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Vietnam auto sales down, despite discounts

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An assembly line at Hyundai Thành Công Automobile Factory in northern Ninh Bình Province. VNA/VNS Photo

Vietnam auto sales down, despite discounts

Despite huge reductions in the price of motor vehicles, car dealerships say sales have been unexpectedly slow in recent weeks.

Cut price deals, in some cases reductions of tens of millions of dong during recent holidays, failed to attract the expected amount of buyers.

Nissan Vietnam slashed prices by up to 70 million dong ($3,000) for buyers of Sunny, Navara, X-Trail and SUV Terra vehicles. They also offered deals for registration fees and offered free gifts with certain cars.

Isuzu also offered similar sale prices along with Toyota Motor Vietnam (TMV) and BMW, but again, sales slowed.

According to the latest report from the Vietnam Automobile Manufacturers’ Association (VAMA), the total sales in April were 21,021, down 35 per year compared with the previous month.

Still a drop

Taking into account the sales of 6,176 vehicles of Hyundai Thanh Cong and VAMA member units, the whole Vietnamese automobile market last month reached 27,197 vehicles which was still a drop of more than 29 per cent month-on-month.

A VAMA representative, who wanted to remain anonymous, told Vietnamplus that one reason for the downtrend was because of the government decision to increase registration fees for pickup trucks from two per cent to 7.2 per cent applied from early last month, reducing purchasing power.

“However, the most important factor is that April is not the season of car purchases and the change of consumers’ demand due to increasing traffic congestion in urban areas and the hike of fuel that all can make people gradually convert to public vehicles, helping them save money,” he said.

Insiders said that while the discount programmes were launched on various car models, the dealers increased the prices of a number of “hot cars”, requiring customers to buy more accessories for cars from tens of millions of dong to hundreds of millions of dong that caused a loss a number of customers.

Meanwhile, with the information that some new attractive models such as Hyundai Elantra, 2019 Hyundai Tucson, Toyota Camry 2019, Honda Brio and Subaru Forester, which have many noticeable upgrades, will be imported to Vietnam this month with prices much lower than the previous versions, many customers delayed buying cars in April and to wait for the new ones. VIET NAM NEWS/ASIA NEWS NETWORK


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