Many car models are massively discounted, trying to regain purchasing power

The 2024 auto market has passed the halfway point, but the number of 2023-produced cars in stock at dealerships is still quite large. This is the reason why many car models are offered by dealerships at rock-bottom prices.

One of the discounted models is the Hyundai Creta. Accordingly, the price of the high-end Hyundai Creta in 2023 is listed at 740 million VND. By March 2024, the company has adjusted it down to 699 million VND.

Currently, some dealers are offering the high-end Hyundai Creta VIN 2023 version with its own preferential policies.

Specifically, some dealers in the Central region are selling this version for 656 million VND, a reduction of 85 million VND compared to the listed price in 2023 and a reduction of 40 million VND compared to the newly adjusted price for 2024.

Similarly, a dealer in the North is offering a 2023 Hyundai Creta for VND545 million, VND54 million lower than the listed price for the 2024 standard version (VND599 million).

The biggest and strongest price reductions are for sedans. The reason is that the boom in high-chassis cars along with the change in the tastes of Vietnamese car consumers is creating great competitive pressure on sedans because sales are on a sharp downward trend.

Specifically, the new generation of Hyundai Accent has just been introduced by TC Motor, some dealers distributing this car model also reduced the price by about 10 million VND with gift accessories to attract customers.

In mid-May, a dealership in the Central region was selling the high-end Hyundai Elantra 2.0 AT version at a sharp discount of up to 125 million VND. This version is now priced at only 604 million VND, just slightly higher than the listed price of the standard version (599 million VND).

Honda City is also discounted by Honda Vietnam (HVN) through 100% registration fee. In addition to the discount, the dealer also offers 1 year of body insurance and a valuable genuine accessory package.

With this incentive, if customers buy a Honda City model, they will receive a discount of 70 - 90 million VND depending on the model.

The biggest discount of this car company is the Honda Accord. This car line is strongly discounted by HVN up to 220 million VND for car buyers.

The current selling price for this car line is from 599 - 620 million VND depending on the model.

The imported Mitsubishi Attrage sedan model is also offered a 100% discount on registration fees and some accessories such as steering wheel covers, dash cams, and rear cameras by the company and dealers, equivalent to a discount of 50 - 60 million VND. In addition, the company also supports installment loans of up to 85% of the car's value.

The current selling price of this car line ranges from 380 - 495 million VND depending on the model.

In the C-class sedan segment, the Kia K3 has been continuously discounted by the manufacturer and distributor. After the price reduction in early May 2024, the Kia K3 has recently been further discounted by 20 million VND for the 1.6 Turbo and 2.0 AT Premium versions. The selling price of these two versions is currently only 619 - 714 million VND. The remaining versions still have the same selling price.

TC Motor has just reduced the suggested price of 4 versions of the C-class sedan - Hyundai Elantra including 1.6AT standard, 1.6 AT, 2.0AT and N-Line by 20 - 30 million VND, bringing the selling price of this model to 579 - 769 million VND.

Data from the Vietnam Automobile Manufacturers Association (VAMA) has just been updated, showing that at the end of the first 5 months of 2024, total sales reached 25,794 vehicles, including 18,235 passenger cars; 7,292 commercial vehicles and 267 specialized vehicles. In May, passenger car sales increased by 6%; commercial vehicles increased by 7% and specialized vehicles decreased by 4% compared to the previous month. Sales of domestically assembled vehicles reached 11,985 vehicles, up 0.02% compared to the previous month and sales of completely imported vehicles were 13,809 vehicles, up 12% compared to the previous month.

Sedan cars in Vietnam only reached 14,677 cars, down 23.7% or 4,542 cars compared to the same period last year. This result even made sedan cars rank behind SUVs (reaching 24,428 cars) and MPVs (reaching 16,140 cars) in terms of sales.

The trend of declining sales of sedan cars occurred in most segments. In particular, by the end of May 2024, sales of the B-class sedan segment decreased by 27.2%; C-class sedans decreased by 23.6% while D-class sedans or small-sized A-class sedans were the segments with the lowest sales volume in the automobile market. This shows that sedan cars in general are losing their position and appeal in the market.

It can be seen that as competitive pressure increases, many car models in Vietnam are being offered incentives and discounts by manufacturers and distributors to help this car line regain its appeal.

In addition, some reasons that are believed to affect the car consumption market in recent times are because the real estate market is still gloomy, the fluctuation of gold prices is too large, leading to low purchasing power even though car companies continuously launch promotions, discounts, and support registration fees.

It is forecasted that in the coming months, car purchasing power may increase due to the domestic economy showing signs of improvement, production and business gradually improving, and people's shopping needs increasing sharply at the end of the year.