A number of large manufacturers slashed car prices in early October, signaling a fierce race in the Vietnamese auto market.
The market is getting busier as the peak shopping season of the year is near and manufacturers have begun slashing prices.
Sales agents are offering attractive preferences to attract people who want to buy cars before the 50 percent luxury tax reduction policy expires, slated for December 31, 2020.
VinFast, the Vietnamese manufacturer, is offering a price discount of VND25 million for the premium version from October 15 to October 31. In addition to the 50 percent registration tax reduction under current policy, car buyers can also enjoy the other 50 percent registration tax reduction offered by the manufacturer.
The price of a Mitsubishi Xpander has been eased by VND15 million, while Toyota Vios, which is a bestseller, has become VND25 million cheaper.
The prices of import models have also decreased. Subaru has slashed the selling prices of Forester. This is the first time the C-class SUV of Subaru has fallen to below VND900 million. The three Forester versions now have preferential prices of VND899 million, VND1.029 billion and VND1.179 billion.
BMW models have had sharp price cuts: VND800 million for X7, VND20 million for X5, VND160 million for X4, VND330 million for X3 and VND310 million for X2.
The prices of old versions of X6 and X1 have also been slashed to clear stock. The new model with notable discount is the 5-Series with a VND200 million cut for the 520i version.
In the more affordable segment, Suzuki’s models from old to newly launched, including Ertiga, XL7 and Ciaz, all have seen prices decrease.The sharpest decrease of VND42 million is offered to Ergita.
In order to clear inventories in the end-of-year sale season, car dealers are rushing to slash the prices of 2019 models. The last Mitsubishi Pajero Sport G 4x2 AT Premium 2019 are offered at the price discount of up to VND200 million, while Kia Sorento 2019 by VND100-130 million, and Ford Ranger 2019, called ‘pick-up King’ by VND100 million.
Phan Hoang from a Nissan sales agent in Hanoi said the price cuts are in all segments, from low to high-end models. In the past, price discounts were offered only to models with poor sales. But now, famous brands and bestsellers also have seen price decreases.
Vinh Nam, a car expert, thinks the market will not see a high growth rate this year as seen in previous years because of Covid-19. However, the decreases will be 15-20 percent only.
More people could afford imported cars from the EU when the EU-Vietnam Free Trade Agreement (EVFTA) takes effect from August 1.
Car prices in Vietnam are predicted to continue falling with many discount programmes due to large inventory and slow sales.