Car prices fall as supply rises
In this article (5)
An abundant supply of imports, the introduction of new models and stiffer competition have pulled car prices down, industry insiders say.
Toyota Innova, among the most popular multi-purpose vehicles (MPVs) in Vietnam, saw its price go down 13 percent year-on-year last month to VND771 million ($33,360).
Industry insiders said the drop of VND100 million ($4,330) was unprecedented for this model. Innova only reflected a general trend, they added.
Prices of the Toyota Vios sedan and the hatchback Kia Morning fell 13 percent and 12 percent, respectively. In the high-end segment, the prices of BMW cars fell 18.5 percent.
Abundant supply is said to be one of the main factors behind the falling prices.
Car imports in the first 11 months of last year doubled year-on-year to almost 133,700 units, most of them from Thailand and Indonesia. Models with the biggest sales, MPV Mitsubishi Xpander and SUV Toyota Fortuner, were all imported.
Tightening credit from banks last year had made it more difficult for buyers, leading to an increase in inventory that had to be reduced by lowering prices. The introduction of new models was another factor.
Vietnam’s newest car manufacturer VinFast also intensified competition in the market with its SUVs, sedans and hatchbacks.
Auto sales in Vietnam last year rose 11.6 percent from 2018 to 322,322 units, with 58.8 percent of them locally-assembled, according to the Vietnam Automobile Manufacturers Association.
Questions & Answers
Q.What were the main reasons cited for the recent fall in car prices?
What were the main reasons cited for the recent fall in car prices?
Industry insiders attributed the price drop to an abundant supply of imports, the introduction of new models by manufacturers, and stiffer competition within the market. Tightening credit from banks also made it more difficult for buyers, increasing inventory.
Q.Which specific car models were mentioned as having experienced price reductions?
Which specific car models were mentioned as having experienced price reductions?
The Toyota Innova saw a 13 percent price fall. The Toyota Vios sedan and Kia Morning hatchback also dropped by 13 percent and 12 percent respectively. In the high-end sector, BMW cars experienced an 18.5 percent price reduction.
Q.How much did car imports increase in Vietnam during the first 11 months of last year?
How much did car imports increase in Vietnam during the first 11 months of last year?
Car imports in the first 11 months of last year doubled compared to the previous year, reaching almost 133,700 units. Most of these imported vehicles came from Thailand and Indonesia, contributing significantly to the increased supply.
Q.What was the total volume of auto sales in Vietnam last year and what proportion was locally assembled?
What was the total volume of auto sales in Vietnam last year and what proportion was locally assembled?
Auto sales in Vietnam last year rose by 11.6 percent from 2018, totalling 322,322 units. Of these sales, 58.8 percent of the vehicles sold were locally assembled within Vietnam, according to industry figures.
Reader pulse
Are Vietnam's car prices sustainable?
16,213 votes so far