Local car market reacts to end of fee reduction policy

A  showroom of Honda Vietnam located in Tây Hồ District, Hà Nội. — Photo courtesy of the company

HÀ NỘI — The domestic automobile market has experienced mixed results after the expiration of the 50 per cent registration fee reduction policy on January 1, 2024.

The end of this policy has impacted both domestically assembled vehicles and imported cars, according to industry insiders.

Several car companies have responded to the changing market conditions by implementing various strategies to stimulate sales.

Toyota Vietnam, for example, has reduced the prices of car models such as Raize, Yaris Cross, and Fortuner. The discounts range from VNĐ54 million (US$2,280) for Raize to VNĐ128 million ($5,546) for Fortuner Legender. Even the recently introduced Yaris Cross received a discount of up to VNĐ80 million.

Toyota Vietnam has launched a program that supports 50 per cent of the registration fees for customers purchasing Vios cars, along with reduced interest rates and an extended warranty for other models.

Honda Vietnam (HNV) has also introduced promotional programs for its car products. Honda City offers a 100 per cent discount on registration fees and one year of body insurance for versions L and G, while Honda City RS provides a 50 per cent discount on registration fees and one year of body insurance. Other models such as HR-V, Civic, and Accord receive a 50 per cent discount on registration fees.

Subaru Vietnam, as an importer, has implemented incentive programmes in the form of cash discounts and prizes. Customers purchasing Subaru Forester, Outback, and BRZ can receive cash discounts ranging from VNĐ170 million to VNĐ410 million, depending on the model. Additionally, customers have a chance to win SJC gold.

Meanwhile, Ford Vietnam offers a 50 per cent discount on registration fees for Territory, Ranger, and Everest cars, along with a VNĐ100 million discount for Ford Explorer. The 16-seat Ford Transit commercial vehicle line receives a discount of VNĐ30 million.

Luxury car brands such as Mercedes-Benz Vietnam have also responded to the market situation. It announced a 50 per cent registration fee support for assembled and imported car models, along with car insurance. Discounts are applied to the Mercedes-Benz C-Class and E-Class models, as well as the V-Class.

In contrast to the trend of price reductions, some companies, such as Hyundai Thanh Cong and Thaco, have increased the prices of certain car models. Hyundai Thanh Cong Vietnam and Thaco have increased the prices of Hyundai and Mazda models, respectively, citing changes in the global economy and the cost of vehicle production components as reasons for the adjustments. VinFast has also announced a price increase for the VF 5 Plus model, specifically for both rental and battery purchases.

The price adjustments have led to concerns among consumers such as Nguyễn Tuấn Minh, who had previously planned to buy a Hyundai Tucson at a lower price but now needs to reconsider due to the increased price. The price changes and economic instability may affect consumers’ purchasing decisions and potentially reduce their purchasing power, posing challenges for the automotive market in the near future.

In response to the increased competition and price challenges, marketing strategies and customer incentives are expected to play a crucial role in attracting buyers, particularly in the discount car segment. — VNS