The car market will be hot in May

Imported cars will be swept away, the car market will fluctuate hot next month. Photo

Winners and losers

Import tax on imported motor vehicles in the region decreased sharply from 30% to 0%, however domestic car prices, including imported cars, were not really affected by tax. The dynamics of increasing and decreasing the selling price of cars are mainly regulated by the market, depending on the supply and demand factors, as well as the calculation of enterprises.

Turning to April, many car manufacturers announced discounts. Significantly, the Pajero model was imported from Mitsubishi, Japan, with a reduction of 164 million VND. The price of this SUV at dealers is 1.956 billion VND (including VAT). Along with that, the Mitsubishi Mirage MT Eco also received a discount of 25 million VND. Selling price of this model at the dealer is only 345 million.

In line with the downward trend this April includes the imported Nissan Teana. Japanese car prices down to 104 million VND for a 5-seat Teana model. According to the new price list, Nissan Teana will reduce from 1.299 trillion (billion?) dong to 1.195 trillion (billion?) dong (for Teana 2016 and 2017 versions). When launched in 2017, Nissan Teana was priced at 1.49 billion.

This April the model Toyota Vios is also discounted. At some dealers, Toyota Vios 1.5E is reduced by 30 million, dragging prices down to 483 million VND. Two versions of Vios 1.5G (CVT) and 1.5G TRD (CVT) received a discount of 10 million dong, with new prices of 537 million dong and 569 million dong, respectively.

In April, the car market has a sample of hundreds of millions of dong, but there are many samples increase (In April, the car market has some car models discounted by hundreds of millions of dong, while for many other models the prices will increase.)

The same situation applies to the US car company, Chervolet, with reductions of up to 60 million VND. Specifically, model B class Chervolet Aveo 1.4 MT is reduced by 60 million VND. Small car, Spark LS, is reduced 15-30 million VND. The C-class sedan assembled as the Chevrolet Cruze, is down 30 million VND. The Captiva car is reduced by 20 million VND.

However, in April, many automakers in Vietnam have acted to adjust the retail price of many cars. At the opening ceremony was Honda Vietnam. This manufacturer suddenly increased the price of four imported cars by 5 million VND, despite enjoying imported tax duty of 0% from Thailand. A small increase, but this impacts on customer’s psychology because this is the first batch of imported cars enjoying a reduction of import tax from 30% to 0%

Specifically, according to the new price list, Honda CR-V retail price range is from 963 million to 1.73 billion, depending on the version. Honda Civic has a new price ranging from 763-903 million VND. The Honda Accord D sedan increased from 1,198 billion to 1,203 billion VND. Finally, the small urban model, Honda Jazz, is priced from 544 to 644 million VND.

While discounting the Teana model, Nissan has increased the prices for two cars, which are the Nissan Sunny and X-Trail, by 20-25 million VND. Specifically, all five versions of the X-Trail SUV series increased by 25 million VND. Nissan X-Trail's new sale price ranges from 878 million to 1,013 billion VND, depending on the version. The Nissan Sunny XV model is adjusted from 468 million to 439 million VND.

Hyundai Motor Korea also adjusted with an increase of 20 million VND for 11 products in Vietnam. Accordingly, Hyundai Elantra increased retail prices from 9-20 million VND, depending on the version. Specifically, Elantra 1.6AT increased 20 million VND, Elantra 1.6MT increased 11 million VND and Elantra Sport increased 9 million VND.

Hyundai Santa Fe also increased by 10-20 million VND, depending on the version. Specifically, the Santa Fe 2.4 standard gasoline engine is priced at 908 million VND, priced Santa Fe 2.4 petrol engine especially 1.040 billion VND. The remaining two machines have the new prices of 980 million and 1.090 billion VND. All three versions of the Grand i10, 1.2L model, also increased by 10 million VND, the current price increased from 340-405 million VND; Four versions of the Hyundai Tucson added 10 million VND, the new price ranges from 839 to 900 million VND.

As can be seen, the automobile market in Vietnam is always unpredictable, especially in the context when imported supplies are abundant, new cars will come in a short time.

Many new names appear

Starting in April, and expected in May and June, dozens of imported vehicles will be built in bulk in Vietnam, notably the source of goods is from Thailand and Indonesia, which was blocked by Decree 116, but now eligible for import.

According to information from Hiep Phuoc port (HCMC), after Honda Vietnam, there are more businesses that have opened customs declaration procedures for import cars under 9 seats. For example: General Motors Vietnam Co. Ltd., has imports of 370 Chevrolet vehicles (including Trailblazer and Colorado pickup truck models); Ford Vietnam Co. Ltd., imported 2 Ford vehicles, and Sweden Auto Ltd., imported 52 Volvo cars ...

Tiguan Allspace 2018; Volkswagen’s expected model has officially docked in Vietnam and is to marketed to consumers in May 2018.

Completing the import procedures as prescribed, Toyota Vietnam (TMV) will also import seven models at the same time, including Fortuner, Yaris, Hilux, Hiace, Wigo, Rush and Avanza.

According to the information disclosure from this company, next month, the first batch of imported cars in 2018 of TMV enjoying preferential import tax of 0% will land in Vietnam. TMV's first batch of cars will be available for about 1,000 vehicles, including models like, of Toyota Fortuner and Wigo. In July and August, an amount of imported TMV vehicles will go back to the exporting country due to the number of vehicles that the plant will be able to handle.

The market appears with more models, what will be the price?

Mitsubishi Vietnam will bring the MPV Xpander model into the country. They were made in Indonesia, there are four versions with 1.5L engines, 104 horsepower capacity, with a selling price of between 321-427 million.

There is a bit of difficulty due to reduced factory orders, but Ford Vietnam is also trying to bring in some imported models, including Pick up Ranger, Explorer ... Suzuki, and also Celerio 2018 model ...

In the premium segment, Mercedes-Banz Vietnam also revealed that the first batch of imported cars this year also reached Vietnam. Only within a few days this batch of cars will be completed with procedures for the consumer.

The car market is not only about imports, mid-April, Hyundai Thanh Cong will launch the Accent model in mid-April 2018. This is a class B car that is assembled at a factory in Ninh Binh and has a very competitive price. Ford Vietnam also launched its flagship model, the Eco Sport, at a competitive price…

There are new series models of car coming out, so it is forecasted that auto market will be very exciting in May. Consumers will have more choices. But the point that most people look forward to is the price. If the import tax is reduced, buying cars is much more attractive, is it time for consumers to buy cars cheaper than before or not?

In terms of economic problems, greater supply reduced taxes means prices will fall. So let's wait and see what the prices will be.