is now only 490 million VND at some dealerships.

It's clear that Vietnamese consumers have never received as many incentives from car manufacturers as they do now. However, sales haven't increased as a result.

Statistics from the Vietnam Automobile Manufacturers Association (VAMA) show that the car market in July decreased by 16%, reaching approximately 21,000 vehicles sold. At this time, only those with a genuine need are buying cars, while the rest are mostly waiting for market fluctuations between now and 2018, when import taxes from ASEAN countries will be reduced to 0%.

According to Zing