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Toyota Motor Vietnam: The output of cars increased approximately 4% over the same period

Tuesday, 22/05/2018

Since the beginning of the year, Toyota Vietnam has produced over 12,500 cars, imported nearly 600 vehicles and contributed VND 2,630 billion to the State budget (reducing VND 512 billion over the last same period). The output of the domestic production car increased 470 car (up 3.75% compared to the same period), but mainly increased in the low cylinder capacity car, while the high cylinder capacity car decreased. The reason due to since 2018, the excise tax rate for car with the cylinder capacity of 1.5 or less has decreased from 40% to 35% and the car with the cylinder capacity from 1.5 to 2.0 has decreased from 45% to 40%.

On the other hand, the consumption structure of domestically produced vehicle is likely to change, from the high cylinder capacity to the lower one. In addition, the price of car has decreased, causing the limited domestic production due to the import tax rate from ASEAN countries reduced to 0%, automobile manufacturers tend to shift from production to import of the high cylinder capacity cars (from 2.0 upwards) with the advantages compared to the domestic ones, the average tax rate on a car domestically manufactured by Toyota Viet Nam also reduces.

In 2018, the demand for cars is expected to further increase. Theoretically, the import tax will be reduced to 0% that will affect to the price of car imported from ASEAN, "the prospect" of automobile massively discounting may occur, the consumer's purchasing power will be up. While cars imported from ASEAN countries are still looking for opportunities to compete with the locally produced and assembled automobiles under the roadmap of the ASEAN Trade in Goods Agreement, the domestic car manufacturers and assemblers need to have the appropriate strategies to provide the market the cars with the competitive price and quality, contributing to increase the automobile consumption in the domestic market.

Vinh Phuc News

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