To clear inventory, Chinese automakers and auto dealers offer nearly 100 million rd/unit discounts, thus increasing consumption.
From mid-August to early September, a series of Chinese models fell sharply. For example, the BAIC X55 dropped from 550 million VND /unit to 488 million VND/unit, and the BAIC Q7 decreased by 90 million VND to 498 million VND. Zotye Z8 fell sharply from VND 758 million to VND 668 million. Brilliance V7 dropped from VND 738 million to VND 718 million per unit.
New promotion
Similarly, Tong Feng's models (such as T5 and X5) are also discounted by tens of millions of rd/unit. In addition, the MG brand imported from China has just entered the Vietnam market at a price of 515 million VND/vehicle, launched 5 models, and immediately adopted a 50% registration fee and a warranty of 5 years and unlimited kilometers, and can enjoy 5 free maintenance.
Max Auto Saigon's representative (many Chinese models assigned in Ho Chi Minh City ) explained that the reason for the decline in Chinese automobile prices is that the cause of Covid-19 coincides with the first month of July, causing the car market to decline. If you don't have a discount to attract customers, business will be very difficult. In addition, automakers in the market are competing to sharply lower prices, so Chinese cars cannot stand out.
"Due to the implementation of preferential discount policies, we sold 50 Chinese cars in August, and in the first half of September, we also sold more than 20 cars, a lot of growth compared to the first few months of this year" - the representative said.
auto dealers believe that the reason for the sharp decline in China's automobiles is that enterprises (DNs) and import agents want to completely process inventory to clean up warehouses and choose new models that dock at the port. Release of inventory is also a major target for many Chinese automakers after nearly a year of pandemic economic impacts, so they are sold at relatively "soft" prices, and this source of supply has been collected. Consume in Vietnam. The epidemic of
has also created a trend of "preferred" discounts and promotions for most consumers, especially in recent months when they often enjoy discount plans when buying anything. Mr. Wu Minxiong, the owner of the car dealership rights of Conghua Street (Tanping District, Ho Chi Minh City), admitted that not only Chinese cars but also Japanese, American, German, South Korea... To sell goods, you must have a continuous discount policy for accessories donation and support costs.
"Discounts are now a trend. Within a month, there are few cars to sell without incentives for customers. Visitors visiting the showroom often ask "whether there are discounts or offers." "…If the employee shakes his head, the customer will turn around and leave." Mr. Hong said. After a period of hard work to win the favor of Vietnamese customers with discounts, interior and exterior improvements, Chinese cars are gradually becoming more and more popular. Companies are beginning to consider assembling cars in the consumer market without having to import cars. Mr. Chen Engu, business director of
Sutong Import and Export Services Co., Ltd. (specially distributing Chinese Dongfeng cars in Vietnam), said the company is planning to expand its distribution system. In the best customer service area. In addition, Dongfeng is preparing to establish a joint venture with its partners in Vietnam to assemble cars and enter other markets in the region from here. "Chinese auto companies with factories in Vietnam will have huge advantages not only in reducing costs, but also in building a more trusting attitude for customers." Information from the
car dealership shows that MG auto companies are also assembled in Indonesian to bring the car to Vietnam to "eliminate" Chinese ancestry, thus eliminating the anxiety of Vietnamese consumers. After that, MG will turn to assemble cars in Vietnam. Previously, in order to prepare for the steady development of the Vietnamese market, MG quickly opened 5 agents in Ho Chi Minh City, Hanoi and Nghe An. Mr Teh Kim Hwa, general manager of TC Services Vietnam, MG Vietnam’s official distributor, even plans to open 20 dealers nationwide within one year of its launch. .
Since mid-2019, Tan Chong Motor Group has signed a memorandum of understanding with SAIC International (China) to expand its business in Vietnam, including assembly, sales, import and distribution. motorcycle.Tan Chong Motor owns a car assembly plant in Vietnam, while SAIC Motor International owns car brands Maxus, MG and Roewe . Not only does Tan Chong Motor intends to assemble Chinese cars in Vietnam, but other importers are also seeking cooperation to sublease the Tan Chong Motor factory in Da Nang instead of importing Chinese cars.
experts say that if Chinese cars are assembled in Vietnam, the selling price will be 25% lower than imported CBU cars. For example, the current car price will drop from VND 600-700 million per unit to VND 450-550 million per unit. This is a very attractive price for Vietnamese consumers.
