Car series reduced prices by hundreds of millions of dong in May

Slow purchasing power, sluggish market, especially companies need to boost sales and consumption of car models produced in 2023 to prepare for the launch of new models in 2024, forcing companies and dealers to deeply discount to "push goods".

Car companies compete to reduce prices

After a series of car models from many manufacturers were discounted since the beginning of May, it is the turn of Honda Vietnam (HVN)'s CR-V, City, HR-V, Accord and Civic models to enjoy 50-100% preferential registration fees (according to the 10% registration fee frame), cash discounts or 1 year free body insurance.

Specifically, for the Honda CR-V line, the incentive is applied to Honda CR-V G and L versions, manufactured in 2023 (VIN 2023). HVN will give customers 100% of the registration fee, equivalent to 111-116 million VND.

In addition, the G version is supported with an additional 30 million VND, bringing the total incentive to 141 million VND. Meanwhile, the L version is given an additional 1 year of body insurance.

This policy applies to customers who purchase cars from May 6 to May 31.

Also participating in the price reduction to stimulate sales is the Toyota Vios, which will be on sale in May 2024. Due to the difficulty in competing, the company continues to have to deeply discount this car line.

Accordingly, the new Toyota Vios has reduced the listed price by nearly 50 million VND, and customers who buy the car will also receive incentives of 30-50 million VND, including cash and installation of accessories and accompanying insurance. Thus, customers who buy a Toyota Vios car this May will receive a discount of 50-100 million VND.

From May 6, Hyundai reduced the price of some models such as: Santa Fe reduced by another 50 million VND, paving the way for the new generation about to launch. Along with that, Accent VIN 2023 was reduced by dealers from 542 million VND to 475 million VND. Custin was reduced from 60-80 million VND for the two versions 1.5T Special and 2.0T Premium, with insurance gifts or accessories depending on the place of sale.

Notably, after the Stargazer X was launched, some dealers reduced the price of the old Stargazer in stock, down to only about 589 million VND, meaning this is currently the cheapest multi-purpose vehicle (MPV) in Vietnam. To boost sales, Hyundai is also implementing a series of customer care events Hyundai Care Day 2024 in major cities nationwide, lasting from now until August 4 (taking place in Ha Long, Quang Ninh).

Subaru is currently offering a huge discount on all 2023 Forester VIN versions. Of which, the 2.0 iS EyeSight version has the biggest discount, up to 250 million VND, with a 5-year warranty (unlimited mileage).

Next is the 2.0 iL EyeSight, which is discounted by 210 million VND, with a free auto-folding mirror accessory package and a 5-year warranty (unlimited km). Finally, the 2.0 iL version is discounted by 120 million VND, with a 5-year warranty package (unlimited km).

In May, the Mitsubishi Xpander MT and AT versions received a 100% discount on registration fees, equivalent to 56 million and 60 million VND, with new prices of 504 million and 538 million VND. The Xpander MT model has an additional gift of a rear camera (2.5 million VND), while the AT version comes with a one-year physical insurance (7.7 million VND).

The Xpander AT Premium version comes with a fuel voucher worth 25 million VND and a 360-degree camera (20 million VND).

Meanwhile, the SUV-style variant Xpander Cross has a 30 million VND fuel voucher and a 360-degree camera.

Purchasing power decreased, inventory increased

A report on May 10 by the Vietnam Automobile Manufacturers Association (VAMA) showed that sales of the entire market in April 2024 reached 24,350 vehicles, down 11% compared to March 2024, up 9% compared to April 2023.

Also according to VAMA, of the 24,350 vehicles in April, there were 17,258 passenger cars; 6,815 commercial vehicles and 277 specialized vehicles. Passenger car sales decreased by 9%; commercial vehicles decreased by 15% and specialized vehicles increased by 21% compared to the previous month.

Sales of domestically assembled cars reached 11,983 vehicles, down 17% compared to the previous month, and sales of imported cars were 12,367 vehicles, down 3% compared to the previous month.

Total sales of the entire market by the end of April 2024 decreased by 11% compared to 2023, of which passenger cars decreased by 14%; commercial vehicles decreased by 3% and specialized vehicles decreased by 28% compared to 2023. Sales of domestically assembled vehicles decreased by 17% while imported vehicles decreased by 3% compared to the same period last year.

It is estimated that the current car inventory is about 70,000 vehicles of all types, mainly cars manufactured in 2023. Therefore, at present, businesses are focusing on pushing inventory.

According to the General Statistics Office, in the first four months of 2024, the number of imported cars is estimated at 44,772 with a value of 919 million USD. Compared to the same period in 2023, this figure decreased by 17.6% in volume and 24.2% in value.

In April 2024, a total of 38,200 new cars, including domestically produced and imported cars, were added to the Vietnamese market. This figure decreased by 6% compared to March 2024 but increased by 2% compared to the same period in 2023.

Of which, the output of domestically manufactured and assembled cars is estimated at 25,700 units, up 3.6% compared to March 2024 (24,800 units) and up 5.2% compared to the same period in 2023. In the first 4 months of 2024, the output of domestically manufactured and assembled cars is estimated at 88,300 units, down 6.6% compared to the same period in 2023.

According to the General Statistics Office, the number of imported cars in April 2024 is estimated at 12,500 units, with a value of 244 million USD. Compared to the number of 15,860 units and the value of 330 million USD in March 2024, imported cars in April 2024 decreased by 21.2% in volume and 26.1% in value.

Compared to the same period in 2023, the number of imported cars in April 2024 increased by 1.6% in volume, but decreased by 15.1% in value.

This shows that the recent trend of car importers is to prioritize bringing into the country cheap car models, with an average single unit value of only 19,500 USD/car (approximately 495 million VND).

Industry experts say that car consumption in the first quarter of 2024 is still gloomy, causing imported car dealers to be cautious and limit massive imports. Currently, many car manufacturers have proactively postponed the launch of new products to the end of the second quarter of 2024.