Taxes dampen used car imports

HA NOI —

Only 199 secondhand cars were imported in the period, a fall of more than 70 per cent over the same month last year.

Of the total figure, around 170 units were low-end vehicles, selling at $3,600-$4,000 each; 30 luxury cars, such as Audi, Lexus, Mercedes and BMW, sold for $20,000-$73,000, most of which came into the country before the new tax rate became effective on August 15.

From that date, 1.0 litre passenger cars with less than 10 seats are being taxed $3,500 while those up to 1.5 litres $8,000; passenger cars with 10-15 seats and of 2.0 litre capacity, less $9,500; cars 2.0-3.0 litres $13,000; larger than 3.0 litres $17,000.

Used-car dealers were prepared for the drop off in sales, said a staff member of an auto showroom in Lang Ha Street, Ha Noi.

His company had not imported used-cars since August 15.

"We imported a large number before, so we'll sell what we have and wait for the Government to sort things out," he said.

Companies have been permitted to import used-cars since May 2006. At first around 10,000 units were imported in 2006-2007, of which 50 per cent were luxury cars while the rest were vehicles which could not be produced locally, such as the Toyota Sienna, the Honda Odyssey, the Nissan Quest and the Murano.

Among other developments in the motor industry, Viet Nam Daewoo Motor Co has been changed its name to GM Viet Nam Co (GM Viet Nam).

The company said in a press release that GM Viet Nam would make Chevrolet its retail brand. At least three Chevrolet products were scheduled to be launched in Viet Nam later this year with a focus on mini cars.

GM Viet Nam currently ranked third in the automotive industry, accounting for 6.6 per cent of the total market share in Viet Nam.

Meanwhile, BMW Euro Auto said in a press release its sales had increased in the first eight months of this year, proving Viet Nam was one of the leading growth markets in the region. — VNS