Forex rates eat into car sales

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VietNam News English - 43 month(s) ago 17 readings 2 duplicate news

Unfavourable foreign exchange rates in February have taken a toll on the sales of imported automobiles.

HA NOI —

Total sales by members of the Viet Nam Automobile Manufacturers Association (VAMA) reached just 7,889 units in February, a decrease of 24 per cent from January sales, with passenger car and SUV sales declining by an even more substantial 35-37 per cent, according to VAMA representative Nguyen Anh Tuan.

Luxury marques boost hotel fleet sales

Luxury automakers are shifting their business models in order to drum up new sources of sales, with BMW and Mercedes-Benz looking to boost fleet sales to hotels and resorts.

BMW has delivered eight BMW 730Li luxury vehicles and Mercedes-Benz E250 vehicles to the five-star Sofitel Legend Metropole in Ha Noi and the five-star Sofitel Sai Gon Plaza in HCM City. Sofitel Sai Gon Plaza general director Philippe Godard said that making deluxe vehicles available to customers was part of the hotel's comprehensive plan to upgrade.

BMW fleets have already been chosen by the Sheraton Sai Gon Hotel, Sheraton Nha Trang Hotel, Movenpick and Hilton Ha Noi Hotel, while Mercedes Benz fleets are in use by the InterContinental Sai Gon, Windsor Plaza Hotel, Park Hyatt Sai Gon and New Horizon Hotels. — VNS

January auto sales had totalled 10,424 units, an increase of 48 per cent over the prior January but still 17 per cent lower than sales in December 2010.

Luxury marques boost hotel fleet sales

Luxury automakers are shifting their business models in order to drum up new sources of sales, with BMW and Mercedes-Benz looking to boost fleet sales to hotels and resorts.

BMW has delivered eight BMW 730Li luxury vehicles and Mercedes-Benz E250 vehicles to the five-star Sofitel Legend Metropole in Ha Noi and the five-star Sofitel Sai Gon Plaza in HCM City. Sofitel Sai Gon Plaza general director Philippe Godard said that making deluxe vehicles available to customers was part of the hotel's comprehensive plan to upgrade.

BMW fleets have already been chosen by the Sheraton Sai Gon Hotel, Sheraton Nha Trang Hotel, Movenpick and Hilton Ha Noi Hotel, while Mercedes Benz fleets are in use by the InterContinental Sai Gon, Windsor Plaza Hotel, Park Hyatt Sai Gon and New Horizon Hotels. — VNS

Imports of completely-built units (CBUs) fell from 6,100 units in January to just 4,500 in February, according to figures from the General Statistics Office.

Meanwhile, marques such as Toyota, Ford, GM Daewoo, Mercedes-Benz, BMW and Hyundai have all increased their retail prices substantially since the devaluation of the Vietnamese dong against the US dollar last month.

Toyota's sticker prices have risen by VND34-101 million (US$1,619-$4,809), while Ford has hiked prices by VND37-64 million ($1,761-$3,047) and Honda by VND13-32 million ($619,000-$1,523) per vehicle. A buyer of a Honda Accord 3.5 AT, for instance, can now expect to pay VND50 million more.

Tran Kien, a car dealer on Le Van Luong Street in Ha Noi, said auto sales slowed substantially in February. Many automobile dealers were also ceasing imports of new cars with the aim of first selling existing inventories, he said.

The continued rise of the dollar, higher interest rates on consumer loans, and higher VAT and registration fees would add up to a sluggish car market this year, Kien predicted. — VNS

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