Thai car manufacturers eye Vietnamese market this year

Friday, Mar 27, 2015 14:11

The domestic car import market is predicted to keep growing this year.  — Photo

HA NOI (Biz Hub) — Cars made in Thailand are expected to flood Viet Nam in the future as their sales have been increasing in the domestic market in recent times, reports online

Site At the Bangkok Motor Show 2015 held recently, Thai automobile makers introduced about 10 models that will be exported to Viet Nam this year. Four of the models that are likely to attract Vietnamese consumers are Honda HR-V, Mazda 2, Ford Ranger and Ford Everest.

In Thailand, Honda HR-V costs THB890,000 (US$27,312) to THB975,000 ($29,921). It's expected to be introduced in Viet Nam by the end of this year. At first, it will be exported as a completely built unit (CBU). Meanwhile, Mazda 2 will enter the domestic market with two versions of High and High Plus. Their price tags are THB610,000 ($18,713) and THB665,000 ($20,399) respectively.

With large units that can be used for long trips, Ford's new Ranger and Everest models are expected to attract Vietnamese customers.

Ford Ranger is one of the pick-ups that leads the market in terms of revenue in Viet Nam. Three Ranger models will be introduced in the country by the end of this year.

Meanwhile, the new SUV 7 model, with a sun roof, has three versions that cost between THB1.269 million ($38,939) and THB1.599 million ($40,063).

According to Ford Asia Pacific's Marketing, Sales and Service (MSS) Vice President Brett Wheatley, the growth in Viet Nam's automobile market in 2014 ranked second in Ford's global market. As the growth has just begun, the firm believes in this potential market.

At present, the country's development policies for automobile manufacturing are not enough to allow auto makers to boost investment in this area. Meanwhile, the import tax of CBUs from ASEAN nations have been reducing to touch zero per cent by 2018 under the ASEAN Trade in Goods Agreement (ATIGA). Therefore, by this time, the best way to occupy the market is by importing cars.

As the automobile market in Thailand has been declining, auto makers are trying to develop exports to the ASEAN countries. Several auto firms in Thailand have business sections that specialise in supervising auto exports to Cambodia, Laos, Myanmar and Viet Nam. The sections are responsible for studying the market and policies to give advice to the firms' leaders for boosting exports.

Brett Wheatley said two products would be majorly exported to Viet Nam in the future. They were small sedans for urban areas and large cars for long and heavy terrain roads. The new models will have new features and modern conveniences, meeting the customers' increasing demand. The prices will be more competitive.

Along with the reduction of import taxes that will make cars cheaper, the firms have announced that they will optimise production costs to offer the best prices to the customers.

A report by the General Statistics Office said Viet Nam spent US$133 million on importing 5,493 CBU cars last month, an increase of 86 per cent in volume and 160 per cent in value compared with the same period last year. — VNS

Comments (0)