Despite attractive discounts and promotions, car sales in the first eight months of the year dipped 6 percent year-on-year to 177,000 units. (Photo: Volkswagen) Hanoi (VNA) – Although many carmakers in Vietnam have applieddiscounts and promotions, car sales in the first eight months of the yeardipped 6 percent year-on-year to 177,000 units, according to the VietnamAutomobile Manufacturers’ Association (VAMA).
Many automakers launched promotions to trigger sales in August. Honda Vietnamcut the prices of its Civic, Accord and CR-V models by nearly 200 million VND(8,800 USD). Thaco slashed tens of millions of VND off best sellers like KiaMorning and Cerato. Meanwhile, Huyndai Thanh Cong offered discounts of 40-70million VND (1,760- 3,080 USD).
However, sales of tourist, commercialand specialised cars experienced respective year-on-year declines of 4 percent,7 percent and 12 percent.
The VAMA once forecast its car sales would grow 10 percent in 2017; however,the sluggish automobile market makes it unlikely this goal will be hit.
Slow sales during August-September, or lunar July, which is known as Thang Cohon (Month of lonely spirits) also contributed to the slow sales, as peopletraditionally keep purchases to a minimum during the unlucky period.
Additionally, consumersare awaiting further reductions in automobile prices as tariffs on completely-built-up(CBU) cars imported from ASEAN nations will fall to zero under the ASEAN FreeTrade Agreement which will take effect at the beginning of 2018.
By the end of August, imports of CBU vehicles fell 5 percent to 65,490 units. Thailandremained the largest automobile exporter to Vietnam with 23,840 units, followedby Indonesia with 15,540 units and the Republic of Korea with 5,980 units.
Car sellers attributed the decline in CBU vehicles to the country’s unstableautomobile market.
Automobile producers expect big sales at the outset of 2018, also lunarNovember, as Vietnamese customers tend to spend a lot during end-of-the-yearshopping season.-VNA
VNA
