7-seat Crossover cars in Vietnam increase prices simultaneously
Car models in the 7-seat Crossover segment (5+2) in Vietnam have had their prices increased by 5 - 27 million VND by manufacturers in the context of car shortages, with some car models not meeting enough supply to meet consumer demand.
The Vietnamese automobile market is going through a turbulent period as policy changes are having an impact on the product distribution plans of car manufacturers. The number of imported cars in the first 4 months of the year has decreased significantly due to the need to meet the required paperwork and procedures, while some popular assembled car models still cannot meet the demand of the market.
Just last April, most of the 5+2 Crossover models in Vietnam increased their selling prices. |
Cars are in short supply, causing the prices of some car models such as the 5 + 2-seat Crossover, which is considered a trend, not only not to decrease as expected but also to increase by tens of millions of dong. In particular, the presence of the new generation Honda CR-V and domestically assembled models such as the Nissan X-Trail or Mitsubishi Outlander... makes this segment continuously witness attractive races in terms of design and price.
Massive price increase
Honda CR-V is the name that started the "price increase" in the 5 + 2 Crossover segment in the first half of 2018. Not long after the batch of CR-V cars subject to 0% import tax was cleared and sold in the Vietnamese market, Honda immediately announced an increase of 5 million VND compared to the previously announced price. A representative of Honda Vietnam explained that this increase is to compensate for costs during the import process and carry out inspection procedures according to the new regulations of Decree 116. Currently, after the latest price adjustment, 3 versions of Honda CR-V are being distributed with prices ranging from 963 million VND to 1.073 billion VND depending on the version.
Honda CR-V is priced from 963 million VND to 1.073 billion VND depending on the version, an increase of 5 million VND compared to March 2018. |
Meanwhile, despite the poor sales in the first months of the year, Nissan still adjusted the selling price of X-Trail versions to 878 million VND to 1.013 billion VND, an increase of 25 - 27 million VND compared to the price announced in December 2017. According to the representative of Nissan Vietnam, the selling price of this car line has not changed, the company only removed the regular version to keep 3 high-end versions. Therefore, the price of X-Trail feels like it has increased but in fact remains the same. The high-end X-Trail versions are all equipped with standard accessory packages on the body.
Similar to Nissan X-Trail, Mitsubishi Outlander, after nearly 3 months of switching from import to assembly, also adjusted the selling price for the Outlander 2.0 CVT version. Specifically, the increase of 15 million VND from May 2018 has caused the selling price of this version to increase to 823 million VND. Meanwhile, the remaining 2 versions still maintain the same price from 942 million VND to 1.1 billion VND depending on the version.
From May 2018, Outlander 2.0 CVT version increased from 808 to 823 million VND |
Risky move
Each car manufacturer has its own reasons for adjusting the prices of its 5+2 Crossover models. However, this is actually a calculated move for car manufacturers to increase profits in the context of many car models on the market being in short supply and not available for sale.
Currently, some customers who ordered Honda CR-Vs since early April not only have to pay a price difference of 5 million VND but also have to wait until June 2018 to receive their cars, because the first batch of cars arriving in Vietnam has been delivered to customers who placed deposits since the beginning of the year. In addition, many customers who ordered CR-Vs said they had to accept spending at least 20 million VND more to buy an accessory package with "suggestions" from the dealer in the hope of receiving their cars soon.
Increasing the selling price while the design features do not have many breakthrough changes, Nissan X-Trail is making things difficult for itself. |
With innovations in design, along with the switch to importing completely from Thailand, it is clear that Honda CR-V still attracts consumers. Meanwhile, the sudden price increase of Nissan X-Trail or Mitsubishi Outlander is considered by experts to be a risky move. Because in fact, since entering the Vietnamese market, besides technological improvements... the price is considered a significant advantage to help Nissan X-Trail or Mitsubishi Outlander compete with rivals in the segment.
Therefore, the fact that Nissan X-Trail and Mitsubishi Outlander are racing to increase their selling prices while their design features do not have many breakthrough changes, makes these two models difficult for themselves in competing with their rival Honda CR-V, which is currently dominating the 5+2 Crossover segment. Meanwhile, the fact that Honda CR-V is increasing its selling price, is in short supply, and at the same time, some Honda dealers "suggest" that buyers spend more money on accessory packages to receive the car sooner, also affects the reputation and image of the Honda brand in the minds of Vietnamese consumers.