The Vietnamese automobile market was quiet in 2023 and the first months of 2024, forcing manufacturers and car dealers to slash selling prices to attract customers.

While continuing to launch new models, auto manufacturers have started sale promotion programs to clear stock, which are models marketed in 2022 and 2023 (VIN 2022, VIN 2023). The discounts are up to hundreds of million of dong. 

In early March 2024, Mercedes-Benz Vietnam announced the sale of models manufactured in 2022 (VIN 2022), including C-Class, E-Class, GLB, GLE and some AMG high-performance series. 

The real prices for C-Class are lower by VND210-260 million, E-Class VND270-320 million, GLE 450 by VND669 million and GLB 200 AMG VND430 million than the quoted prices. 

The sharpest price cut, VND719 million, was reported for Mercedes-AMG GT53 C-Class, E-Class, GLB and GLE. Their current real price is VND5.999 billion.

In fact, the selling prices offered by car dealers are even lower than the adjusted prices. A sales agent in Hanoi is offering Mercedes-Benz C200 Avantgarde Plus, white color, at VND1.489 billion, or VND99 million lower than the adjusted price (VND1.588 billion).

N, a salesman of a Mercedes Benz sales agent in district 7, HCMC revealed that he negotiated with the agent to offer better prices than announced and obtain spare parts such as heat insulation film, floor lining and dash cam. 

Some dealers told VietNamNet that they were willing to slash prices for some car models.

According to Mercedes Benz, the number of cars manufactured in 2022 and subject to price discounts is limited. However, on online car sale platforms, buyers can see that the models subject to car price cuts have many different colors. 

For example, there are still three colors (white, black, red) for Mercedes Benz C200 Avantgrade VIN 2022, priced at VND1.388 billion, for buyers’ choice. A salesman revealed that the inventory remains high.

According to N, some luxury models, including C200 and E180 series, attract customers, while other models are struggling to find customers.

“Most of the clients who own cars priced at over VND3 billion are wealthy and they don’t intend to use old models despite price cuts,” N explained.

The rival

Over many years Mercedes Benz Vietnam just raised selling prices and nearly never cut prices. In May 2020, Mercedes C-Class price hovered around VND1.499-1.897 billion, while GLC VND1.989-2.228 billion.

In April 2024, Mercedes Benz quoted prices are higher. C-Class (next-generation, W206) is selling at VND1.599-2.099 billion, or VND100-202 million higher than that in 2020. Meanwhile, next-generation GLC series are priced at VND2.299-2.799 billion, or VND571-600 million higher than old-generation GLC (marketed in 2020).

Meanwhile, BMW, the direct rival of Mercedes, tends to slash its prices. In November 2019, for example, BMW 3-Seris, which was in the same market segment with Mercedes C-Class, was priced at VND1.689 billion. But in April 2024, the models are selling at VND1.499-1.809 billion, which are VND100-290 million lower than Mercedes C-Class.

BMW X3, the direct rival of Mercedes GLC, was priced at VND1.999 billion in November 2019, but at present, they are selling at VND1.789-2.375 billion. The prices are VND424-510 million lower than Mercedes GLC versions.

Previously, BMW models were expensive because they were CBU (complete built unit) imports and the prices went down quickly after launching, so they seemed to be inferior to Mercedes Benz products which were distributed professionally.

The ‘three-pointed star’ car products were once the best selling luxury brand in Vietnam, partially because they were assembled in Vietnam and did not bear import tax.

However, Mercedes Benz now can feel competition pressure from its rival – BMW. Since December 2022, THACO has been assembling BMW models in Vietnam, namely 3-Series, 5-Series, X3 and X5 at its factory in Chu Lai. The car models have become more attractive as they are cheaper than Mercedes’ products in the same segment.

Q., who owns a luxury car, said Mercedes VIN 2022 is not attractive now, because its buyers no longer can enjoy the 50 percent vehicle registration tax cut this year. Though manufacturers have slashed VIN 2022 car prices, buyers have to pay more than in 2023 because they have to pay 100 percent of registration tax.

Hoang Hiep