Cars imported from India for 84 million suddenly increased to 285 million VND/car

After nearly a year of stirring up the imported car market in both quantity and price, last April, the number of completely built-up cars imported from India to Vietnam decreased by nearly 3,000 units compared to the previous month.

What is special is that the quantity has decreased dramatically but the price has increased sharply, in the context of the Ministry of Finance and the General Department of Customs being suspicious of car import enterprises declaring false prices and lowering prices when declaring customs to evade taxes.

Cheap Indian cars. Photo: Internet.

Comparing the number of cars imported from India to Vietnam in April 2017 with April 2016, the number of imported cars decreased by more than 1,000 units, although since the beginning of 2016, Indian cars have not yet entered Vietnam as much as in late 2016 and early 2017. Specifically, according to the data just announced by the General Department of Customs, in April, Vietnam only imported more than 176 complete cars from India. Meanwhile, in March, Vietnam imported more than 3,074 units, a decrease of nearly 3,000 units.

Regarding price, Indian cars imported to Vietnam ports are currently at over 285 million VND/car, much higher than the price of 85 million VND/car in March 2017 and 191 million VND compared to April 2016.

Thus, although Indian cars decreased in quantity, their prices increased, which is similar to the scenario and trend of the quantity and price of imported cars to Vietnam in the past 4 months.

Along with the sharp decrease in Indian cars when coming to Vietnam, the market of imported cars in April also witnessed a sharp decrease in the number of Thai cars imported to Vietnam. Specifically, in April 2017, the number of Thai cars imported to Vietnam also decreased by over 50%, reaching only 1,900 units, a decrease of more than 2,300 units compared to March 2017 and a decrease of nearly 400 units compared to April 2016.

However, the declared price of imported cars at the port increased sharply, from 362 million VND/car in March 2017 to about 427 million VND/car (an increase of more than 65 million VND/car).

According to many car import businesses in Hanoi, the average price of cars imported from Thailand has increased because instead of concentrating a large number of pickup truck orders in the previous period, many businesses have now switched to importing multi-purpose vehicles (SUVs) such as 7-seat cars from Mitsubishi, Nissan, Izuzu, etc.

The outstanding feature is that the ex-factory price and selling price of multi-purpose vehicles are higher than the price of pickup trucks, therefore, the average declared price of vehicles from Thailand is higher than before.

However, this is not the case with imported cars from India. The imported cars from this country are still mainly small 4-seat passenger cars of Hyundai. The decrease in imported cars in quantity but the increase in price is a sign that the main enterprises importing these car lines have had to restructure the customs declaration price, increase the price before customs clearance after the order to tighten the calculation of customs declaration price for imported cars from India.

According to VNN