Cars priced around 200 million 'flood' into Vietnam

Several new car brands will enter the Vietnamese market after 2018, targeting the small, low-priced segment for middle-income people.There are car models with predicted prices of only 200 million VND.

Formidable new rivals

A source said that Daihatsu will soon return to the Vietnamese market with small, low-priced cars. Daihatsu, a member of the Toyota group, specializes in producing small cars with engines of 1.5L or less, and has become a best-selling small car brand in many markets in the Southeast Asian region.

Daihatsu has its main production base in Indonesia. The most famous of the small cars produced here is the Ayla, which is extremely cheap, only equivalent to about 200 million VND. At the Vietnam Auto Show 2017, Toyota Vietnam introduced the Wigo model, which is actually the Ayla because it has 90% in common, only different 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, low-cost segment.

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

Two Malaysian car companies are also looking to “jump into” the Vietnamese market after 2018, namely Proton and Perodua. In Malaysia, Proton and Perodua account for 48% of the car market share.

Proton has 8 car lines, with prices ranging from about 200 million VND to 700 million VND. Meanwhile, Perodua only produces 4 car lines in the A-segment, with prices ranging from about 130 million VND to 360 million VND.

The advantage of Malaysian domestic cars is that they are cheaper than products of Japanese brands, while the equipment technology is almost equivalent.

For example, Proton has the Persona model in the B-segment, competing with the Toyota Vios and Honda City. Similar in size, equipped with many technologies, but the Persona is priced from RM 56,130 (about 303 million VND). Compared to the Honda City, the Persona is about 106 million VND cheaper and the Toyota Vios is about 154 million VND cheaper.

The low-cost small car segment will be fiercely competitive in the coming time.

In addition, many car manufacturers currently present in Vietnam will also bring in new products in the small-sized segment. Honda Vietnam has introduced the Jazz model, while Toyota Vietnam introduced the Wigo model. In the coming time, Suzuki, Nissan, Mitsubishi,... will also continue to introduce cheap small-sized car models.

This signals fierce competition in the small, low-cost car segment in the auto market in the coming time. Kia Morning, Hyundai Grand i10, Chevrolet Spark, Toyota Vios, Honda City,... are about to face more formidable opponents.

In 2018, import tax on completely built-up cars from ASEAN to Vietnam will be reduced to 0%. In addition, special consumption tax on cars with cylinder capacity of 1.5L or less will be reduced to 35%, cars with cylinder capacity of 1.5L-2.0L will be reduced to 40%. According to calculations, small imported cars will have a strong discount. At that time, many small car models will cost only 350 million VND or less.

Not only that, with the "entry" of new brands and new products, it will bring diversity to the auto market and consumers will have more choices.

Pay less, use more

Enterprises believe that competition in the automobile market from 2018 will be fierce. The small, low-cost car segment will be the most exciting. Without a good plan, it will be difficult to survive.

The product strategy shared by many car companies is to constantly improve quality and add more features, even with low-cost models. This will bring excitement and help attract customers better.

Many cheap small car models are imported from abroad.

In the near future, high-tech car models will appear in Vietnam. The cars will be equipped with speed advisory systems, updating traffic conditions on the roads ahead, helping to reduce congestion.

New technologies such as self-parking with one-touch operation on the car will be widely equipped,... Even the color of the cars also has many changes to suit the psychology and preferences of customers. Combined with modern design trends, it will create impressive cars.

Along with that, the selling price must be reasonable, because the product price is also an important factor in the customer's decision. Enterprises said they will rebuild their sales strategy with appropriate selling prices.

The combination of quality, modern features and reasonable prices will benefit customers. Customers will pay less and use more, said Mr. Kinoshita, General Director of Toyota Vietnam.

According to VNN