|Car dealers offer huge discounts in time of hardship (Photo: vietnamnet.vn)
The lunar month of July, which began on August 19, is traditionally considered taboo by most Vietnamese for activities concerning large sums of money such as purchasing real estate and cars.
As demands shrink, caused by both psychological fear and difficult economic situations, automobile brands are left with little choice other than providing discounts to help push up sales and maintain market share.
VinFast is offering a direct discount of VND80-120 million by 30 September for every purchase of Lux A2.0 or Lux SA2.0, applied for clients who have previously purchased the Fadil and Lux models.
Ford Vietnam is cutting VND160-220 million off its 2019 Everest 2.0L AT 4WD version, while buyers of Everest versions receive price cuts of around VND60-85 million.
Truong Hai Automobile Group (Thaco)’s Kia Cerato, Soluto and Sedona are being discounted by up to VND60 million . Some Mazda models are also on sale by up to VND40 million.
TC Motor retailers are offering a VND10-50 million reduction for Hyundai Kona, Tucson and SantaFe. Nissan Vietnam is also cutting VND20-40 million for its Sunny, X-trail and Navara models.
Toyota Vietnam retains its promotional programme for purchases of selected Fortuner models by the end of August. Consumers buying the two versions of 2.4 MT 4x2 and version 2.4 AT 4x2 will receive a gift of VND55 million in value.
High-end automobiles are no exceptions. Dealers are putting Honda CR-V 2020, MG HS and ZS, Suzuki Ertiga (Sport) on sale with a reduction of VND10-30 million in price. Buyers of high-end imported cars such as Jaguar and Land Rover are also receiving one-three years of hull insurance.
Firms have high hopes for a revival of car prices as the lunar month of July passes and the COVID-19 pandemic eases off, yet economic uncertainty has caused demands to plunge as consumers narrow down consumption.
Vietnam Automobile Manufacturers’ Association (VAMA) estimated the car demands this year will drop 28% year-on-year and firms continue to decrease prices of many models.
The latter end of the year is usually the time for brands to introduce new models, which means more pressure on the selling side. Many companies have to suffer losses, especially for cars manufactured in the beginning of 2020 and earlier since they will only devalue as 2021 comes.
Car prices may pick up slightly as the lunar month of July is over. The Government support for the automobile industry is also expected to extend to 2021, yet the overall price trend is likely to remain on the low side.
VAMA estimated a negative growth of 15% for the Vietnamese automobile industry in 2020.
The automobile industry contributes 3% to GDP every year on average, equivalent to US$7 billion in 2019. As car sales crash, the economy is taking a hit as firms will restrict production and cut down on staff, according to VAMA.