Cheap cars flood the Vietnamese market in 2018

At the Vietnam Motor Show 2017 (VMS 2017), many domestic car manufacturers launched low-cost car models, this could be a new trend in the Vietnamese market.

On August 1, the Vietnam Motor Show (VMS 2017) just took place, but many car manufacturers have revealed information about some of their products. Among them, many cheap car models under 400 million VND were launched.

Cheap cars are the trend?

Specifically, Toyota will introduce 2 low-cost car models in 2 different segments, in which, Toyota Wigo will target the low-cost car segment and Toyota Avanza will target the B-class MPV segment. The selling price of these two models has not been announced by Toyota.

Toyota Wigo is sold in Indonesia for 240 million VND.

However, the expected selling price will be around 400 million VND. Because Toyota Wigo is sold in Indonesia for 240 million VND, and Toyota Avanza is sold in Indonesia for 307 million VND.

If the difference between Vietnam and Indonesia's taxes is about 100 million VND, these two car models will be officially sold at a price of about 400 - 450 million VND.

Toyota's two low-cost models will be sold in early 2018. In the case that the Wigo and Avanza models are imported completely from Indonesia or Thailand, the selling price in early 2018 will be much cheaper, even a difference of several tens of millions of VND due to the reduction of import tax to 0% according to the ASEAN Free Trade Agreement (AFTA).

Toyota Avanza is sold in Indonesia for 307 million VND.

Suzuki also launched its low-cost car model, Celerio. Celerio is distributed in Thailand with 3 versions, starting price from 359,000 baht (about 227 million VND).

Suzuki Vietnam has not yet announced the detailed price of the car, however, many people expect the Celerio to have a higher price of about 150 million VND and be in the price range of around 400 million VND, the equivalent price of cheap cars.

Alongside the new Celerio, Suzuki will introduce an upgraded version of the Swift.

In addition to the three "new" car lines, car manufacturers also focus on upgrading products already sold in Vietnam. Among them, there is a "rumor" that the new Suzuki Swift model will be introduced at this exhibition.

Honda will also launch its low-cost model called Jazz. In the Thai market, the Honda Jazz 2017 has a price range of 594,000 - 754,000 Baht, equivalent to 390.5 - 495.7 million VND. And in VMS 2017, Honda is likely to focus on this model.

What opportunities are there for the low-cost car segment?

In the Vietnamese market, the low-cost car segment is a fierce competition between Kia Morning and Hyundai Grand i10, these are two models that seem to have no rivals in the same segment.

Consumers explain that in the price range of under 400 million VND, it is difficult to find a car model that meets the criteria of "delicious-nutritious-cheap" like Kia Morning or Hyundai Grand i10. Not counting used cars, Kia Morning and Hyundai Grand i10 help Vietnamese people easily access cars.

In the segment under 500 million VND, Toyota Vios is a tough competitor to all products of the same price. In terms of brand, Toyota almost completely wins the trust of domestic consumers.

Regarding product quality, it is highly appreciated in the market. Although there are still some controversies about the car, but there is a version of Toyota Vios which is the most successful car model in the Vietnamese market.

In the Vietnamese market, the low-cost car segment is a fierce competition between Kia Morning and Hyundai Grand i10, these are two models that seem to have no rivals in the same segment.

A representative of a car dealer in Hanoi said that cheap car models are the mainstream trend for many Vietnamese people: "I don't know about genuine car dealers like that. However, in terms of private dealers, cheap car products are being consumed quite well compared to the general level."

This person commented that car manufacturers are still continuing the price reduction war, however, the low-cost car segment is out of this race. In general, manufacturers only slightly reduce the low-cost car segment, especially Toyota Vios, which has a price reduction of several tens of millions of dong, which is considered "shocking".

"Most likely, in early 2018, companies will sharply reduce the price of cheap cars and return them to their true value," he said.

According to VNN