Abundant supply, sharp drop in demand

Entering early February 2024, the Vietnamese automobile market witnessed opposite fluctuations compared to the previous period. First of all, the policy of reducing 50% of registration fees for domestically assembled cars officially expired after December 31, 2023. To "welcome" the policy, a large number of users rushed to shop before the government's incentives ended.

After the policy of reducing 50% of registration fees for domestically assembled cars officially expired after December 31, 2023, car manufacturers immediately launched promotional programs, including: Discounts on sales prices, free registration fees (cash deduction), free accessories with the car, or free insurance premiums... to stimulate sales in the month before Tet - the busiest shopping time and also often records the biggest sales breakthrough of the year for all brands in general, regardless of popular or luxury cars. Promotional levels range from tens to hundreds of millions of VND depending on the model, car manufacturer and year of manufacture.

According to Ms. Vu Thi Bao Yen - Honda sales staff, the ability to close a sales contract decreased sharply in the first week of February 2024. The number of cars available at the dealership is very abundant. Even many car models with VIN code (manufactured year) 2023 are discounted up to tens of millions of VND, but the discount is not as much as when the preferential registration fee policy was still in effect. Many best-selling car models have switched to the VIN 2024 batch, so the promotion level is not much. Therefore, the number of customers visiting the showroom is also completely absent.

After the policy of reducing 50% of registration fees for domestically assembled cars officially expired after December 31, 2023, car companies immediately launched promotional programs.

In contrast to the price reductions, the market also recorded a few "best-selling" car models with unexpectedly increasing prices, ranging from several tens to nearly hundreds of millions of VND. However, the number of car hunters has also decreased significantly since entering 2024.

Mr. Doan Anh Dung, an expert in monitoring the automobile market, said that this is the "closing time" for buying and selling. Because the preferential policies from the Government have ended. The "falling point" of the market has almost passed. For new cars, dealers have begun to switch to a waiting state for post-Tet discount promotions from manufacturers - months that always record sharp declines in sales.

Meanwhile, for used cars, most of the stores are in a state of "empty houses and gardens", meaning they have sold all their remaining inventory and stopped importing new ones. The year 2023 is recorded by the used car business community as having a very big fluctuation; so basically, the owners do not dare to "hold on to goods" near Tet like every year.

The number of car hunters has also decreased significantly by 2024.

For consumers, this is no longer the right time to buy cars. Because even if the contract is signed and the car is received immediately, it will be difficult for customers to complete the administrative procedures before Tet. Meanwhile, after Tet, the demand for cars will increase sharply, serving spring travel, visiting or inter-provincial holidays. Driving without full vehicle documents is also very risky.

Meanwhile, if needed, users can completely choose the solution of renting a car for a long time 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 beneficial in terms of economics .

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