Will there be a car price reduction race next June?
Many forecasts say that car prices this June will decrease significantly in the context of an increasing number of imported cars from markets enjoying 0% preferential tax.
Provisional statistics from the General Department of Customs show that in May 2018, there were approximately 2,000 cars imported into Vietnam. Of these, cars with less than 9 seats accounted for nearly 1,500 units, and more than 85% of these were imported from Thailand with an import tax of 0%. If calculated cumulatively from the beginning of the year until now, the number of cars imported from Thailand has completely overwhelmed the imported car market, and many shipments have completed inspection to bring cars to the market.
In addition, after Honda and GM, according to information from importers, Japanese car manufacturer Mitsubishi has also completed the procedures for vehicle type certification from the Thai government. As expected, in June, the first batch of Mitsubishi cars will arrive at Vietnamese ports.
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| The sharp increase in imported cars is expected to lead to price cuts to compete for market share. PHOTO: NGOC DUONG |
A car dealer in Ho Chi Minh City said: “The car market this June will definitely be bustling. It is predicted that there will be fierce competition in price reduction promotions between domestic manufacturers and foreign importers. According to the information we have, so far there have been 3 car brands that have been granted type certification to meet the regulations in Decree 116 from countries within the bloc. And so, the imported car market enjoying 0% tax will not only have Honda and Chevrolet models but will also have Mitsubishi sports models.”
According to records, in addition to price reductions, manufacturers have also paid attention to launching many models in different segments to increase market coverage. Currently, new car models from the preferential tax markets of Honda and Chevrolet have arrived in Vietnam. Recently, some car models from Europe - where import taxes are high such as Slovakia, Hungary, Spain, Germany and Mexico - have also been imported to Vietnam to explore the market.Obviously, compared to cars from the ASEAN market, cars imported from Europe and America will be at a disadvantage when having to pay import tax. However, according to car dealers, many consumers still ask about the Cross Polo, Tiguan Allspace of Volkswagen, Futuner of Toyota or Avanza, Pajero and Triton of Mitsubishi.
