China Car Forums banner

1 - 16 of 16 Posts

·
Registered
Joined
·
264 Posts
Discussion Starter · #1 ·
Lifan Autos Growth in Vietnam

China's Lifan group first entered the Vietnamese market in 1997. After nearly 10 years of marketing and reputation building, the company's vehicle with its high quality and low price has now become increasing popular among Vietnamese consumers.

Lifan is not the only Chinese product that has successfully tapped the Vietnamese market.

Several years ago, due to the infiltration of counterfeit goods and a number of other reasons, the image of Chinese products in Vietnam was blemished.

With their clear investment strategies in Vietnam, these leading Chinese enterprises have successfully brought their products to Vietnamese households, changing the image of Chinese goods, and contributing to broadening and deepening China-Vietnam trade ties.

Lai Yonghua, general director of Lifan Vietnam, a joint venture, said Lifan now engages in the combination mode of production, supply and purchase with various products, including cars, motorbikes, engines, petroleum-powered machines and electricity-run vehicles, not just the export mode with motorbikes and their engines as in the early period.

With Vietnam's accession to the World Trade Organization, Lifan plans stronger investment in the country with additional 200 million U.S. dollars and building a 200-hectare Lifan industrial complex. It even eyes market expansion in the region when the China-ASEAN (Association of Southeast Asian Nations) free trade area is established.

The two neighbors are now actively working for a long-term cooperation in such fields as infrastructure, energy and transport, including the facilitation of the process of signing a memorandum of understanding about two economic corridors and one belt, and the implementation of large-scale projects, including those on roads and thermoelectric plants
 

·
Registered
Joined
·
807 Posts
China’s Lifan group has been cooperating with the Vietnam Motor Corporation (VMC) to assemble Lifan cars in Vietnam.

The first domestically-assembled Lifan cars will be launched onto the market in February 2007, according to Nguyen Van Binh, Director of Bao Tan Company Ltd.

The first batch of 10 cars is being assembled and verified at the VMC workshop in Thanh Xuan District in Hanoi. The products are expected to be marketed soon – in early February. The Chinese car is expected to be advantageous in Vietnam’s market in terms of price with the current import tax rates of 25-30% on sets of car parts, and the tax rate of 80% on imported brand new cars.

According to Mr Binh, the model which is being assembled in Vietnam is the Lifan 502, which was introduced at the Vietnam automobile exhibition in June 2006. There are two kinds of engines, 1.3L and 1.6L, with different options to meet different tastes of customers. The approximate selling prices of the cars will be $15,000/unit (including VAT) for the 1.6L and $12,000 for the 1.3L.

Bao Tan Company will be the distributor of Lifan cars nationwide. The main customers that Lifan cars target are those with medium incomes, taxi firms, small travel firms and car leasing companies.

Meanwhile, analysts have said that the manufacturer’s suggested retail prices (MSRP) mentioned above are still high, and thus it would be difficult for the car to compete with the Gentra of GM Daewoo in Vietnam. The Gentra has a 1.5L engine and an MSRP at $18,400/unit for Modern S and $18,900 for Modern SX. However, in fact, customers can buy Gentras for $16,000/unit.

Sources said that a set of Lifan 502 car parts in China is just $4,000/set; therefore, the MSRP proves to be quite high. In the second half of 2006, several consignments of Lifan 502s were imported for sale in HCM City and Hanoi. An imported Lifan 502 1.6L was sold for $16,000, but sales were very slow, with only some 20 units sold, though the distributor launched big advertisement campaigns.
source:vneconomy.com.vn
 

·
Registered
Joined
·
1,268 Posts
Vietnam Motor Corp has been involved with CKDs since the early 90s having assembled Kia and Mazda models and later BMWs and Subarus.

I think Lifan should do well in Vietnam as I'm guessing it has gained a good reputation for its low cost motorcycles there.
 

·
Premium Member
Joined
·
1,055 Posts
Lifan finally launched officially in Vietnam

Lifan 520, a four-seat car model of the Chinese Lifan group, was launched in Hanoi Tuesday with a price tag of over 16,000 U.S. dollars, becoming the first Chinese sedan assembled in Vietnam


This is good news for Lifan, lets see how it does in the first 6 months.
 

·
Registered
Joined
·
240 Posts
you can buy so many alternative cars for that price , I really can't list them here.:)
the only thing I could think about was of course the high price which will be a disadvantage.
ıf chinese cars weren't cheaper then their alternatives , they wouldn't sell even in the underdeveloped countries.the consumers prefer the European cars,and then the japanese ones and after that the koreans.
the Chinese cars entered this harsh global car market very strongly due to their price I remember.
but in ten,fifteen years they will be somewhere better than they are now that's for sure.:)
 

·
Registered
Joined
·
305 Posts
Agreed....

$16,000? In US dollars?? For a LIFAN???????? BAD business move on their part...........I don't think they are selling very well even in China (I haven't seen ONE on the roads in Nanning yet, and they've been on sale for a little while now). I don't think it's a BAD car per se (even though it failed crash tests), but Lifan is doing NOTHING to make itself "stand out" amongst the competitors. I see very little advertising or promotion, and no incentive for potential buyers to go to the showroom to even LOOK at the car(s)!! Good luck Lifan - you're going to need it.
 

·
Registered
Joined
·
5 Posts
Cars in Vietnam are very expensive due to the very high taxes. You can not buy much for under 16,000 usd in Vietnam, this is just 1000usd more than a new Suzuki Wagon R.(old shape out production in Europe about 10 yrs ago) I saw a Lifan at the Autopedro show in Saigon a few months ago, I can't remember the model. Lifan may struggle in Vietnam because when it comes to cars the Vietnamese prefer to pay the extra for Japanese brand, Toyota and Honda dominate the market here.
 

·
Registered
Joined
·
1,268 Posts
jmsteiny said:
........but Lifan is doing NOTHING to make itself "stand out" amongst the competitors. I see very little advertising or promotion, and no incentive for potential buyers to go to the showroom to even LOOK at the car(s)!! Good luck Lifan - you're going to need it.
Yes, you are right JM Steiny, Lifan is not marketing itself very well these days. Its time to partner with some dynamic global presence like Subaru, who I might add has otherwise missed the boat in China. Subaru, if you are listening, being in the interior (Chongqing), on the edge of rugged territory has some real potential for your 4X4 AWD lineup.

Mtj 73, aside from the 520 sedan, I don't think it really has much to offer?
Oh yeah it maybe has a few minitrucks and vans but they're hardly noticeable.

In Vietnam however I think it can claim an advantage owing to its former presence in motorcycles. It's good reputation there will give it some brand recognition at least.
 

·
Registered
Joined
·
5 Posts
I have just found the brochure I picked up at the show. Your right it is the 520, it starts at 14,500 for the 1.3L and 16,500 for the 1.6L It also makes reference to the engine being a BMW design. Still not seen many on the road. The Vietnamese are very brand orientated, Lifan bikes have a reputation here for being good value but don't last as long as the Honda's. It will take time to convert the buyers in Vietnam off the Japanese brand cars and the Korean buses but it would happen after some good marketing. I good example is a scooter made by Taiwanese company SYM, nobody here knew this company 10 years ago but with some clever marketing the SYM Attila is by for the most popular scooter in the country today.
 

·
Administrator
Joined
·
17,008 Posts
Lifan halts Vietnam investment plan.

June 11, 2008 - Chinese auto group Lifan will suspend its plan to invest in a new plant in Vietnam due to economic uncertainties in the country, an unnamed company official told Shanghai Securities Journal yesterday.

Lifan was initially planning to spend $50 million in its manufacture ring plant in Vietnam, to make 50,000 sedans annually by 2011. The company may also export vehicles to other ASEAN countries from Vietnam, the report said.

"But now we have to reconsider our strategies in this region," said the official.

Driven by high global energy and food prices, Vietnam's inflation has hit 25 percent year-on-year in May. In the automobile industry the tax on imported new cars was increased twice in the month – from 60 percent to 70 percent and then to 83 percent.

Other car importers in Vietnam, including the official distributors of Porsche, Kia and BMW, are also watching out for any new move from the government that will further drive up the prices of imported cars.
source: Gasgoo.com
 

·
Administrator
Joined
·
17,008 Posts
China's Lifan pursues new plant in Vietnam.

July 03, 2008 - China-based motorcycle and automotive manufacturer Lifan Group hopes to go ahead with its planned car assembly plant in Viet Nam, in spite of the current difficulties facing the south-east Asian country’s general economy and its automobile sector in particular.

Lifan plans to invest US$50 million in a factory that would be capable of producing 50,000 cars per year, said Lu Jiang, Lifan’s official responsible for the Viet Nam project. The Chinese company submitted an application for an investment licence to the Ministry of Investment and Planning (of Viet Nam) six months ago, but they are still waiting for it, said Jiang.

The factory, which will be developed from an existing assembly line, will be put into full-operation three months after receiving the licence, he said.

Lifan has refused to reveal who is partnering their project. However, the company has previously co-operated with the Viet Nam Motor Joint Venture Company and the Bao Toan Company to assemble cars in Viet Nam. This was restricted to 20-40 units per month, though.

Viet Nam’s car market has suffered declining sales due to the State’s decision to increase car taxes and fees. But, Lifan still believe that the domestic car market has long term potential, as the country develops economically and standards of living rise.

The Vietnamese factory has many advantages, including the State’s preferential policies for car producers, low labour and production costs, and favourable conditions for exports to other ASEAN countries, Jiang said.
From:Viet Nam News
 
1 - 16 of 16 Posts
Top