October 09, 2017 | 19:32 (GMT+7)
Bumpy time for automobile market, smooth sale for used cars
Automobile traders are suffering tough times due to a slide in prices and sales, though the used-car market has been vibrant even during the seventh lunar month called Thang Co hon (Month of lonely spirits), more than 30 units sold per day.
Despite promotions and discounts, new car sales in the first eight months of the year dipped six percent year-on-year to 177,000 units, according to the Vietnam Automobile Manufacturers’ Association.
Second-hand cars, from low-cost like Kia Mornings and Huyndai Grand i10s to pricey Land Rovers, Lexuses and Audis, have been for sale at showrooms on Duong Dinh Nghe, Nguyen Chanh, Pham Hung, Le Van Luong and Nguyen Van Cu streets in Hanoi.
Used car traders also slashed prices in the context of lower import prices for completely-built-up (CBU) cars. Whilst automakers like Honda, Thaco and Huyndai slashed millions of VND off their best sellers, used car dealers cut 10-15 percent from their products.
Although the ASEAN Free Trade Agreement taking effect at the beginning of 2018 will benefit automakers as tariffs on CBU cars imported from ASEAN nations will fall to zero, second-hand car traders are not worried. They said the Government still uses measures to limit vehicle sales and increases in taxes on new cars remain a possibility.
Source: VNA