The Vietnamese auto sector has recently witnessed a surge in the introduction of new car models, both internal combustion engine vehicles and electric ones. Automakers are continuously improving their offerings to meet the growing demands of consumers. These new models come with advanced features and enhanced technology, making them attractive to potential buyers. Alongside the launch of these new vehicles, several manufacturers have also revised the prices of their cars, providing discounts and subsidies to encourage sales.
New Car Models and Price Revisions
Over the past few months, more than 10 new car models have been introduced in the Vietnamese auto market. These models come with exceptional features and cater to the evolving needs of consumers. The prices of these new cars have also been revised, with discounts ranging from a few tens of millions of dong to as much as 534 million VND. For instance, Hyundai Thanh Cong has reduced the prices of its Santa Fe and Tucson models by a maximum of 191 million VND. Honda is offering price cuts equivalent to 100% of registration fees, while Toyota provides a 50% subsidy on the remaining registration fee for customers purchasing Vios cars. Other brands like Volkswagen and Mercedes-Benz are also offering support and discounts to attract buyers.
Challenges in the Used Car Market
The introduction of multiple new car models accompanied by significant discounts has intensified the challenges faced by the already struggling used car market in Vietnam. Although many car owners and dealers have tried to reduce prices to attract buyers, they still struggle to make sales. Several factors contribute to the difficulties encountered in the used car market, with one primary issue being the complex procedure for transferring used car titles. Implemented from August 15, 2023, the new regulation has prolonged the process, dampening consumer enthusiasm and leading to a decrease in car sales.
Nguyen Hoang, who operates a second-hand car showroom in Hanoi, explained that the new regulation has caused delays in transferring names and changing license plates for customers. In the past, these procedures took only a few days or at most a week, even for vehicles from other provinces. However, since the implementation of the circular, it now takes several weeks or even more than a month to complete the process. This delay has made customers impatient and reluctant to buy used cars, resulting in a sharp decline in sales compared to before.
Economic Difficulties and Consumer Behavior
Apart from the challenges posed by the new regulation, the used car market is also facing difficulties due to general economic hardships. With car manufacturers frequently promoting and discounting new car prices, consumers are less inclined to purchase second-hand vehicles. This shift in consumer behavior has led to a drop of approximately 20-30% in the used car trading sector since before August 15.
Used car dealers have expressed their hopes for regulatory bodies to introduce suitable regulations that facilitate the process of transferring used car titles. They believe that implementing such measures would enable prospective buyers to undergo the procedure more swiftly and effortlessly, potentially aiding in the revival and growth of the used car market.
The used car market in Vietnam is facing significant challenges, primarily due to the intricate procedure for transferring used car titles and general economic difficulties. The introduction of new car models with attractive discounts has further intensified these challenges. However, there is hope for the revival of the used car market if suitable regulations are introduced to streamline the transfer process. By addressing these issues, the used car market can regain momentum and continue to serve as a viable option for car buyers in Vietnam.