Toyota hikes prices in Vietnamese market

Friday, Oct 02, 2015 16:34

The Lexus LS460L is the most expensive with a new price of more than VND5.8 billion, an increase of VND225 million (10,000), as compared with the old price.— Photo

HA NOI (Biz Hub) — The prices of Toyota and Lexus models in the Vietnamese market have been increased as of October 1, Toyota Motor Vietnam (TMV) said.

The new price, inclusive of value-added tax, is applicable for customers who receive cars after full payment from October 1, Deputy General Manager of the TMV's Public Relations and Corporate Social Responsibility Department Le Thi Huong Diu said.

She said the prices have been increased because of many changing factors that affected the company's production and business operations significantly, especially the exchange rate increase by the State Bank of Viet Nam, which revised the exchange rate band to three per cent from August 19, 2015.

The prices of almost all Toyota units and Lexus models imported and distributed by TMV have been increased.

The price of Camry models has risen by VND44 million to VND55 million (US$1,955 - $2,444) each. The price of Camry 2.5Q has been hiked the most, with the increase of VND55 million to more than VND1.41 billion ($62,666).

Meanwhile, the prices of other best-selling models of the firm such as Corolla Altis, Vios, Innova and Fortuner have all gone up between VND31 million to VND38 million ($1,377-$1,688), VND21 million to VND25 million ($933-$1,111), VND28 million to VND34 million ($1,244-$1,511), and VND37 million to VND57 million ($1,644-$2,533), respectively.

The prices of imported completely built-up units distributed by TMV, such as Prado, Land Cruiser and Hilux, have been kept stable. Meanwhile, the prices of Hiace and Yaris have been increased by VND45 million to VND48 million ($2,000-$2,133) and VND25 million to VND28 million ($1,111-$1,244), respectively.

The prices of Lexus models in the Vietnamese market have been revised, with the increase is between VND72 million and VND225 million ($3,200-$10,000) each. The Lexus LS460L is the most expensive with a new price of more than VND5.8 billion ($257,777), an increase of VND225 million, as compared with the old price.

In fact, the impact of foreign exchange is real and has been pressing on many automakers and distributors because they have to import completely built up units (CBUs) and complete knock-down (CKD) units by the American dollar.

After two months of foreign exchange rate adjustment, TMV is the first and only automaker in Viet Nam to have announced a revision of the prices of its best-selling vehicles.

On the contrary, its business rival, Truong Hai Automobile JSC (Thaco) has launched a promotion programme for Peugeot and many Kia models, despite the foreign exchange rate's impact.

The firm has provided insurance and is offering service vouchers. In fact, customers of Kia's New Sorento, Kia K3 and Kia Rondo could receive incentives worth VND65 million (US$2,888), VND30 million ($1,333) and VND24 million ($1,066), respectively.

Thaco's decision to cut profits to reduce prices, because of market difficulties or problems in supporting customers, is seen as a wise step.

While the two large automakers have gone in opposite directions in their strategies, other firms have not announced any change in prices. However, if the foreign exchange rate continues to remain at a high level, the other automakers will possibly follow the steps of the TMV in revising their prices with the approach of the car-buying season at the end of the year. — VNS

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