Thai and Indonesian cars flood in: Cars reduced in price by hundreds of millions

Relieve the thirst for imported cars

Toyota Vietnam said it will import up to 7 models at the same time, including Fortuner, Yaris, Hilux, Hiace, Wigo, Rush and Avanza. Of these, there are 3 new small-sized models: Wigo, Rush and Avanza. Wigo is a small-sized car, in the A-segment, competing with rivals Kia Morning and Hyundai i10, with a selling price of 300-400 million VND. Meanwhile, the Rush model is a small SUV and Avanza is a small-sized MPV, in the B-segment.

GM Vietnam has introduced the 7-seat SUV Trailblazer. Currently, some dealers have accepted deposits for this model with a price of less than 1 billion VND. The Chevrolet Trailblazer is of great interest to Vietnamese customers and will compete with Toyota's Fortuner. Along with that is the Colorado model in the pickup segment.

Mitsubishi Vietnam will bring the MPV Xpander model to the country. The car is manufactured in Indonesia, has 4 versions using a 1.5L engine, 104 horsepower capacity, selling price equivalent to 321-427 million VND.

Meanwhile, Ford Vietnam will bring in the Ranger Pickup model, while Suzuki will have the Celerio 2018 model. Along with 4 models of Honda Vietnam: CR-V, Civic, Jazz, Accord,... the car market will have many and diverse types, belonging to all segments.

According to the enterprises, once the procedures are completed, these car models will be available for sale at dealers nationwide by early July at the latest. Many models will be available in large quantities to reduce costs and time due to batch testing. The car market will be relieved of the shortage of imported cars. Car prices will be very competitive.

Domestic cars are worried about coping.

Regarding domestically assembled cars, Hyundai Thanh Cong said it will launch the Accent model in mid-April 2018. This is a B-segment car assembled at the factory in Ninh Binh and has a very competitive price.

According to Mr. Le Ngoc Duc, General Director of Hyundai Thanh Cong, in preparation for competition with 0% tax imported cars from ASAEN, the company has asked partners and suppliers of foreign components to share in order to get a more reasonable price and aim for long-term development in the Vietnamese market. Along with that, it is necessary to rearrange production, optimize all activities and increase output. Only then will the selling price be the most reasonable.

Many domestically assembled car models are being aggressively discounted, promoted, and improved after-sales service quality by businesses to compete.

GM Vietnam has also just announced car prices for April 2018. Some domestically assembled car models have a discount of up to 60 million VND compared to the announced price.

Specifically, the B-class sedan model Chervolet Aveo 1.4 MT version is reduced by 60 million VND; the small car model Spark LS is reduced by 15-30 million VND; the domestically assembled C-class sedan model Chevrolet Cruze is reduced by 30 million VND; the Captiva model is reduced by 20 million VND.

At some Toyota Vietnam dealers, the Vios model has been discounted by 10-30 million VND. Specifically, the 1.5E version has been reduced by 30 million VND compared to March, to about 483 million VND. The two versions Vios 1.5G (CVT) and 1.5G TRD (CVT) have been reduced by 10 million VND, with new prices of 537 million VND and 569 million VND, respectively.

For the Innova model, Toyota has a program to give away a 1-year Toyota body insurance package or an accessory package worth 15 million VND to customers who buy 3 versions V, G and Venturer from April 1 to May 31. In addition, these models are also discounted by dealers by another 10-20 million VND. In addition, with a wide range of genuine insurance packages, customers will be compensated for stolen parts up to 3 times/year, supported with car rental costs while waiting for repairs, and receive compensation according to the initial agreed value of the car, instead of the value at the time of the loss...

Domestic car models that are increasing in price at this time are expected to quickly decrease in price when imported cars flood in, otherwise it will be difficult to maintain sales and market share.

Meanwhile, over the past week, many localities and ministries and branches have proposed preferential policies for domestic automobile production.

In a document sent to the Prime Minister, the People's Committee of Ninh Binh province has proposed exempting special consumption tax (SCT) on domestically produced components and spare parts used to manufacture and assemble cars with 9 seats or less.

In early April, the Vietnam Mechanical Engineering Association sent a document to the Ministry of Finance and the Ministry of Industry and Trade proposing to exempt special consumption tax for the value of domestic production that meets quality standards, applicable to automobile products. In addition, import tax on raw materials and materials should be exempted for manufacturers of auto parts and components investing in Vietnam.

Being the home of many major car manufacturers such as Toyota and Honda, Vinh Phuc Provincial People's Committee said that the number of cars produced in 2017 in Vinh Phuc decreased by 20% compared to 2016, and 2018 is forecast to be even more difficult due to the influx of imported cars enjoying 0% tax. Therefore, the Provincial People's Committee proposed that the Government have preferential policies to develop domestic car production.

According to the Vietnam Mechanical Engineering Association, if the proposal to exempt special consumption tax on domestically produced components and import tax on raw materials for component production is approved, the price of domestically assembled cars will decrease. At that time, domestic cars will have a competitive advantage over imported cars, causing car prices in the market to decrease.