Low-cost Indian cars not expected to be sold well in Vietnam
Low-cost Indian cars not expected to be sold well in Vietnam
Analysts don’t think Tata Nano, the cheapest car model from India, would sell well in Vietnam, saying that though Vietnam is a poor country, its people only accept luxury products.
Tata, India’s largest automobile group, has signed a cooperation agreement with Vietnamese TMT JSC under which TMT will begin distributing Tata’s products in Vietnam from August, including Tata Nano, introduced worldwide 2009 as the cheapest car model, priced at US$2,500-5,000.
TMT’s chair Bui Van Huu said Tata Nano would be sold at below US$10,000 in Vietnam, price much lower than that of domestically assembled cars and imports.
Despite the expected low selling price, car dealers said they don’t think Tata Nano will sell in Vietnam.
“Tata Nano won’t sell. Vietnamese won’t buy it even though it is cheap. Chinese cars and motorbikes once penetrated the Vietnamese market, but they have gone,” said Tam from Nhat Han Auto Showroom on Nguyen Van Huyen Street in Hanoi.
“Vietnamese favor foreign branded products. They only spend money on high-quality products,” he said, adding that Vietnamese have low income but don’t accept low-cost cars, because they believe the cheapest are the lowest quality.
Chu Manh Hung from Hyundai Pham Hung noted that the price of Tata Nano remains questionable in Vietnam.
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