Cars are being offered at drastically reduced prices, up to 200 million VND, in July.

A number of car manufacturers are launching drastic discount programs to stimulate consumer demand. Some car companies are offering discounts of nearly 200 million VND per vehicle to attract the attention of Vietnamese customers.

In July, many car manufacturers in Vietnam continued to launch promotional policies and price reductions to stimulate the market.

Specifically, the Japanese automaker Mitsubishi has significantly reduced the price of its Mitsubishi Pajero 3.0 model by 164 million VND. The current price of the Mitsubishi Pajero 3.0 at dealerships has dropped from 2.12 billion VND to 1.955 billion VND. A price reduction of nearly 200 million VND at once for a single model is considered a risky move by the Japanese manufacturer.

The Gonda Odyssey model has a price reduction of 200 million VND.

Besides the Pajero, many other Mitsubishi models maintain the same price reductions as in June. Specifically, the Pajero Sport is discounted by 50-106 million VND for its two versions. The Mitsubishi Outlander is discounted by 90 million VND directly to the selling price for the 2.0 CVT and 2.4 CVT versions. The Triton pickup truck is discounted by up to 60 million VND depending on the version. The Mitsubishi Mirage is discounted by 50 million VND for both versions. Some other Mitsubishi models, such as the Pajero and Outlander Sport, are not directly discounted but come with gifts worth 48 million VND.

Besides Mitsubishi, the Vietnamese automotive market is also witnessing a price war among numerous other car manufacturers.

In July, Honda surprised its competitors by lowering prices on many car models, with some models seeing reductions of up to 200 million VND. The Honda Odyssey received a 200 million VND discount. The Honda CR-V saw a further price reduction of 10-20 million VND compared to June. The Honda Civic Turbo, a C-segment car, also received a 60 million VND discount. The Honda Accord was discounted by 100 million VND. Finally, the 2017 Honda City, a new model introduced in mid-June, received a cash discount of 10-20 million VND.

Mazda has also simultaneously lowered prices for many models. Specifically, the 2.5L AT version has been reduced from 929 million VND to 899 million VND. The 2.0L version has been reduced from 945 million VND to 915 million VND.

For the 2.0L Premium version, the price has also been reduced from 999 million VND to 969 million VND. Meanwhile, the 2.5L Premium version has had its price adjusted from 1.165 billion VND down to 1.125 billion VND.

In addition, other car manufacturers such as Toyota, Kia, Hyundai, etc., are also offering various discount programs to compete.

Since the beginning of the year, the Vietnamese automotive market has witnessed several drastic price reductions from car manufacturers; however, sales figures for these brands have not been very promising. According to a VAMA report published by VnExpress, Lexus sold only 480 vehicles in the first half of 2017, a decrease of 60% compared to the same period in 2016 (1,171 vehicles). Sales of Audi's large cars with engines over 3 liters also decreased by 20-30%. Porsche Vietnam stated that in the upcoming shipment, only 2-3 vehicles will be equipped with engines over 3 liters, while the rest will be 3-liter models. Sales of Mercedes' largest models have also shifted towards versions with smaller engines.

Regarding car manufacturers' price reductions, Tuoi Tre newspaper reported that, according to many experts in the automotive industry, the main reason for the sluggish market is the mentality of waiting for tax reductions after 2018. A series of promotional programs, gift giveaways, and accessory offers for customers buying cars in recent times are ways for car manufacturers to revive sales.

According to the marketing director of a member of the Vietnam Automobile Manufacturers Association (VAMA), the demand-stimulating policies implemented recently are part of a business plan. Some manufacturers only advertise to potential customers, while others run extensive mass media campaigns and encourage dealers to offer very low prices…because most customers are waiting for the tax to be reduced to 0% in accordance with ASEAN integration commitments in 2018 before buying a car.

According to Life & Law