Volkswagen offers $20K discount

1 min readSep 13, 20241:06 PM

German auto brand Volkswagen has cut the prices of three models in Vietnam by VND140-500 million (US$5,700-20,300) this month.

The Teramont now costs VND2 billion, down VDN500 million, or 20%, from its original price tag.

The full-size SUV, which is imported from the U.S., has high-end entertainment features such as an 11-speaker audio system and 8-inch screens.

The Teramont X, which starts at around VND2 billion, comes with a discount of VND99-130 million depending on locality. It is imported from China.

The Touareg, imported from Slovakia and priced at up to VND3.05 billion, is being sold at discounts of VND134-182 million.

Volkswagen announced the discounts after major brands such as Honda, Toyota, Nissan, Subaru, and Suzuki all cut their prices.

Vietnam Automobile Manufacturers Association members’ sales rose by only 1.1% year-on-year in the first seven months to 163,800 units.

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What this means

Volkswagen's aggressive price cuts in Vietnam, including a 20% drop on the Teramont, are a necessary reactive measure. The sluggish 1.1% year-on-year sales growth reported by Vietnam Automobile Manufacturers Association members indicates a fiercely competitive market where rivals have already initiated price reductions. This move directly pressures competitors who have not yet matched the scale of these discounts, especially given the high-end features of the discounted models. The primary risk is that deep cuts erode profit margins without guaranteeing significant sales volume, mirroring the cautious expansions seen in other Asian luxury markets. Volkswagen must now demonstrate these discounts can reverse its sales stagnation. Watch for Volkswagen's sales data for August and September to gauge immediate impact.

Maria Santos

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