Supply is abundant, demand has dropped sharply.

Entering the beginning of February 2024, the Vietnamese automotive market witnessed fluctuations contrasting with the preceding period. First, the policy of a 50% reduction in registration fees for domestically assembled vehicles officially expired after December 31, 2023. To take advantage of this policy, a large number of consumers rushed to make purchases before the government's incentive ended.

After the policy of reducing registration fees by 50% for domestically assembled vehicles officially expired after December 31, 2023, car manufacturers quickly launched promotional programs, including: price reductions, waivers of registration fees (cash deductions), free accessories, or free insurance... to stimulate sales in the month leading up to Tet (Lunar New Year) - the busiest shopping season and usually the time of year with the highest sales figures for all brands, regardless of whether they are mainstream or luxury cars. The promotional discounts range from tens to hundreds of millions of VND depending on the model, brand, and year of manufacture.

According to Ms. Vu Thi Bao Yen, a Honda sales representative, the likelihood of closing sales contracts dropped sharply in the first week of February 2024. The number of vehicles available at dealerships is abundant. Many models with 2023 VIN (year of manufacture) are even discounted by tens of millions of VND, but the discounts are still less than during the period when the preferential registration fee policy was in effect. Many best-selling models have switched to the 2024 VIN batch, so the promotions are not as significant. Therefore, the number of customers visiting showrooms has also decreased considerably.

After the policy of reducing registration fees by 50% for domestically assembled vehicles officially expired on December 31, 2023, car manufacturers immediately launched promotional programs.

In contrast to the price reductions, the market also saw some popular car models unexpectedly adjust their prices upwards, by tens to nearly a hundred million dong. However, the number of car buyers has significantly decreased as we enter 2024.

According to Mr. Doan Anh Dung, an expert monitoring the automotive market, this is the "closing time" for buying and selling. This is because the government 's preferential policies have ended. The market's "peak" has almost passed. For new cars, dealerships have begun to wait for post-Tet (Lunar New Year) discount promotions from manufacturers – months that always see a sharp drop in sales.

Meanwhile, for used cars, most dealerships are practically empty, meaning they've sold off their remaining stock and stopped importing new vehicles. The year 2023 was noted by the used car business as a year of significant fluctuations; therefore, dealers are generally hesitant to stock up aggressively close to Tet (Lunar New Year) as they did in previous years.

The number of car buyers has also decreased significantly since entering 2024.

For consumers, this is no longer an ideal time to buy a car. Even if a contract is finalized and the car is delivered immediately, customers will likely struggle to complete all the necessary administrative procedures before Tet (Lunar New Year). Meanwhile, demand for cars will increase sharply after Tet, serving travel, visits, and inter-provincial pilgrimages. Driving without complete vehicle documents is also very risky.

Meanwhile, if needed, users can choose to rent a car for an extended period to use temporarily during Tet and wait for promotional programs and discounts to stimulate demand at the beginning of the Lunar New Year - which will be much more advantageous from an economic perspective.

Source: https://vietnamnet.vn/thi-truong-o-to-dip-gan-tet-nguyen-dan-cung-doi-dao-cau-giam-manh-2247705.html