As taxes fall to zero, automakers race to offer discounts

The price of cars in Vietnam's automobile market has been significantly influenced by a series of new tax policies that will come into effect this year. In particular, from January 1, automobile import tax from ASEAN countries into Vietnam and import tax on automobile parts officially dropped to zero.

In January 2018, Chevrolet Vietnam continues to apply discount program for many models. In particular, Chevrolet Spark is currently the five-seater car having the lowest price in the Vietnam automobile market. The price of the old Spark LS was reduced from to VND339 million (roughly US$14,950) to VND269 million (roughly US$11,863) for the purpose of discharge.

General Motors Vietnam (GM Vietnam) has also supported the move to reduce the price of the Chevrolet Colorado by up to VND30 million (roughly US$1,323) in just one month. Besides, other assembled cars of GM Vietnam such as the Aveo and Cruze have also been sold at much lower prices. 

The price of the Captiva is reduced by VND44 million (roughly US$1,940), Aveo sedan B class has been reduced by VND40 million (roughly US$1,764), Cruze C-class model has been reduced by VND60 - 80 million (roughly US$2,646-US$3,528) in December of last year.

Despite not benefiting from the tariff reductions on imported cars from ASEAN, the prices of Kia and Mazda assembled and distributed domestically by THACO will be also reduced as the special consumption tax on 2.0L engine car decline by five percent.

The price of the Kia Morning, one of THACO's flagship vehicles in Vietnam, is also continuously discounted in order to compete with other rivals in the segment. The selling price for Kia Morning has decreased from VND327-416 million (roughly US$14,421-US$18,346) in January 2017 to VND220-390 million (roughly US$9,703-US$17,199) in 2018, reaching the lowest level.

In particular, Kia Cerato has the strongest reduction. Accordingly, the prices of Cerato 1.6 MT, Cerato 1.6 AT and Cerato 2.0 AT have been reduced by VND 100 million (roughly US$4,410) within just one year to VND519 million (roughly US$22,888), VND579 million (roughly US$25,534) and VND629 million (roughly US$27,739) respectively.

Prices of Mazda brands assembled and distributed by THACO has also fallen sharply from the beginning of last year. Specifically, the price of Mazda2 1.5 sedan reduced from VND590 million (roughly US$26,019) to VND499 million (roughly US$22,006).

In addition, the price of Mazda3 2.0 sedan reduced from VND829 million (roughly US$36,560) to VND720 million (roughly US$31,753) from January 1, 2018. Prices of the Mazda 3 1.5 sedan and hatchback versions have been reduced to VND639 million (roughly US$28,180) and VND669 million (roughly US$29,503) within last one year.

The CUV CX-5 is currently sold at a new price of VND859 million (roughly US$37,883) which is VND20 million (roughly US$882) lower than that in the launching time.

Toyota Vietnam has also officially announced new retail prices for domestically assembled vehicles with 100% imported parts in 2018. Accordingly, the VND24-58 million (roughly US$1,058-2,557) discounts are applied to most models.

Toyota Vios, the best-seller in Vietnam last year, is not out of the race. In early November 2017, Toyota officially announced the reduction of VND48-58 million (roughly US$2,116-2,557) for the versions of Vios, pulling the price of sedan B-class attracting most customers in the market to VND484-586 million (roughly US$21,345-25,843). According to Toyota Vietnam, this is also the price of Vios this year.

In addition, some other car manufacturers such as Nissan and Ford Vietnam have entered the race of automobile discounts with the biggest reduction in December 2017 ranging from VND40-50 million (roughly US$1,764-2,205).