Luxury cars

The slow sales of electric cars indicate that Vietnamese are still hesitating to use this kind of vehicle. The problem is not high price, but concern about operation and local infrastructure such as recharging stations. VinFast announced it has successfully developed three smart SUV electric cars VinFast, the 100 percent Vietnamese-owned automobile manufacturer, announced it has successfully developed three smart SUV electric cars VF31, VF32 and VF33, having a self-propelling feature and using AI. The manufacturer plans to begin taking orders for VF31 standard version from May 2021 and deliver in November 2021. As for VF32 and VF33, it will begin taking orders from September and deliver from February 2022. The Vietnamese electric car market, which began developing several years ago, is expected to warm up in the time to come with the presence of VinFast. Agencies report that car demand in Vietnam is increasing rapidly, and is expected to reach 800,000 cars per annum by 2025 and 1 million cars per annum by 2030. The rapid increase in the number of cars will lead to a high volume of emissions which will pollute the environment. Electric cars will be a good solution, especially in large crowded cities. Three years ago, Mitsubishi Vietnam launched two models – iMIEV and Outlander PHEV. The former used 100 percent electricity, while the latter was a hybrid, using both petrol and electricity. With a full battery, the car could run 60 kilometers. However, they didn't sell well. Porsche Vietnam in October 2020 distributed the electric Taycan model with three versions – Taycan 4S, Turbo and Turbo S. However, only two products were brought to Vietnam and shown at the product introduction ceremony. Fuso, a brand of German Diamler, once had a plan to bring electric vans to Vietnam in 2019, but that has not occurred. A survey by Frost & Sullivan, in Southeast Asia, including Indonesia, Thailand, Malaysia, Vietnam and the Philippines, high prices …

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Vietnam aims to obtain a GDP growth rate of 6.5 percent this year and average income per capita of $3,700. With rising incomes, car sales are expected to boom. One report said that 420,000 cars of different kinds were sold in 2020, including 400,000 cars with 16 seats or less, the same as 2019. Vietnam’s car market did not grow in 2020, but did not decrease by 15 percent as previously predicted by VAMA. Car sales dropped sharply in the first half of 2020 when the Covid-19 pandemic broke out. However, the sales went better in the last months of the year thanks to effective control of the pandemic, a 50 percent vehicle registration tax reduction policy, and car price decreases. While some enterprises reported minus growth rates, others still had positive growth rates. VinFast, a newcomer, with 30,000 cars sold in 2020, has successfully taken away market share once held by other manufacturers. SSI has estimated that the automobile market will see a growth rate of 16.3 percent in 2021 as car demand continues to be high. The figure may be 3 percent higher if the Covid-19 pandemic is contained. According to Vietnam Register (VR), there are 34 cars per 1,000 people in Vietnam. The figure is relatively low compared with other regional countries and the world. With average income increasing, cars will turn from a luxury good to a more common consumer good and the market size will increase, offering an opportunity to develop the automobile industry. According to Vietnam Register (VR), there are 34 cars per 1,000 people in Vietnam. The figure is relatively low compared with other regional countries and the world. Businesses believe that B-class sedans will serve as the mainstay to promote the development of the industry. The sales of B-class sedans lead the market with more than 60,000 cars sold in 2020. Despite difficulties caused by Covid-19 in 2020, the market segment still obtained growth. Toyota Vietnam reported that 30,000 Vios were …

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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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