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The automobile market before the duty free entry

Monday, 31/07/2017

According to the tariff reduction schedule of the Asean Trade In Goods Agreement, in the early of 2018, the import tax on completely Built-Up (CBU) cars under-9-seats from ASEAN countries will be reduced from 30 per cent to 0 percent so that people expect that there will be a sharp decline in the price of cars. This expectation makes the automobile market in the province is quiet now.

Customers come to see the price at Huyndai Vinh Yen dealer, Khai Quang ward, Vinh Yen city.

Many car manufacturers "welcome" the discount

From 1/1/2017, the import tax on CBU cars under 9 seats from ASEAN countries decreased from 40% to 30% according to the roadmap, as a result, many cars were adjusted prices by manufacturers. The price adjustment is not only on CBU cars from ASEAN countries but also on the domestic assembled cars. Accordingly, from February 2017, Thaco Truong Hai has discounted the prices of the models of all three brands: Kia, Mazda and Peugeot. Specifically, the models of the Kia brand have been discounted from VND 10-95 million, in which, Kia Sendano version 3.3L has been reduced the most with a reduction of VND 95 million. The Mazda brand's cars have also been discounted from VND 15-50 million depending on each type, version. In addition, the price of Peugeot models has been also down, including Peugeot 508 and Peugeot 308 Allute reduce VND 60 million. Toyota - the largest car brand in Vietnam, the favorite taste of Vinh Phuc customers, has also cut the price of some models from February 2017, in which, Toyota Yaris G (imported from Thailand) is priced at VND 642 million, down VND 47 million; Toyota Yaris E: VND 592 million, down VND 44 million compared to the previous price. A series of luxury cars imported and distributed by Toyota- Lexus brand has also reduced with the price down to 210 million.

Instead of discounting the price of cars, Hyundai has launched out many promotions to stimulate consumption. Especially, from 1st to 31st, May,2017, Huyndai cut VND 70 million with 2 models: Hyundai Santafe and Huyndai Elantra depending on each version. Huyndai i20 and Accent have been also lost VND 20 million and customers can receive many attractive gift packages if buying cars to welcome summer 2017.

The market is still quiet

Along with the discount of many car manufacturers, many auto dealers in the province have also launched their own promotions to stimulate the consumer demand such as gifts,machine oil promotion, discounting the spare parts, the vouchers of free guarantee ... However, the consumption of cars in dealers is still very slow.

At Huyndai Vinh Yen agent, Khai Quang ward (Vinh Yen City), the number of customers is quite small. Mr. Le Ngoc Anh, Deputy General Director of Huyndai Vinh Yen agent said that Huyndai has been involved in Vinh Phuc automobile market since December 2011. Normally, the beginning of the year is the time when the customers come to investigate prices and order cars. But in 2017, although Hyundai has launched promotions, special offers with the worth up to VND 70 million, the number of customers since February has been low, the sales chart goes down markedly. In April 2017, the sales of dealers only reached 60 cars, down 10% compared to the previous month and down 28% compared to April 2016; the sales of the first 4 months of 2017 of the dealer was only 282 cars, down 27% compared to the same period of 2016. According to the forecast in the coming time, the sales of the agent will continue the reduction".

The consumers should not expect too much

Currently, most of the consumers are psychologically waiting for price reduction in 2018 when the import tax on CBU cars under 9 seats from the ASEAN countries reduces to 0%.

Mr. Nguyen Duc Thanh, Deputy Director in charge of Showroom, Truong Hai Automobile Joint Stock Company, Vinh Phuc Branch said that the price of cars might decrease in 2018, but the reduction would not be much as people are expecting. Therefore, the consumers should also consider their actual needs to decide on purchasing a car and should not expect too much that the car prices would fall down sharply in 2018.

Vinh Phuc News


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