The Auto Industry Drives Forward with Attractive Deals During the Ghost Month

The automotive market, encompassing both new and used vehicles, has experienced a downturn this year due to various factors. As we entered the seventh month of the lunar calendar, this trend persisted, with many customers adopting a cautious approach and refraining from investing in or purchasing high-value assets.

A slew of incentives from automotive brands

To counter the sluggish market, as per usual, automotive brands and dealerships have had to step up their incentive programs and offer price reductions to stimulate consumer demand, especially for models that have been struggling to attract customers.

“We still have customers coming in to browse, but the conversion rate of turning these visits into actual sales is low. Most people are still in the exploration phase and prefer to make their decisions next month.” shared Thanh Tuan, a sales executive at the Hyundai showroom on Pham Van Dong street. According to Tuan, not only his brand but also numerous other automotive brands are offering a range of incentives, including significant price reductions for car buyers during this month. These incentives include waiving 50% to 100% of the registration fee, providing 100% bank financing for car purchases, and offering fixed-rate interest subsidies. Despite these efforts, the demand for automobiles remains subdued.

Specifically, in August 2024, Honda Vietnam continued its familiar strategy of offering incentives worth up to over 200 million VND for most of its automotive products. The Honda City is currently enjoying substantial benefits, including a 100% waiver of the registration fee for the L and G versions. The top-of-the-line RS version receives a 50% discount on the registration fee, along with a one-year free body insurance gift. Additionally, Honda Vietnam is offering a 100% waiver on the registration fee for the G version of the Honda CR-V SUV, equivalent to a 10% registration fee, resulting in a starting price of below 1 billion VND. For the Honda Accord, a D-segment sedan, the company is offering a direct cash discount of 220 million VND, bringing the new price to 1.099 – 1.109 billion VND.

Honda offers attractive promotions to entice buyers

For the brand Mitsubishi, during August, the Japanese automaker is supporting a 100% registration fee waiver for the Mitsubishi Pajero Sport Diesel 4×2 AT and 4×4 AT versions, resulting in promotional values of 113 million and 136.5 million VND, respectively. Buyers of this D-segment SUV will also receive a two-year free physical insurance package (worth over 30 million VND) and two to three years of free maintenance.

Subaru, meanwhile, is offering promotions worth over 100 million VND for the iL EyeSight and iS EyeSight versions of the Forester during August. Specifically, the cash equivalent value of the promotion for the Forester 2.0 iL EyeSight is 110 million VND, while the iS EyeSight version receives a 100% registration fee support, equivalent to 140 million VND. The Forester iL version is discounted by 50 million VND. All of these models are 2024 productions.

Subaru’s August 2024 price list is as follows: The Subaru WRX 2.4 MT is priced at 1.999 billion VND, the 2.4 CVT EyeSight version is 2.049 billion VND, the Wagon 2.4 CVT GT-S EyeSight is 2.029 billion VND, and the Wagon 2.4 S EyeSight is 2.079 billion VND. The 2023 Subaru Outback is offered at 2.099 billion VND, while the Subaru BRZ is priced at 1.899 billion VND. The Subaru Forester, with its three versions, 2.0 i-L, 2.0 i-L EyeSight, and 2.0 i-S EyeSight, is available at 969 million VND, 1.099 billion VND, and 1.199 billion VND, respectively.

During August 2024, Skoda also introduced cash incentives for its two SUV lines, the Karoq and Kodiaq. Specifically, the Skoda Karoq Style and Ambition versions were reduced by 80 million and 110 million VND, respectively. Meanwhile, the Skoda Kodiaq Style and Ambition versions saw price cuts of 50 million and 130 million VND, respectively. Additionally, customers who purchase these vehicles will receive complimentary genuine accessories, physical insurance, an extended warranty from three to five years, and civil liability coverage. However, these promotions cannot be converted into cash.

Since its introduction in the Vietnamese market, the Volkswagen T-Cross has been consistently offered with significant price reductions of up to hundreds of millions of VND. However, given the current subdued atmosphere in the Vietnamese automotive market, a dealership is now offering the T-Cross with a bottom-touching discount of 300 million VND for the Luxury version, bringing the price down from 1.299 billion VND to 999 million VND. The standard Elegance variant is discounted by 220 million VND, from 1.099 billion VND to 879 million VND.

Despite the deep discounts, the post-promotion price of the Volkswagen T-Cross remains on par with C-segment SUVs such as the Mazda CX-5 (priced from 749-979 million VND) or the Hyundai Tucson (priced from 769-919 million VND). Apart from being imported fully built-up from India, the high price of the Volkswagen T-Cross is also due to the brand’s positioning in the upper-middle range.

Subaru also introduces attractive packages

Should we change our mindset about car purchases during the “ghost month”?

Thanh Tuan, a seasoned automotive industry veteran, shared his perspective: “During the ‘Ngau’ month, with significant discounts and incentives offered by many automotive brands, customers stand to benefit the most. According to Tuan, when the car market faces challenges, and sales volumes drop, resulting in high inventory levels, and this situation overlaps with the ‘Ngau’ month, automakers tend to introduce attractive promotions for most of their models. Additionally, purchasing a car during the seventh lunar month can be more relaxed and cost-effective. As the Lunar New Year approaches, the demand for automobiles surges, leading to price hikes, a lack of promotions, and even pressure to purchase additional accessories. Not to mention the hassle of tax payments and lengthy registration processes. Many people view this quiet period as a necessary breather, allowing both buyers and sellers to prepare for the busier period towards the end of the year.

Echoing this sentiment, several automotive business experts anticipate a boost in the automotive market as the government has agreed to reduce the registration fee by 50% for domestically assembled vehicles. Although this measure will only be in effect for three months instead of the initially proposed six months, it is expected to significantly stimulate the automotive market, especially during the year-end period when many Vietnamese families consider purchasing automobiles.