Cars on sale for 100 million, don't rush to buy a car for Tet

In 2017, when the tax rate was reduced, the prices of imported cars from Thailand and Indonesia to Vietnam also decreased. Therefore, to attract customers at the end of the year, businesses launched a series of new car models, with strong discounts, making the car market extremely vibrant.

Look at each other to lower prices and push goods.

Since the beginning of November 2016, Vina Mazda Company has launched a promotion program for customers buying cars that lasts until December 31, 2016. Car models are discounted from 15-50 million VND, depending on the type.

At the same time, Thaco Kia Company also reduced from 22 to 61 million VND for Kia models in the popular segment and reduced from 90 to 127 million VND for Kia models in the high-end segment.

Last month, GM Vietnam also launched an attractive price incentive program for Chevrolet models, lasting until the end of the year, with discounts ranging from 15-30 million VND.

Domestic car companies compete to reduce prices at the end of the year (illustrative photo - Le Anh Dung)

Mitsubishi Vietnam has a promotion program in December 2016. Accordingly, customers who buy Mitsubishi cars, in addition to receiving preferential prices, will also receive many gifts, such as a 1-year comprehensive insurance package, fuel vouchers or car maintenance promotions.

Honda Vietnam has organized a promotion program exclusively for customers who buy two high-end imported cars, Honda Accord and Honda Odyssey. During the period from November 21 to December 31, 2016, customers who buy cars will receive attractive vacation gift vouchers with a total value of up to 40 million.

In addition, a market survey at this time shows that many car models are being heavily discounted by dealers to attract customers, with some models being discounted by hundreds of millions of dong.

At Ford car dealerships in Hanoi, the Ranger model is discounted from 30-40 million VND depending on the version. Other models such as Focus, Fiesta, EcoSport,... are discounted from 20-60 million VND depending on the model.

However, the biggest discount is the Camry model of Toyota Vietnam. After the launch of 3 new versions, the old versions have had their selling prices reduced by 100-120 million VND. Toyota dealers in Hanoi also sharply reduced the selling prices of some models, such as Altis by about 40 million VND, Vios by about 30-40 million VND compared to the company's announced price.

The auto market is experiencing fierce competition between brands. Many models are constantly being discounted, forcing competitors to follow suit or else they will lose market share.

For example, the Mazda CX5 model in November 2016 was reduced from 984 million VND to 1.055 billion VND for 3 versions, but by early December 2016, it was reduced by another 25-30 million VND, not to mention the incentive program. This has put pressure on competitors in the 5-seat SUV segment, forcing other businesses to consider reducing prices or launching promotional programs.

However, some auto companies announce price reductions, but others do not announce price reductions, but "give the green light" to their dealers to "big discounts" and promise to reward them with increased sales.

Vietnam is importing the most cars from Thailand.

Wait until 2017, prices will continue to decrease

Enterprises said that starting January 1, 2017, import tax on complete cars from ASEAN to Vietnam will be reduced to 30%. With a 10% tax reduction, the price of some car models imported to Vietnam will decrease by at least 500 to more than 1,000 USD, depending on the model.

According to experts, with the import tax rate from ASEAN reduced to 30%, the price of imported cars is almost "equal" to the price of domestically assembled cars. This is also the reason why many auto companies are rushing to reduce car prices as 2017 approaches.

For example, with Toyota Vietnam, up to now, every time a new version is launched, with new features added, the selling price will increase, but now it is the opposite. In early December 2016, this company launched 3 new Camry versions, with many upgrades but the selling price is reduced compared to previous old versions from 24-31 million VND.

Some auto companies said that in the new year 2017, when the tax rate is reduced, the prices of imported cars from Thailand and Indonesia to Vietnam will be reduced. Along with that, if the calculation shows that assembling cars is no longer advantageous, they will switch to importing for distribution. Therefore, next year, there will be many imported cars from these countries to Vietnam.

On the other hand, some opinions do not believe that imported cars will flood in because Vietnam will have control policies, making it difficult for prices to decrease.

However, the reality is that with the import tax rate for complete cars from ASEAN to Vietnam at 40%, cars imported from Thailand have flooded in and risen to the number one position in Vietnam.

According to statistics from the Customs Department, in the first 10 months of 2016, imported cars reached 82,743 units, with a turnover of approximately 1.8 billion USD. Of which, 26,790 units were imported from Thailand, with a turnover of approximately 500 million USD.

Thus, for every 3 imported cars, 1 car comes from Thailand. In terms of price (CIF price, excluding taxes and fees), the average price of each car imported from Thailand is 407 million VND.

In addition, there are cars from Indonesia. Currently, Indonesian car imports are not many, from the beginning of the year until now, only about 2,000 units. But the average price of each Indonesian car when imported to Vietnam's port is very low, only 289 million VND. In the coming time, imported cars from here are forecasted to increase sharply, especially the 7-seat segment, small engines under 2.0L due to many advantages. This will certainly cause car prices on the market to tend to decrease.

According to VNN