Car insurance price match

Though the automobile market has become big enough for manufacturers to step up domestic production, industry policies remain unencouraging. With 300,000 cars sold in 2020, Vietnam has surpassed the Philippines to become the fourth largest automobile market in the region, according to AAF (ASEAN Automotive Federation). Thailand led the region with 792,146 cars sold in 2020, while Indonesia was in the second position with 600,000 cars sold. The third position belonged to Malaysia with 550,000 cars. The figures were 296,634 for Vietnam and 223,793 for the Philippines. The AAF report was prepared based on figures from the Vietnam Automobile Manufacturer Association (VAMA). It did not count Hyundai and VinFast cars sold in Vietnam. If the cars of the two brands are counted, the figure would be over 400,000 products. The Covid-19 pandemic has had a big impact on the entire world market and caused sales in Southeast Asia to decrease sharply. However, the effects to the Vietnamese market were insignificant. Since the government of Vietnam decided to reduce the vehicle registration tax by 50 percent, the car sales only slightly decreased, which helped Vietnam become the fourth largest automobile market in the region. Analysts predict that Vietnam will surpass Malaysia in the future to jump to the third position. In general, the development of the automobile market depends on three factors – scale and population structure; the average income per capita; and average number of cars per 1,000 people. In Vietnam, motorization begins when the average GDP per capita reaches $3,000 per annum. The average number of cars per 1,000 people is still low, while the middle class, or the major clients of personal cars, is expanding rapidly. In a report released recently, SSI commented that Vietnam’s automobile market is now large enough to step up domestic manufacturing. Six manufacturers hold 90 percent of the market, including Truong Hai, TC Motor, VinFast, …

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The Hanoitimes - The low sale volume was due to difficult economic conditions that forced customers to tighten spending. Despite various sales promotion programs from car dealerships, the domestic car market remains quiet ahead of the Tet festival. Customers at a car dealership. Photo: Le Nam. To boost car sales, car dealerships have been offering sales promotion programs that go up to thousands of US dollars per car, or car accessories upon purchase. For example, customers buying Hyundai Santa Fe would be subject to a discount of VND50-60 million (US$2,200-2,600), and VND12 million (US$522) for Hyundai Elantra. Suzuki is also offering discounts for most of its car models in range of VND25-42 million (US$1,100-1,800), including Ertiga, Ciaz, XL7 and Swift. Vice General Director of Nissan Tay Ho Nguyen Tri Bay said Nissan is lowering prices for pickup truck Navara by VND36 million (US$1,600) and extend its insurance period to five years, while the SUV X-Trail is subject to a discount of VND124-152 million (US$5,400-6,600), depending on certain models. Mitsubishi is offering a competitive pricing policy with a discount of VND55-65 million (US$2,400-2,800) for Outlander, not to mention car accessories; Pajero Sport buyers would receive gifts worth up to VND55 million (US$2,400). Buyers of US automaker’s latest model of Ford Everest 2021 are subject to  a promotion sales program with a financial support of up to VND75 million (US$3,200) in registration fee. While discount programs are being offered, the number of car sales have plunged by 50% month-on-month in January, with many pointing to the expiration of the government’s supporting policy by shaving 50% off the registration fee for domestically-produced cars at late 2020. Director of Toyota Thang Long Pham Quoc Hien said the low sale volume was due to difficult economic conditions that are forcing customers to tighten spending. “Many customers are also waiting for new car …

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The Hanoitimes - With the Covid-19 impacts still looming on local economy, domestic car prices have gone down but remained nearly double the prices of vehicles sold in Thailand and Indonesia, mainly due to high fees and taxes for locally made cars. Rising domestic production capacity and existing government’s support policies to cut fees and taxes for locally made cars are expected to be major factors dragging down car prices in Vietnam in the coming time. Car production at Hyundai Thanh Cong manufacturing plant. Photo: Hoang Giang A representative from the Truong Hai Auto Corporation (Thaco), one of Vietnam’s leading car manufacturers, expected the country’s participation in free trade agreements (FTAs) with major partners, including the EU, Japan, UK and South Korea, would help further abate costs for importing car parts with import duty at 0%. With the Covid-19 impacts still looming on local economy, domestic car prices have gone down but remain nearly double the prices of vehicles sold in Thailand and Indonesia, mainly due to high fees and taxes for locally made cars. “High product quality and low base cost are essential for Vietnam cars to compete with their foreign peers,” said auto expert Nguyen Minh Dong, adding only a bigger market size could attract more investors to come in to produce cars in the country and enhance localization rate. Director of Hien Toyota noted while car manufacturers can streamline operation to drive down the production cost, taxes and fees are dependent on state policies. “Lowering taxes and fees for cars will no doubt reduce prices and bring more benefits for customers,” she said. Booming market demand A recent report from the SSI Securities Corporation suggested Vietnam’s income per capita is on the rise and set to grow at an average of 8-10% in the next decade. “Compared to regional countries, the current income per capita is fast approaching to a point of bursting demand for cars,” …

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