After the 50% registration fee discount ends, the car market near Tet has mixed developments.

Specifically, domestically assembled cars are no longer entitled to a 50% reduction in registration fees under the incentive program in Decree 41/2023/ND-CP of the Prime Minister issued on June 28, 2023, regulating registration fees for domestically manufactured and assembled cars.

Therefore, not only auto assemblers but also auto importers are taking advantage of the peak shopping season of the year to come up with flexible business strategies, from price reductions, promotions to interest rate and insurance support.

According to records in the first days of 2024, many car companies have proactively reduced listed prices, increased promotions, lucky draws, loan interest support, insurance gifts, and accessories to stimulate sales. Car models on the list of cars with strong price reductions in early 2024 are diverse, from popular models to luxury cars.

Toyota Vietnam is a pioneer in reducing car prices. To welcome the new year 2024, Toyota Vietnam reduced the selling price of 3 models Raize, Yaris Cross and Fortuner, the lowest reduction from 54 million VND for Raize and the highest up to 128 million VND for Fortuner Legender. Even the "newbie" Yaris Cross, which has just entered the market, has been discounted by this company up to 80 million VND.

Not stopping there, Toyota Vietnam continues to launch a program to support 50% of registration fees for customers buying Vios cars with a reduction of 24 - 30 million VND; at the same time, support preferential interest rates of 0%/year and extend the warranty for Veloz Cross and Avanza Premio in January 2024.

Not staying out of the game, Honda Vietnam also announced a preferential program in January 2024 for all of its car products. Accordingly, Honda City is entitled to a 100% discount on registration fees and 1 year of body insurance, applicable to L and G versions. Honda City RS is entitled to a 50% discount on registration fees and 1 year of body insurance.

Other models such as HR-V, Civic, Accord also receive a 50% discount on registration fees. With this discount, customers who buy Honda HR-V, Civic will save from 36 - 43 million VND and up to 66 million VND when buying Accord.

Even though Subaru Vietnam is a car manufacturer that imports and distributes complete cars, it also offers a cash incentive program of 170 - 410 million VND. Specifically, customers who buy Subaru Forester will receive a cash discount of 170 - 250 million VND, depending on the version; Subaru Outback will receive a discount of 312 million VND; Subaru BRZ will receive a discount of up to 410 million VND. In addition, customers who buy a car will also receive a lucky draw code with a chance to win from 1 tael to 1 SJC gold bar.

Similarly, from January 10 to January 31, Ford Vietnam offers a 50% discount on registration fees for customers buying Territory, Ranger, and Everest. Ford Explorer is offered a discount of VND100 million. The 16-seat Ford Transit commercial vehicle also receives a discount of VND30 million during this period.

In particular, for luxury cars, Mercedes-Benz Vietnam on January 2 also announced support of 50% of registration fees for assembled and imported cars and free insurance for cars until February 29. Specifically, in the first 2 months of 2024, customers who buy Mercedes-Benz C-Class cars at prices ranging from 1.599 - 2.099 billion VND, E-Class cars from 2.159 - 3.209 billion VND, V-Class cars and complete payment procedures will receive a discount corresponding to 50% of the registration fee. With these prices, customers will receive a discount of 80 - 192 million VND, depending on the car model, version and locality applying a fee of 10 or 12% of the registration fee.

While companies are competing to reduce prices and promote sales to stimulate demand, many companies are suddenly increasing car prices. For example, Hyundai Thanh Cong has officially increased the prices of two models Hyundai Tucson and Hyundai Santa Fe by 30 - 90 million VND. Specifically, Hyundai Santa Fe increased by 60 - 70 million VND, raising the new selling price to 1.029 - 1.369 billion VND; Hyundai Tucson increased by 30 - 90 million VND, with new prices from 799 million VND to 959 million VND, depending on the version.

Similarly, Thaco also increased the selling price of 3 models, Mazda2, CX-3 and CX-30, by 10 million VND. At the same time, it increased the selling price of 3 versions of Peugeot 408 by 20 million VND, raising the selling price of Peugeot 408 Allure, Premium and GT versions to 1.019 billion VND, 1.119 billion VND and 1.269 billion VND respectively.

Previously, VinFast also announced that from January 1, 2024, the price of the VF 5 Plus model will increase by 10 million VND for both battery rental and purchase. Thus, the starting price of VinFast VF 5 Plus is from 468 million VND excluding battery and 548 million VND with battery.

Meeting customer Nguyen Tuan Minh in Hoang Mai district, Hanoi at Hyundai Giai Phong, he expressed regret: “Previously, I intended to buy a Hyundai Tucson diesel car when the price was reduced by 191 million VND, down to 869 million VND, but due to a sudden business trip and now coming back to buy a car, that opportunity is no longer there. Currently, the car price has increased by 90 million VND, bringing the selling price of this version to 959 million VND, making me reconsider.”

With the above price increase, Hyundai Thanh Cong Vietnam explained that the end of 2023 recorded many fluctuations in the global economy, leading to changes in supply as well as costs of vehicle manufacturing components, affecting the price of finished products, forcing the company to adjust the selling price accordingly.

According to Mr. Nguyen Tuan, Director of Thien Phuc An Company - an imported car business unit, competition between car manufacturers will become more fierce, especially in the discounted car segment. Marketing strategies and customer incentives will play an important role in attracting buyers.

However, the fact that many companies are increasing prices can create a lot of pressure on consumers. The price change can affect their decision to buy a car and buyers will consider keeping their old car instead of buying a new one. In particular, the price challenges and the unstable economic situation can reduce the purchasing power of consumers, causing difficulties and challenges for the automobile market in the coming time.