Car-makers look to hit top gear

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Báo Đầu Tư English - 34 month(s) ago 8 readings

Car-makers look to hit top gear

Car manufacturers are driving to boost sales amid fears the current fee scheme will hurt business plans.

Toyota Motor Vietnam (TMV) aims to sell 550 Innova and 560 Fortuner multi-purpose vehicles per month.

However, these sales figures do not take into account fee factors like the road-use fee to be applicable from June 1, 2012 or the Ministry of Transport’s proposed vehicle circulation fee which was under government consideration, according to TMV’s general director Akito Tachibana.

TMV’s simultaneous launching of Innova and Fortuner new versions late last week were expected to bring some hopes to the stagnant market.

Innova, which first appeared in 2006, has been the best selling car in Vietnam’s auto market with an accrued sales figure reaching 60,000 units as of February 2012, making up 64 per cent of the multi-purpose vehicle market share.

Fortuner also leads mid-size sport utility vehicle segment with 20,000 vehicles being sold in three years, representing 47 per cent of this segment market share. Average sales figures were then 900 units per month for Innova and around 550 units for month for Fortuner from its debut.

Vina Mazda just aired an attractive promotion programme with price discounts and insurance preferences to Mazda 2 and Mazda 3 in March at a total value of more than VND45 million ($2,140) per car.

Mercedes Benz Vietnam rolled out the ‘golden promotional month’ programme with a discount of up to 5 per cent for passenger cars and 10 per cent for commercial vehicles this month.

Though holding high hopes for the auto market’s vibrant development in Vietnam, car manufacturers expressed worries about current fee scheme levied on automobiles.

Accordingly, except the road-use fee to be applicable from June 1, 2012 with a proposed amount from VND180,000 to VND1.44 million ($8.5-$68.5) per month, motorbike and car users incurred seven different kinds of fees such as ownership, number plate registration, petroleum, registration and quality certification fees.

Besides, in a recent working session with Ho Chi Minh City authorities, Deputy Prime Minister Nguyen Xuan Phuc said the government needed the circulation fees to restrict personal car usage.

However, TMV’s deputy general director Dang Phan Thu Huong said: “Fee hikes and a series of measures cutting personal car usage to better local traffic conditions are scaring investors. Infrastructure woes might be sooner or later addressed, while it is almost impossible to call back retreating investors.”

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