Sale of cars down despite price drop
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Members of the Vietnam Automobile Manufacturers’ Association (VAMA) sold more than 17,600 cars in February, down 13 per cent from the previous month.
At the end of last month, prices of seven types of cars were adjusted, including imported and locally-assembled ones.
Honda Vietnam decreased its price by VND80 million for Accord, which was imported from Thailand. Meanwhile, Toyota Motor Vietnam (TMV) announced new prices for Yaris models G and E, with a drop of VND47 million (US$2,057) and VND44 million, respectively. The imported Land Cruiser Prado TX-L and Land Cruiser VX also saw a revision in prices at nearly VND2.17 billion and VND3.65 billion, down VND264 million and VND70 million each.
Honda Vietnam and TMV were followed by other automakers.
Domestic automaker Thaco reduced the prices of Kia and Mazda models by between VND20 million and VND140 million each.
A report from the People’s Committee in central Quang Nam Province showed that vehicles witnessed the highest inventory volume in the province, which was nearly 49 per cent higher than the previous month and almost triple compared with the same period last year.
This was partly due to the increase in demand for vehicles before the Tet (Lunar New Year) holiday, which declined after the holiday. In addition, people were still waiting for prices to reduce further, especially once the import tax on vehicles from ASEAN countries dropped to zero per cent by January 1, 2018, according to the committee.
“Honda Vietnam decreased its price by VND80 million for Accord, which was imported from Thailand.”
While the consumption of locally-assembled cars was showing a declining trend, the volume of imported cars had sharply increased.
According to the estimate of the General Statistics Office (GSO), Viet Nam imported some 9,000 complete built up units in February, worth $153 million, up 29 per cent in volume in comparison with the previous month but sticking to the same value.
On average, each imported car in February was $17,000 — $4,850 lower than January – which meant almost all imported cars were less expensive.
During the Government’s February meeting session, Prime Minister Nguyen Xuan Phuc reminded relevant ministries about the rapid increase of imported vehicles in the first two months of this year, which was due to the impact of the expected import tax decline in 2018.
He said this was a warning to relevant ministries and sectors to strengthen management to create harmony between import and local auto manufacturing.
Questions & Answers
Q.Which specific car models saw their prices reduced by Honda Vietnam and Toyota Motor Vietnam?
Which specific car models saw their prices reduced by Honda Vietnam and Toyota Motor Vietnam?
Honda Vietnam reduced the price of the imported Accord. Toyota Motor Vietnam announced new prices for the Yaris G and E models, along with the Land Cruiser Prado TX-L and Land Cruiser VX.
Q.What is the primary reason for the increased inventory of vehicles in Quang Nam Province?
What is the primary reason for the increased inventory of vehicles in Quang Nam Province?
The increased inventory is partly due to a decline in demand after the Tet holiday. Also, people are delaying purchases, waiting for further price reductions, especially concerning future import tax changes.
Q.How did the average price of an imported car change in February compared to January?
How did the average price of an imported car change in February compared to January?
The average price of an imported car in February was $17,000, which was $4,850 lower than in January. This indicates that almost all imported cars were less expensive in February.
Q.What concern did Prime Minister Nguyen Xuan Phuc raise regarding imported vehicles?
What concern did Prime Minister Nguyen Xuan Phuc raise regarding imported vehicles?
The Prime Minister highlighted the rapid increase in imported vehicles during the first two months, attributing it to the anticipated import tax decline in 2018. He called for better management to balance imports and local manufacturing.
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