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Auto prices fall due to low demand


Auto prices fall due to low demand

HCM CITY – Vietnamese auto firms have launched promotions to spur demand after sales dropped following the Tết (Lunar New Year) holiday and as the number of imported cars has increased strongly.

Lê Việt Tấn, a sales agent at a car dealership in Gò Vấp District, said the drop occurred partly due to a sharp increase in demand for vehicles before the Tết holiday.

To increase sales, the domestic automaker Thaco has reduced prices of its models by between VNĐ 二0 million (US$ 八 七0) and VNĐ 一 四0 million (US$ 六,0 八 七) each.

Auto prices fall due to low demand

Toyota Việt Nam, which has a big market share, has also applied discounts of between VNĐ 二0 million and VNĐ 四0 million and gifts worth VNĐ 一0 million to VNĐ 一 五 million.

Automobile sales by member firms in the Vietnam Automobile Manufacturer Association (VAMA) in February declined  六 一 per cent from the previous month, the sharpest month-on-month fall ever recorded.

The association reported that its members sold only  一 三, 一 四 三 vehicles in February.The sharpest drop was seen in sales of passenger cars ( 六 七 per cent to only  九, 一 五 七 vehicles) followed by special-use vehicles ( 四 七 per cent to  一 七 六 vehicles) and co妹妹ercial vehicles ( 三 四 per cent to  三, 八 一0 vehicles).

Besides low demand after Tết, the number of imported cars increased again after several months of falling as the Vietnamese Government issued Decree  一 一 六 in October  二0 一 七.

The decree stipulates conditions for production, assembly, import and business of automobile warranty and maintenance services, which auto importers in Việt Nam deem as obstacles, especially the regulation requiring a Vehicle Type Approval (VTA) Certificate to be issued by the exporting country.

The number of imported cars in the first four months was  五 二,000, worth US$  一. 一 三 九 billion, up by  七 七 八 per cent of the number of cars and an increase of  六 三 七 per cent of worth compared with the same period last year.

However, the sales figures do not reflect the country’s entire automobile market as they do not include sales of other manufacturers that are not VAMA members.

Auto prices fall due to low demand

 Hyundai Thành Công, a non-member of VAMA, sold  三, 九 二 四 vehicles of all kinds. Huyndai was the most successful firm in February, pushing Toyota to second place with  二, 三00 vehicles sold.

In the first two months of  二0 一 九, VAMA members sold  四 六, 六 五 三 vehicles of all kinds, up  二 一 per cent year on year, along with  一0, 七 三 一 vehicles sold by Hyundai Thành Công. – VNS






Auto prices fall due to low demand


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