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Three-way auto market showdown in Vietnam

4505 Views 2 Replies 2 Participants Last post by  pokershark
VietNamNet – Car buyers now have more than one choice open to them. They can choose between cheap Chinese imports, used imports, or new locally made vehicles.
VietNamNet – Car buyers now have more than one choice open to them. They can choose between cheap Chinese imports, used imports, or new locally made vehicles.

Analysts believe that the automotive market will develop a three way battle between producers and importers in the near future.

The Chinese-made Lifan 520, with its glossy appearance, gained a great deal of consumer confidence at Autotech 2006, an automotive trade fair. The first Lifan 520s are expected to be available in Vietnam this August.

Meanwhile, the Chinese Gonow Jetstar – an SUV assembled and distributed by Truong Thanh Company, priced at $19,500/unit, could also prove a good choice for car buyers, who prefer SUV models, but cannot always afford an Escape, BMW X5 or Mercedes M-Class. The Chinese model is therefore expected to compete very well against locally produced models like the Terios and Vitara, which price at over $20,000.

Previously, Vietnam’s automotive market was controlled by Vietnam Automobile Manufacturers Association (VAMA) members. Prices offered by manufacturers were always far higher than those in the international market. A car priced at $20,000 in a European country, would cost nearly $40,000 in Vietnam. This has led Vietnamese customers to expect that the appearance of Chinese models will be a hard slap in the face of local manufacturers.

They also expect the inflow of used imports to create more market option for buyers. Used cars are still very expensive, but market analysts believe that they will still sell. A BMW X5, for example, has a post-tax sticker price of $70,000, and is still considered better than a Land Cruiser assembled by a local manufacturer.

In general, used imports will sell to high income earners only, while VAMA and Chinese manufacturers will struggle to sell cars to the middle-class. It is unclear now, who will claim top stakes in the market, as the quality of the cheap Chinese cars remains unknown.

(Source: TBKTVN)
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Influx of Chinese autos driving competition in Vietnam

VietNamNet – Local automobile manufacturers all say that they are worried about the overflow of Chinese cars into Vietnam, which, thanks to low prices, may dominate the market.

Though the Chinese Lifan 520 was introduced just a few days ago, auto salons planning to sell the new models are mushrooming in Mekong Delta provinces selling vans and pick-ups at prices just 50-60% of Hyundais or Isuzus. The new showrooms will be the main distributors the Chinese sedans.

Huynh Xuan Phong, Sales Director of Saigon Ford, said that the Chinese models appeal to Vietnamese customers for their low prices, but some are still worried about quality.

Tran Van Toi, Marketing Director of Mekong Auto, said that the Chinese models attract local customers for their diversity, and that many local models were out of reach for many due to their higher price.

Mr Toi added that the development of Chinese automobile industry has been worrying even the auto giants in the US and Europe. China has bought back the famous British Rover, exported cars to many countries in the world and made the products that can compete with world auto giants.

“Chinese cars will be the worrying competitive products, which should not be disregarded,” Mr Toi said.

Though still cautious about sales, dealers are moving ahead.

The newcomer on the domestic market has caused headaches for the Vietnam Automobile Manufacturers’ Association (VAMA), forcing them to re-think how they will compete without cutting prices.

Mr Toi said that VAMA is lobbying the Government for higher technical barriers on the Chinese imports, but pointed out that even that may not stop the flow.
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so what i get from all these articles...chinese car companies will and basically have dominated the Vietnam auto industry..

good work china..take country 1 by 1 :nod:
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