Taxes Dampen Used Car Imports in Vietnam

Used-car imports plummeted up to 70 per cent in August due to taxes being increased to US$3,000-US$17,000 per vehicle depending on the size, Vietnam News Agency reports.
Only 199 secondhand cars were imported in the period, a fall of more than 70 per cent over the same month last year.

The total figure included around 170 low-end vehicles, selling at US$3,600-US$4,000 each, and 30 luxury cars, such as Audi, Lexus, Mercedes and BMW, sold for US$20,000-US$73,000 each. Most of these came into the country before the new tax rate became effective on Aug 15.

Since that date, 1.0 litre passenger cars with less than 10 seats are taxed US$3,500 while those up to 1.5 litres US$8,000; passenger cars with 10-15 seats and of 2.0 litre capacity, US$9,500; cars of 2.0-3.0 litres, US$13,000; and larger than 3.0 litres, US$17,000.

Used-car dealers were prepared for the drop in sales, said a staff member of an auto showroom in Lang Ha street, Hanoi. His company had not imported used-cars since Aug 15.

“We imported a large number before, so we’ll sell what we have and wait for the Government to sort things out,” he said.

Companies have been permitted to import used cars since May 2006. At first around 10,000 units were imported in 2006-2007, of which 50 per cent were luxury cars while the rest were vehicles which could not be produced locally, such as the Toyota Sienna, the Honda Odyssey, the Nissan Quest and the Murano.

Among other developments in the motor industry, Vietnam Daewoo Motor Co has changed its name to GM Vietnam Co (GM Vietnam).

The company said in a press release that GM Vietnam would make Chevrolet its retail brand. At least three Chevrolet products are scheduled to be launched in Vietnam later this year with a focus on mini cars.

GM Vietnam currently ranks third in the automotive industry, accounting for 6.6 per cent of the total market share in Vietnam.

Meanwhile, BMW Euro Auto said in a press release its sales had increased in the first eight months of this year, proving Vietnam is one of the leading growth markets in the region.

Tags: Vietnam automotive, Vietnam automotive industry, Vietnam autos market, Vietnam car imports