Many auto brands and distributors are rushing to open more showrooms in the Vietnamese market out of expectations of a strong rebound into consumption following falling loan rates, and more incentives on taxes in the lead-up to the end of the year.
Auto trading firms have seen opportunities amid the ongoing economic downturn, spending millions of U.S. dollars expanding their auto showroom systems and ramping up distribution channels.
These companies report that the consumption of goods and the demand for products typically surge in anticipation of the Lunar New Year holiday, due in February.
A representative of Motor Image Saigon Company, which is an authorized distributor of Subaru in Vietnam, said that apart from its showroom in Ho Chi Minh City, the firm opened another in Hanoi in early December.
This is one of the largest Subaru showrooms in Hanoi. It can house up to six different Subaru auto models.
Besides, the Subaru distributor is set to inaugurate a 3,500-square-meter showroom in Bac Tu Liem District, Hanoi in the second quarter of 2024.
Also, to serve customers before the year-end holiday, an auto showroom of Land Rover, a British car brand, was put into operation in August.
Similarly, other local car distributors such as Haxaco, City Auto, and Savico are racing to inject money into their showroom systems nationwide.
Aside from trading Mercedes - Benz autos, Haxaco distributes MG cars.
The firm has passed a plan allowing its subsidiary to add two MG stores in northern Bac Giang Province, and Can Tho City southern Vietnam.
The two auto shops, slated for operation in early 2024, will have 100 workers each and are expected to sell 1,000 units a year.
Haxaco revealed that its distribution expansion plan will cost over VND25 billion (US$1.03 million).
Meanwhile, City Auto, a distributor of Ford and Hyundai, is planning to open six more showrooms to expand its system to 15 auto shops in Ho Chi Minh City, Binh Duong, Tien Giang, Phu Yen, and Binh Phuoc Provinces by 2025.
Multiple auto trading firms believe that the demand for cars will bounce back for the rest of the year due to lower lending rates and preferential policies on taxes.
Commercial banks will continue to lower lending interest to encourage customers to get consumer loans.
In late June, the national government issued a decree to extend a 50-percent reduction in registration fees for locally manufactured and assembled automobiles until the end of December, which might beef up sales of Hyundai, Kia, VinFast, and Peugeot cars.
Many automakers and distributors have started to revise down prices of multiple car models before the end of the year to stimulate consumption.
The Subaru Forester is priced at VND869-929 million ($35,690-38,150) each, down VND220-270 million ($9,036-1,088) each.
Honda Vietnam is applying a 50-percent registration fee reduction program to all models.
The price of the Hyundai Santa Fe manufactured in 2022 has dropped by VND210 million ($8,630).