11/03/2017 07:36 GMT+7 Email Print Like 0

Despite price drop, car sales dip 13 percent in February

This is the second month this year that the association has witnessed a drop in sales, although its members continuously reduced prices of their products. 

At the end of last month, prices of seven types of cars were adjusted, including imported and locally-assembled ones. 

Honda Vietnam decreased its price by 80 million VND (3,500 USD) for Accord, which was imported from Thailand. Meanwhile, Toyota Motor Vietnam (TMV) announced new prices for Yaris models G and E, with a drop of 47 million VND and 44 million VND, respectively. 

The imported Land Cruiser Prado TX-L and Land Cruiser VX also saw a revision in prices at nearly 2.17 billion VND and 3.65 billion VND, down 264 million VND and 70 million VND each. 

Honda Vietnam and TMV were followed by other automakers. 

Domestic automaker Thaco reduced the prices of Kia and Mazda models by between 20 million VND and 140 million VND each. 

A report from the central Quang Nam Province’s People’s Committee showed that vehicles witnessed the highest inventory volume in the province, which was nearly 49 percent higher than the previous month and almost triple compared with the same period last year. 

This was partly due to the increase in demand for vehicles before Tet (Lunar New Year) holiday, which declined after the holiday. In addition, people were still waiting for prices to reduce further, especially once the import tax on vehicles from ASEAN countries dropped to zero percent by January 1, 2018, according to the committee. 

While the consumption of locally-assembled cars was showing a declining trend, the volume of imported cars had sharply increased. 

According to the estimate of the General Statistics Office (GSO), Vietnam imported some 9,000 complete built-up units in February, worth 153 million USD, up 29 percent in volume in comparison with the previous month but sticking to the same value. 

On average, each imported car in February was 4,850-17,000 USD lower than January – which meant almost all imported cars were less expensive. 

During the Government’s February meeting session, Prime Minister Nguyen Xuan Phuc reminded relevant ministries about the rapid increase of imported vehicles in the first two months of this year, which was due to the impact of the expected import tax decline in 2018. 

He said this was a warning to relevant ministries and sectors to strengthen management to ensure fair competition between imports and local auto manufacturing.