Automobile market goes into neutral

HCM City (VNA) - The automobile market has come to a standstill, and is expected to be dormant in the remaining months, according to spokesmen for several HCM City car dealerships. Reported sales dropped sharply last month.

Many blame the increase of registration fees for cars with less than 10
seats from 5 percent to 10-15 percent of the purchasing price starting
August 25.

No cars have been sold at GM Company in HCM City since August 25,
said Phung Van Minh, a sales representative. Even the Vivant and Captiva
brands are unmarketable now.

Toyota has come out with the Altis model, and will show off its new Innova
this September, according to Le Thuy Hang, sales representative of Toyota
in HCM City .

"But we've gotten no response from potential buyers despite a big marketing
push" Hang said.

In the past two months, the volume of imported cars fell by 90 percent over
the same period last year, according to the HCM City Customs Office.

Sai Gon Port Zone 3, for example, imported only 58 cars. Cat Lai Port
imported 38 cars while Tan (New) Port imported eight.

This is an 82.4 percent drop from July, said Tong Le Dan, deputy head of the
Customs Office of Sai Gon Port Zone 1.

With banks cutting off credit, the market turning sour and import taxes
going up, businesses do not want to pay for customs clearance, and leave
their imported cars at port.

More than 40 cars are waiting for customs clearance at Sai Gon Port Zone 4,
according to Nguyen Van Lam, chief supervisor.

It is unknown when the market will heat up again as banks tightened lending
at the central bank's request, said Do Thien, owner of a car dealership in
District 1.

Customers are also waiting to see if the consumption tax on cars will go up,
he added.

"The days of people leaving a deposit a year in advance to buy their own car
are over," Thien said.-Enditem