Exciting car market at year-end

On December 4, the car industry saw an even greater increase as some auto shops in Ho Chi Minh City were quite bustling, different from the previous quiet period because of the impact of the Covid-19 epidemic.


Exciting car market at year-end ảnh 1 Buyers at an auto shop
Most auto shops in streets Tran Hung Dao in District 1, Nguyen Van Troi in District Phu Nhuan, Cong Hoa in District Tan Binh, Nguyen Oanh, and Nguyen Kiem in District Go Vap were quite crowded with customers.

According to a sales consultant at a Kia store in District Phu Nhuan, compared to October and November, the store has seen an increase in shoppers by around 30 percent.

However, compared to this time last year, the number of customers coming to buy cars still decreased. Due to the 50 percent reduction in registration fee lasting up to six months, many customers expected more discounts.

Not to mention, the prolonged Covid-19 epidemic makes customers hesitate when buying a car. However, other customers foresaw the registration fee reduction as well as the year-end discount program, so they came to deposit to buy a car.

At the Peugeot car store on Truong Chinh Street in Tan Binh District, Tran Xuan Thiem in District 12 walked around looking at shiny and luxurious cars.

“My wife and I are doing real estate business, driving an old car for nearly six years. Although this year the Covid-19 epidemic occurred, we have been facing difficulties in doing business, but we had intended to buy a new car. Therefore, when we heard that the car registration fee was reduced by 50 percent, equivalent to more than VND60 million, we decided to buy it, both saving money and having a new car to go to work," said Thiem.

Similarly, Mr. Tran Van Minh and Mr. Nguyen Van Sang cooperated in agriculture investment in different localities far from the center of Ho Chi Minh City.

Therefore, it is not safe to ride an old car, so they decided to buy two Ford pickups priced at VND700 million each. According to the latest regulation, buyers of pickup trucks just pay 6 percent of the registration fee; so they can save more than VND40 million, Mr. Sang said.

According to experts in the industry as well as analysis data from the Vietnam Automobile Manufacturers Association (VAMA), a 50 percent reduction in registration fees and a discount on car prices by dealers to stimulate consumer demand and to clear out their inventory of “last year's model”, foreseeable auto sales will certainly hike in the peak shopping season before the Lunar New Year.

According to VAMA's ffigure recently, VAMA’s 17 member units have sold 29,797 vehicles in October, an increase of 120 percent compared to the previous month. Of 29,797 vehicles, approximately 19,865 passenger cars, 9,492 commercial vehicles and 404 specialized vehicles have been sold, up by 138 percent, by 94 percent, and 45 percent respectively compared to the previous month.

“Currently, many customers who ordered a car to receive the registration fee in November and December have not received their cars yet. Possibly, they are afraid of overcrowding on the first day when people were rushing to pay fees at tax offices. Therefore, it is absolute to assume that, from now until the Lunar New Year, the sales growth of car manufacturers will continue to increase sharply, because customers are receiving dual incentives with many options including car types and prices, said automotive expert Huynh Le Nguyen.