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| Is the auto market waiting for a new stimulus policy? (Photo: PV) |
(PLVN) - In the first months of 2024, the auto market continued to witness a decline in sales, even though automakers had many stimulus programs and deep discounts.
Sales fall despite stimulus programs
According to the Vietnam Automobile Manufacturers Association (VAMA), in April 2024, the total market sales reached 24,350 vehicles, down 11% compared to March 2024 and up 9% compared to the same period in 2023. Specifically, the total market sales reached 24,350 vehicles, including 17,258 passenger cars; 6,815 commercial vehicles and 277 specialized vehicles. Sales of both domestically assembled and completely imported vehicles decreased, however, domestically assembled vehicles decreased sharply by 17% compared to the previous month, while sales of completely imported vehicles decreased slightly by 3% compared to the previous month.
In general, by the end of April 2024, total sales of the entire market decreased by 11% compared to 2023, of which passenger cars decreased by 14%; commercial vehicles decreased by 3% and specialized vehicles decreased by 28%.
According to many experts on the automobile market, this result is not too surprising because like previous years, the automobile market in the first half of the year always decreased. However, the market seems to be very difficult when the consumption volume is still decreasing sharply, despite the fact that car manufacturers have promotional programs, stimulating demand, reducing prices from tens of millions to more than hundreds of millions, depending on the type.
Typically, Honda Vietnam still maintains a special support program for CR-V and City models manufactured in 2023, with a support level of 50 - 100% of registration fees, along with cash gifts, physical insurance packages, and accessory gifts. The total value is up to 80 - 140 million VND. For the Accord model alone, car buyers will receive a cash support of 220 million VND, along with promotions from the dealer system.
Ford Vietnam has also announced a price reduction of VND23-25 million for the Territory model. Along with the retail price reduction, the company also offers a "3-year physical insurance" package, worth over VND30 million. Other Ford models maintain the same retail price, but are offered an additional 2 years of warranty. Thus, customers who buy a Ford car (except Territory) in April 2024 will enjoy a 5-year warranty, including a 3-year standard warranty and a 2-year extended warranty.
Even in the luxury car segment, manufacturers have had a shocking promotion race when Mercedes promoted a series of 2022 models with hundreds of millions of dong. BMW lines such as Series 3, Series 5, X5... are also discounted by Truong Hai in many forms, the highest being 50% of registration fees.
Market "waiting" for stimulus policy?
According to assessments, the Vietnamese automobile market is currently in a state of excess supply and a lot of inventory. That is the reason why companies take turns "launching programs to promote promotions and big discounts to "clear inventory". However, sales are still decreasing. And this market will still face difficulties in the next few months. Because consumers are waiting for new car models as well as more preferential stimulus programs from companies and policies to "save" the market.
“As always, when the market is gloomy, customers often wait for breakthrough policies to boost sales. The registration fee reduction policy has been applied many times and the most recent one ended at the end of December 2023, so it seems that consumers are expecting the Government to have a new policy,” said Mr. Nguyen Manh Tien, manager of a Hyundai showroom.
Recently, in Directive No. 12/CT-TTg of the Prime Minister on key tasks and solutions to promote socio-economic development, there has been a request again: "The Ministry of Finance urgently studies and proposes to the Government and the Prime Minister in May 2024, on extending the tax payment deadline and reducing registration fees for domestically produced and assembled cars".
Mr. Tien said that if this policy is issued, domestically manufactured and assembled cars will continue to receive 50% support for registration fees. The application time may be in the second half of 2024. Therefore, customers who intend to buy cars during this time will stop to listen and wait. Therefore, in the near future, the car market will still have no changes.
Notably, Mr. Tien said that if the fourth reduction in registration fees is approved by the Government, it will not only affect domestically assembled and produced cars. This will be a big "boost" for the market in general because when domestically produced and assembled cars have incentives, imported models will also have other incentives to compete. Not to mention, in the coming time, many car manufacturers will also have programs to launch new car models, so it is possible to expect the car market to recover.
Source: https://baophapluat.vn/thi-truong-o-to-tram-lang-post512285.html
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