Auto firms focus on small, fuel-efficient cars

Local automakers and auto importers are aiming to bring small size and energy-saving cars to the local market to suit new conditions of higher oil prices and more crowded urban areas.

Petroleum price continuing to increase, and big cities like HCM City, Hanoi, Hai Phong and Danang having become narrower for drivers are parts of reasons why auto firms now start to focus on small and energy-saving cars, experts said.

Toyota Vietnam (TMV) and Ford Vietnam are pinning high hope on the small car segment, and recently have officially launched small cars into the local market.

Toyota Vietnam in March launched the five-seat hatchback Yaris car imported from neighbouring Thailand. Targeting young customers, Yaris with a small engine is said to have outstanding fuel efficiency and environment protection meeting the euro 3 standard.

Toyota Yaris is equipped with a 1.5 litre engine, which consumes 4.3 litres per 100km on combined road. The compact car is distributed as a completely built-up vehicle imported from Thailand in TMV’s dealer network nationwide at a price of 658 million dong per unit, including VAT.

TMV targets to sell 120 Yaris cars per month, considering that sales of this small car in Vietnam since 2007 have totalled over 6,000 units by end-2010.

Akito Tachibana, president of TMV, said at the launching ceremony in HCM City that the import of the new car was to survey the local market only, and that this car would be assembled in Vietnam when 500 units are consumed in the local market each month.

Meanwhile, Ford has taken another approach by assembling its compact car Fieasta in Vietnam, which is expected to help raise its competitiveness. With prices ranging from 542 million dong to 606 million dong, Fiesta attracted more than 300 Vietnamese customers who have already registered to buy the car, after a month the company announced prices of the unit.

Staffs of Ford Vietnam are working hard at its Hai Duong plant to start delivering its first all-new Fiesta to local customers this week, according to the company.

“The new Fiesta will set a new standard for small cars in Vietnam, with its – fuel efficiency and smart technology,” said Laurent Charpentier, Ford Vietnam’s managing director, adding that: “We are absolutely confident in the Fiesta’s success in Vietnam.”

Meanwhile, Mazda in early March re-entered the Vietnamese market through a recently-appointed distributor, VinaMazda. The first model has been offered in the local market with its very popular small car Mazda2 that targets those customers who prefer small and fuel-efficient vehicles.

In Vietnam, the hatchback comes with a 1.5-litre DOHC petrol engine, and either a five-speed manual or a four-speed automatic transmission.

The Mazda2 is imported as a completely built-up (CBU) unit from Japan, and has a price at 629 million dong for the manual and 660 million dong for the automatic variant.

According to auto experts, the small car segment recently attracted Vietnamese customers. For example, Vios of Toyota Vietnam equipped with a 1.5 litre engine using VVT-i technology has become one of the four best sellers of Vietnam Automobile Manufactures’ Association (VAMA) in the first three months of this year with more than 1,500 units sold.

Meanwhile, Kia Morning, a small car assembled by Truong Hai Auto Joint Stock Co., has become the 7th best seller of VAMA in the first three months this year with more than 810 units sold.

Experts said that, many auto companies in the country now prefer to import cars, especially from Asean, to enjoy low tariffs.

Under the Asean Free Trade Agreement commitments, Vietnam will have to gradually cut the tariffs on cars imported from Asean countries to zero by 2018. The tax rate at 70 percent in 2011 will be cut gradually every year to 15 percent by 2015.

Almost all local auto makers like Toyota Vietnam, Honda Vietnam, Mercedes-Benz and Ford Vietnam all have got the license to import cars under the mode of complete built unit (CBU) to sell domestically. – SGT

Tags: fuel-efficient cars, Vietnam automotive, Vietnam automotive industry, Vietnam autos market