Auto brands bring down prices to spur demand

South Korean automaker Hyundai last month launched the 2024 MPV Stargazer at prices starting at VND489 million, down 15% from the previous 2022 model.

But it boasts more advanced technology with wireless charging for smartphones, electronic brakes, forward collision waring, and lane assist.

Japanese brand Toyota announced a 4.6% cut in the prices of its 2024 Corolla Cross SUV to VD820 million ($32,200).

It has received many new upgrades in technology and safety systems including a larger entertainment monitor and reverse brake assist.

German auto brand Volkswagen is selling its special edition of the SUV Teramont starting at VND2.5 billion, down 12% from the 2021 version.

Mazda, assembled in Vietnam by Thaco, is selling its CX-5 at VND749 million, down 10% from the previous model.

"The key is to claim more market share," the manager of a Japanese auto dealership in HCMC said to explain why prices are being lowered.

"Amid a slow market, customers prefer affordable products. Prices determine the number of buyers."

Other industry insiders said by lowering prices companies are able to reduce their inventories, thus cutting storage costs. Higher sales also mean they are able to pay their bank loans faster.

Last year auto sales plummeted by 25% to 369,400 units with most brands suffering double-digit declines.

In the first quarter this year the Vietnam Automobile Manufacturers Association posted a decline of 18% to 58,200 units.