VietNamNet
Bridge – Consumers have never before
witnessed so many automobile sales promotion campaigns like these days. Sharp
price reductions of 30-100 million dong have been offered to car buyers.
Sharp price falls cannot stimulate demand
In
early April 2012, Honda Vietnam announced the decision to “give presents” of
40-55 million dong to the clients who buy Honda Civic in April and the first
half of May.
Also in
early April 2012, GM Vietnam launched an impressive sale promotion campaign,
offering free maintenance, periodic inspection, repair and part replacement to
the clients who buy from the three new models – Orlando, Captiva and Spark from
April 10. The program would last two years.
Besides,
GM Vietnam also props up 100 percent of the insurance premium for material
damages within two years, and partially props up the ownership registration
tax.
Ford
Vietnam in April also decided to offer price discounts for definite time for
some models available on the market. The sharpest price discount is 86 million
dong per car.
Truong
Hai, the Vietnamese automobile manufacturer, continues stimulating the demand
for MPV sports car KIA Sorento, assembled domestically, by offering some
benefits worth 100 million dong.
VinaMazda
has also announced the impressive sale promotion campaign, offering the price
discounts of 35-80 million dong.
Car
importers also have to slash the sale prices. The luxurious sedan Pluence
model, which has the manufacturer’s suggested retail price at 1,046,000 million
dong, now can be bought at 920 million dong.
Car
sale promotion campaigns nowadays do not catch the special attention from the
public like they did in the past. Too many promotion campaigns have been run
since the beginning of the year, since the demand has fallen dramatically due
to the high inflation and the new cars.
Right
after the ownership registration tax was raised in Hanoi and HCM City, both
domestic automobile manufacturers and importers launched sale promotion
programs to lure more buyers, since they understood that the higher tax would
lead to slower sale.
Mercedes
Benz, for example, propped up 3 percent of the ownership registration tax. BMW
Euro Auto subsidies up to 200 million dong, while Renault shoulders 30 percent
of the total ownership registration tax.
Car
dealers say slashing sale prices is the solution in the last resort. Offering
price discounts would lead them to taking loss. However, they have no other
choice for now, when they need to clear the stocks, get capital for business
and maintain production.
The
report by the Vietnam Automobile Manufacturers’ Association (VAMA) showed that
17,981 cars were sold in the first quarter of 2012, a sharp decrease of 37
percent in comparison with the same period of the last year.
Manufacturers stop production
Ford
Vietnam halted the production for two weeks due to the high inventory volume.
GM has also suspended the production. Meanwhile, Truong Hai has cut down 50
percent of the capacity of the factory assembling passenger cars due to the
sharp demand fall.
Ford
Vietnam and GM Vietnam reportedly have the inventory volumes up to 1000 cars.
Therefore, they have to offer big price discounts. In the past, the highest
price discount was 30 million dong per car, while 30 million dong is now the
lowest price discount.
General
Director of Truong Hai Automobile Corporation Tran Ba Duong said that it is now
the most difficult period for automobile manufacturers which has forced them to
make every effort to boost sales.
Though
no official April car sale figure has been released, one can see that the sales
were modest. “The consumer price index CPI increased only by 0.05 percent in
April, which shows that people even do not have money to buy essential goods,
let alone luxurious products like cars,” Duong said.
Tran
Thuy
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