Cars priced around 200 million VND are flooding into Vietnam.

Several new car brands will enter the Vietnamese market after 2018, targeting the small, affordable segment for middle-income earners.There are some car models that are projected to cost only 200 million VND.

A formidable new rival.

According to a source, Daihatsu will soon return to the Vietnamese market with small, affordable models. Daihatsu, a subsidiary of Toyota, specializes in producing small cars with engines of 1.5L or less and has become a best-selling small car brand in many Southeast Asian markets.

Daihatsu has its main production base in Indonesia. The most famous of the small cars produced there is the Ayla, which is extremely affordable, costing only about 200 million VND. At the 2017 Vietnam Motor Show, Toyota Vietnam introduced the Wigo, which is essentially the Ayla, sharing 90% of its features, differing only in name and some interior and exterior details depending on the market.

Several new car brands will enter the Vietnamese market after 2018, targeting the small, affordable car segment.

Next year, the Daihatsu Ayla may officially appear in the Vietnamese market alongside the Toyota Wigo, adding more variety to the small car segment.

Two Malaysian car manufacturers, Proton and Perodua, are also eyeing the Vietnamese market after 2018. In Malaysia, Proton and Perodua currently hold 48% of the automotive market share.

Proton offers 8 models, with prices ranging from approximately 200 million VND to 700 million VND. Meanwhile, Perodua only produces 4 models in the A-segment, priced from approximately 130 million VND to 360 million VND.

The advantage of Malaysian-made cars is that they are cheaper than those from Japanese brands, while the technology and features are almost equivalent.

For example, Proton offers the Persona in the B-segment, competing with the Toyota Vios and Honda City. With similar dimensions and comparable technology, the Persona starts at RM 56,130 (approximately VND 303 million). Compared to the Honda City, the Persona is about VND 106 million cheaper, and the Toyota Vios is about VND 154 million cheaper.

The affordable small car segment will face fierce competition in the near future.

In addition, many car manufacturers present in Vietnam will also introduce new products in the small car segment. Honda Vietnam has introduced the Jazz model, while Toyota Vietnam has introduced the Wigo. In the near future, Suzuki, Nissan, Mitsubishi, and others will continue to introduce affordable small car models.

This signals fierce competition in the affordable small car segment of the automotive market in the near future. Kia Morning, Hyundai Grand i10, Chevrolet Spark, Toyota Vios, Honda City, etc., are about to face even more formidable rivals.

Entering 2018, import taxes on completely assembled cars from the ASEAN region to Vietnam will be reduced to 0%. In addition, the special consumption tax on cars with engine capacities of 1.5L or less will be reduced to 35%, and on cars with engine capacities between 1.5L and 2.0L to 40%. Calculations show that imported small cars will see significant price reductions. Many small car models will then be priced at 350 million VND or less.

Moreover, the entry of new brands and products will bring greater diversity to the automotive market, giving consumers more choices.

Pay less, spend more.

Businesses predict that competition in the automotive market will be fierce from 2018 onwards. The affordable, compact car segment will be the most dynamic. Without a good plan, survival will be difficult.

Many automotive companies share a similar product strategy: continuously improving quality and adding more features, even to their budget-friendly models. This will create more appeal and attract more customers.

Many affordable small car models are imported from abroad.

In the near future, technologically advanced vehicles will appear in Vietnam. These cars will be equipped with speed advisory systems and traffic information updates for roads ahead, helping to reduce congestion.

New technologies such as automatic parking with a single button press will become commonplace... Even the colors of the cars will change to suit the psychology and preferences of customers. Combined with modern design trends, this will create truly impressive vehicles.

In addition, the selling price must be reasonable, because product price is also an important factor in customers' decisions. Businesses said they will rebuild their sales strategies with appropriate pricing.

The combination of quality, modern features, and a reasonable price will benefit customers. Customers will pay less and get more, said Kinoshita, General Director of Toyota Vietnam.

According to VNN