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Car sales remain lackluster despite heavy discounts
By Le Hoang
Thursday,  Jan 9, 2020,13:20 (GMT+7)

Car sales remain lackluster despite heavy discounts

By Le Hoang

Cars made by Toyota Vietnam are put on display. Automobile sales remain lackluster though automakers and dealerships are offering generous discounts – PHOTO: TMV

HCMC – Scores of automobile firms and dealerships have been running promotional programs with steep discounts, but their sales have been poor over the past two months, which is unusual for this time of year.

Having already introduced various promotional and customer support programs in the past year, Toyota Vietnam and its dealerships are now embarking on another program from January 3 to 31.

Customers who purchase Corolla Altis, Innova or Fortuner cars will have part of their registration fees subsidized, have their vehicle hulls insured for one year and receive a free service form.

The move by the Japanese automaker is expected to bring in customers on the occasion of the year-end sales season as the number of domestically assembled and imported vehicles has grown versus previous years, according to observers.

Another Japanese brand, Mazda, is giving local car buyers substantial discounts on several models to compete with its rivals.

For example, every buyer of the seven-seater Mazda CX-8 will receive a discount of up to VND100 million (US$4,300), together with a high-end kit. Meanwhile, a Mazda CX-8 2.5L Deluxe car is being sold at VND1.099 billion (US$47,500), down VND50 million compared with its listed price.

Vietnamese automaker Truong Hai Auto Corporation, or Thaco, is also offering a preferential package of up to VND70 million (US$3,000) for Mazda2 subcompact cars.

The sum includes VND30-40 million worth of direct discounts, a high-end kit worth VND10 million and a free maintenance package for either three years of use or 50,000 kilometers traveled.

A similar package worth VND61 million is being applied to its Mazda6 as well.

Buyers of the mid-size sport utility vehicle (SUV) Nissan Terra are now entitled to discounts worth VND100 million each from Japanese manufacturer Nissan.

Another Japanese car maker, Mitsubishi Motor, is offering incentives worth as much as VND100 million for the compact crossover SUV Outlander and VND95 million for the mid-size SUV Pajero Sport.

German automaker Volkswagen is waiving its registration fees, at more than VND200 million, for its Tiguan Allspace model, which boasts a longer wheelbase and room for seven people.

Locals can also take advantage of the special offers from German luxury car manufacturer BMW, with price reductions of VND75 million to VND300 million for a variety of car models, including the BMW 3 Series (F30).

Dealerships of Japanese automaker Honda are reducing the prices of the five-seater SUV model, Honda HR-V 1.8G, by VND90 million to VND691 million and of the seven-seater Honda CR-V, a type of compact crossover SUV, by VND15-20 million. Buyers are also being given kits worth VND20-30 million.

Industry insiders stated that these discounts are unusual. In previous years, the demand for cars around Tet was strong enough to cause prices to rise.

They added that buyers who expected their vehicles to be delivered before the holiday were willing to pay dealerships a surcharge.

Data from the General Department of Vietnam Customs revealed that the number of imported completely-built-up (CBU) cars in December last year dropped to some 8,000 units for a combined value of some US$140 million.

In November, CBU cars also suffered a decline, at more than VND11,700 cars worth US$267 million, versus the previous month.

In 2019, Vietnam imported some 142,000 CBU cars worth US$3.1 billion, up 71% in number and 69.4% in value compared with 2018, thanks to the lifting of policy barriers.

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