New cars are coming out in droves, cars are on big sale in 2017

Car sales in 2017 are forecasted to be difficult, the reason is that many customers will postpone buying cars, waiting for 2018, when taxes will be reduced, so car prices will decrease. To increase sales, car companies will continue to heavily discount and promote.

Launch of a series of new cars at the beginning of the year

In the first half of January 2017, auto companies launched 6 new car models, changing from design to interior features, creating strong competition, making the auto market more and more vibrant, and selling prices decrease.

The first model to be launched is the new generation Fortuner, imported by Toyota Vietnam for distribution, with 3 versions. This model has a selling price from 981 million to 1.308 billion VND.

Next is the new Pajero Sport of Mitsubishi Vietnam, with prices ranging from 1.329 to 1.488 billion VND.

New cars are coming out in droves, cars are on big sale in 2017

Near Tet, the car market is increasingly vibrant, selling prices are decreasing.

Truong Hai also launched two models, the Mazda 6 and Kia Redondo. The new Mazda6 has three versions: 2.0L (standard version) priced at VND975 million; 2.0L Premium priced at VND1.02 billion and 2.5L Premium priced at VND1.175 billion.

Kia Rondo 2017 appeared with many strong changes and has 4 versions to choose from, including 1 version using Diesel engine and 3 versions equipped with gasoline engine. In which, 1.7L Diesel engine has a selling price from 654-857 million VND.

Honda Vietnam also launched the 10th generation Civic model imported completely, one version with a selling price of 950 million VND.

Ford Vietnam introduces to customers the Focus Trend version, equipped with a 1.5 EcoBoost engine and priced 150 million VND cheaper than the Titanium version. The Trend costs 699 million VND for both the sedan and hatchback versions, while the Titanium has a listed price of 848 million VND. With a gap of 150 million VND, the Trend version lacks more options than the Titanium.

With a series of new car models launched focusing on the 7-seat SUV segment and C and D-class sedans, competition in the auto market has been vibrant since the beginning of the new year.

New cars are coming out in droves, cars are on big sale in 2017

Big sale continues

The Vietnam Automobile Manufacturers Association (VAMA) forecasts that in 2017, the Vietnamese automobile market will only grow by 10% compared to 2016. In 2016, the growth rate was 24%. This is a rather low forecast, because consumer demand for automobiles remains high.

However, businesses said that car sales will be difficult in 2017 because many customers will temporarily stop buying cars, waiting for 2018, when tax reduction will lead to a sharp drop in car prices.

From 2018, the import tax on cars to Vietnam from the ASEAN region will be 0%, while the special consumption tax on cars with cylinder capacity under 1.5L will be reduced to 35% and from 1.5L-2.0L will be reduced to 40%, then the car price will decrease.

Currently, imported cars to Vietnam have a selling price 2.6-3.6 times higher than the import price, so cheap cars are still not cheap. However, from 2018, taxes will be reduced sharply, so the price of imported cars is expected to decrease by about 20-30% compared to the present.

It is predicted that the auto market in the coming time will have many car models continue to have big discounts.

Some businesses said they will try to increase sales in 2017. However, to do this, they must have a reasonable pricing policy.

"We accept lower profits to increase sales. When sales increase, there is more basis to reduce selling prices. Lower car prices promote further sales growth. The problem is to make customers see that buying a car in 2017 is not much different from 2018," said a representative of an auto company.

Currently, among the new car models, there are cars equipped with many modern features, but the selling price is hundreds of millions of dong lower than competitors in the same segment. This certainly makes it difficult for other businesses to sit still and have to think about how to compete.

For example, when the 2017 Fortuner model was launched, with a selling price ranging from 981 million VND to 1.308 billion VND, its competitor, Mitsubishi Pajero Sport, immediately had to adjust the price down, from the expected price of 1.4 billion VND and 1.55 billion VND to 1.329 billion VND and 1.488 billion VND.

This predicts that the auto market in the coming time will have many car models continue to have big discounts, and increase attractive promotions to stimulate demand and attract customers, despite some objective factors affecting the cost increase.

According to Vietnamnet