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By the end of the year, car prices will continue to fall

Vantai24h - On September 4, 2017, electronic newspaper Infornet quoted from economic expert Ngo Tri Long, until the end of this year, car prices will continue to decline if the purchasing power has not increased.

Over the past months, the Vietnamese market has never seen a race to reduce car prices as deep and long as this year. All of the brands have performed deeper and deeper cuts in order to stimulate the market, gain market share, and make way for new models.


According to analysis from economist Ngo Tri Long, prices are reduced by the law of supply and demand. Car discounts increase demand and stimulate market growth. But can see, car prices fell from the beginning of the year, but the purchasing power from the market is still down compared to last year. Consumption decreases when price decreases that is a paradox.

Although businesses in Vietnam such as Truong Hai, Toyota, Honda, Nissan and Mitsubishi have reduced the price of their cars to hundreds of millions of dong but the car market experienced a dismal year. more when the sales decline. According to a report from the Vietnam Association of Automobile Manufacturers (VAMA), the turnover of these companies is about 177,038 vehicles, down 6% compared to the same period last year. In total, the total number of passenger cars sold was 107,000 units, down 4%.

The reason for the decrease in car prices is that the import tax on cars in the intra-ASEAN zone will be 0% by 2018. Therefore, car manufacturers are forced to reduce prices to be competitive and avoid losses. High-priced cars will fall sharply and cheaper cars will be cheaper.

Remember that only a few months ago, representatives of a production and distribution unit said that prices in Vietnam market can hardly reduce further because prices have fallen to the bottom. But not long after, car prices continue to fall and even fall deeper. According to Ngo Tri Long, "businesses are not going to cut prices anymore, but they can not decide for themselves because the prices are down because of market decisions."

The market has just spent the seventh lunar month with most of the downturn for many models but if the purchasing power does not increase from now until the end of the year, the car prices continue to fall lower because many car brands continue to want The market will gain market share and pave the way for new models to be competitive when taxes are zero.

At the moment, cars like the Ford Focus are actually priced at VND 125-160 million lower than the listed price. Toyota continues to reduce prices for Vios, Yaris, Innova and Camry models with a reduction of over 100 million for the Camry sedan.

In early October, another crossover crossover model Hyundai Tucson had a listing price of VND815 million falling to less than VND770 million. At many agents, customers can negotiate to the lowest price of 761 million. This is considered to be the best price in the current segment.

infonet.vn

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