The prices of automobiles in Vietnam have been continuously increasing in the wake of the COVID-19 pandemic due to a dearth of auto parts.
Many Peugeot car models manufactured and assembled by Vietnam’s Truong Hai Auto Corporation (THACO) will see price hikes of VND20-40 million (US$854-1,709) beginning in September.
This is not the first time THACO has increased the prices of its products since the pandemic was put under control.
The cost of other models assembled by THACO, such as the Kia Sonet and Kia Seltos, also jumped by tens of millions of dong. (VND10 million = $427)
Despite the price hikes, many buyers are on three-to-six-month waiting lists for their new cars.
Toyota Vietnam hiked the listed prices of its two best-selling MPV (multi-purpose vehicle) models Avanza and Veloz by VND10 million ($427) in early August.
The Toyota Avanza series now sells for VND558-598 million ($23,800-25,500), while the Toyota Veloz costs VND658-698 million ($28,100-29,800).
Some other car manufacturers have not raised the prices of their base models, but have elevated the rates on accessories and rush orders.
Businesses attributed the price spike to supply chain disruptions and the surging cost of imported auto parts and components.
Even spare parts at local repair agents have also become more expensive.
Thanh Long, owner of such a facility in Thu Duc City under Ho Chi Minh City, confirmed that the prices of spare and replacement parts such as tires and engine oil have climbed 10-20 percent compared to last year.
Regarding replacement parts that need to be imported from other countries, customers have to wait for at least a month, Long elaborated.
Nguyen Minh Dong, an auto expert, believed that the supply of imported auto parts may not be stable until next year because many car manufacturers depend on suppliers in China.
The shortage of car components will only be solved when China fully reopens its borders, Dong stated.