Automakers predict sluggish market

The domestic automobile market is predicted by the Viet Nam Automobile Manufacturers’ Association (VAMA) to be sluggish for the remainder of the year.

“In previous years, sales often increased at the end of each year,” said Nguyen Trung Hieu, an official from VAMA. “At that time, customers often had to stand in a queue and wait for months to buy a car. This year, however, not many people want to spend the money to buy a car.”

General Director of website www.muabanoto.vn Nguyen Thanh Binh predicted automobile sales to decline by 20 per cent.

Hieu said customers had been treated “like gods” by automobile companies and dealerships that are offering several promotional programmes.

“Some give presents to the buyers. Some cut down the price,” Hieu said.

A representative from Toyota Dong Sai Gon dealership in HCM City said the Innova’s price was reduced by VND25 million (US$1,300) to lure potential customers.

Meanwhile, an agent from Ford Viet Nam in District 3 provides customers with accessories if they purchase a Ford Everest.

Last year, his company had a waiting list to purchase their products, which is not the case this year.

Governmental policies aimed at reducing imports has been cited as the main reason that has caused sluggish sales this year.

“Last year, the value added tax and registration fees were 50 per cent lower thanks to the Government’s stimulate package,” Hieu said.

According to Binh, interest rates are the main reason behind the dismal sales.

“Recently, interest rates are so high, so less people want to buy cars,” said Binh.

According to VAMA, 9,141 automobiles were purchased last month, a year-on-year decrease of 17 per cent.

Meanwhile, 4,000 automobiles were imported in September. During the first nine months of the year, 36,000 units were imported, a 25-per-cent decrease over the same period last year.