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Chinese cars are sold at too low a price and are criticized for their quality. But if they are sold at the same price or more expensive than Japanese, Korean, American brands, no one will buy them.
Too cheap to be criticized
Information from MG car dealer said that the MG7 2024 model, belonging to the D-class sedan segment, is about to be launched in the Vietnamese market. The expected selling price is more than 700 million VND. In Vietnam, MG 7 will compete with rivals such as: Toyota Camry, Kia K5, Mazda6 and Honda Accord.
This sedan has 2 versions, using a turbocharged gasoline engine, equipped with a smart cockpit system, advanced smart driving support, and a 9-speaker BOSE Premium sound system. With an expected selling price of more than 700 million VND, it is the lowest price in the segment.
MG is an automobile brand owned by Shanghai Automotive Industry Corporation, China (SAIC). This car company entered Vietnam in 2020, and to date MG cars have covered all segments such as B-class and C-class SUVs; B-class and C-class sedans; and soon D-class sedans... The selling price of MG models is often the lowest in the segment, even lower than cars in the lower segment.
For example, the New MG 5 model belongs to the C-class sedan segment but has a selling price of 399-499 million VND, equivalent to a car in the A-class segment. Or the MG HS model, currently has a selling price of 629-679 million VND, equivalent to the price of B-class SUV models such as: Hyundai Creta, Kia Setos...
Although it has the cheapest price in the segment, even "lowering" from the C-class car segment to compete with A and B-class cars, sales are not high. With a flashy appearance, equipped with a lot of technology, while the price is cheap, it makes Vietnamese consumers even more hesitant. Vietnamese consumers often say: "cheap is bad", with Chinese cars having cheap prices, it means poor quality, quickly deteriorating. Not only that, these car models have been released not long ago but have been hastily discounted, the cheaper the more unsold. Many Vietnamese consumers said that they are willing to buy used cars of Japanese or Korean brands with peace of mind than buying new cheap cars from China.
Too expensive, no one buys
On the contrary, recently, some Chinese car brands have entered Vietnam with very high selling prices, the highest in the segment, higher than Japanese and Korean cars. A typical example is the Lynk & Co brand. This is a brand belonging to the Geely automobile group.
Lynk & Co entered the Vietnamese market with 3 high-chassis models, including 01, 05 and 09. Of which, Lynk & Co 01 belongs to the C-class SUV, priced at 999 million VND; Lynk & Co 05 belongs to the C-class SUV-Coupe segment with a selling price of 1.6 billion VND and Lynk & Co 09 belongs to the D-class SUV segment, priced at 2.2 billion VND.
Lynk & Co 01 is grouped with familiar names such as Mazda CX-5, Ford Territory or Kia Sportage but has a higher selling price than these models. Lynk & Co 09 is "in the same group" as Ford Explorer, Hyundai Palisade or Volkswagen Teramont. This model has a lower selling price than Ford Explorer and Volkswagen Teramont but is much higher than Hyundai Palisade, starting from only 1.469 billion VND.
When asking some customers whether they are willing to spend billions to buy Chinese cars, they all shake their heads, even saying directly: "don't want to be a guinea pig". Even though these Chinese car models have beautiful exterior designs, interiors that flatter users with a series of modern technologies and use environmentally friendly engines. But Chinese brands with expensive prices are even harder to convince Vietnamese consumers.
Meanwhile, with 1 billion VND, it is possible to choose to buy a C-class SUV from Japanese, Korean and American brands. With 2.2 billion VND, you can buy luxury cars such as BMW, Audi... world-class luxury car brands.
Selling cheap is criticized, but selling at the same price or more expensive than Japanese, Korean, American brands... consumers do not choose Chinese cars.
There have been Chinese car brands that initially entered Vietnam with high prices but then had to quickly reduce prices. Haval H6 HEV belongs to the C-class SUV segment, launched in the Vietnamese market in early August 2023, with a listed price of 1.096 billion VND. The high price could not sell, so it has continuously reduced the price to only 850 million VND, but this has made consumers lose confidence even more.
Up to now, all Chinese car brands do not announce monthly or annual sales figures. Meanwhile, Japanese, Korean, American car companies… still announce them regularly. Asking Chinese car dealers and businesses, they are never provided with specific sales figures. Is it because sales are so poor that they hide them and do not dare to be transparent?
HA (according to Vietnamnet)