Car sales in Sep plummeted, according to a Vietnam Automobile Manufacturers’ Association (VAMA).
While a new automobile marketplace has witnessed a downward trend in sales and offered price, a used automobile marketplace is, however, utterly busy, even nonetheless a automobile import taxation from ASEAN will be reduced to 0 per cent from Jan 1, 2018. — Photo baoquangninh.com.vn
VAMA’s news suggested 21,216 units were sold, down 4 per cent from a prior month and down 20 per cent opposite a same duration final year. The sale enclosed 11,637 newcomer cars, 8,700 blurb vehicles and 879 special purposed vehicles.
Domestic automobile prolongation reached 14,739 vehicles, down 5 per cent from a prior month and a series of alien vehicles was 6,477 vehicles, dwindling by dual per cent from a prior month.
Cumulative sum sales of a whole marketplace in a initial 9 months of this year reached 198,246 units, dwindling by 8 per cent over a same duration final year.
Used automobile market
While a new automobile marketplace has witnessed a downward trend in sales and offered price, a used automobile marketplace is, however, utterly busy, even nonetheless a automobile import taxation from ASEAN will be reduced to 0 per cent from Jan 1, 2018, that is coming to have a poignant impact on a domestic automobile market.
However, this is not worrying used automobile businesses given their trade is customarily shopping and offered in a brief term.
On streets in Hanoi, including Duong Dinh Nghe, Nguyen Chanh, Pham Hung, Le Van Luong and Nguyen Van Cu, that have showrooms offered used cars, a accumulation of cars and brands are sole — from inexpensive cars such as Kia Morning, Hyundai Grand i10 and Hyundai Getz and renouned cars such as Toyota Vios, Kia Cerato, Honda Civic, Toyota Fortuner and Ford Ranger to lush cars like Rand Rover, Lexus and Audi. The cost depends on a automobile indication and quality.
Several owners of showrooms on Le Van Luong and Nguyen Van Cu streets told Vietnam News Agency that a competition for shortening prices of new cars among automobile businesses from dozen of millions of đồng to hundred million đồng had caused a headache for used automobile salon owners. The cost rebate of new cars has forced businesses to revoke a cost of used cars to get a “nod” from customers.
Nguyễn Nhất, owners of a Ha Dong Automotive Salon, pronounced with a disappearing trend of import taxation on finish built-up units, businesses raced to revoke prices of used cars — both new and aged models — to win marketplace share and ready for a new business period.
An worker of a Sàn Ô tô Thủ đô Automotive Salon pronounced prices of new cars had forsaken invariably given a commencement of a year, while a prices of used cars also decreased significantly from 10 to 15 per cent.
The worker pronounced some-more than 30 cars were sole per month on average, not dwindling most in comparison with a same duration final year. From all a segments of cars accessible in a salon, a shred of cars value VNĐ400-500 million (US$17,566-21,958) sole a best.
According to business calculations, used cars, that were used for dual or 3 years, are always labelled during 70-80 per cent of a cost of a new car. In addition, a registration cost for a used automobile is customarily dual per cent, while it is 12 per cent for a new car.
However, shopping a used automobile is totally opposite from shopping a new car. Customers will have 0 to be endangered about when they squeeze a new car, while in a box of a used car, it is formidable for them to consider a peculiarity and price. The peculiarity of used cars depends on many factors, such as how a owners confirmed a car, if it was shop-worn in floods or endangered in an collision or if a tools were changed.
Businesses pronounced with Jan 1, 2018 approaching, nonetheless a import taxation on new cars from ASEAN to Viet Nam would revoke to 0 per cent, a cost of new cars would be indeterminate given applicable agencies had not nonetheless released business conditions in this field.
In addition, underneath vigour to boost infrastructure, a Government would take measures to shorten personal vehicles, as a outcome of that other taxes and fees of cars could be increased, causes a cost to rise.
Meanwhile, according to a financial ministry’s breeze direct replacing Decree 122/2016 associated to favoured import tariff, a import taxation on used vehicles will neatly boost from Jan 1, 2018. Accordingly, cars with 9 seats and reduction and engine banishment of next 1,000cc will be taxed during US$10,000 each, $5,000 aloft than a stream rate.
Vehicles with engine banishment of 1,000cc to reduction than 2,500cc will be theme to a sundry taxation rate of 200 per cent or 150 per cent and $10,000.
According to calculations, this new taxation rate is some-more than dual times aloft than a stream rate, creation a cost of a used automobile some-more costly than that of a new car. The import of used cars will, thus, be on their approach out in Viet Nam. As for a domestic used automobile market, it’s customarily shopping and offered in a brief term, hence, businesses are not really endangered about a change of taxation and cost policies.