Car dealers face stronger competition
Car dealers face stronger competition
Car dealers have begun adjusting their sales and promotion plans amid lower purchasing power and rising business competition.
Major car dealers Kia, Hyundai, Toyota, Isuzu, Ford and Chevrolet have introduced a range of sale promotions, ranging from slashing prices and offering low-interest car loans to giving gifts to customers and running lucky draw competitions.
Korean vehicle company Kolao has recently advertised a 0.75 percent monthly interest rates on vehicle loans, down from 0.85 percent, indicating the company is facing greater competition.
Kolao also only asks buyers for a 10 percent deposit, dropping from 30 percent in the past, allowing customers with a low but sustainable income to purchase a vehicle over an extended period.
Toyota dealers have dropped the price of Vigo pickups and Fortuner SUVs while also offering lucky draw competitions with vast arrays of prizes.
Ford is offering low monthly interest rates of 0.69 percent while Chevrolet dealers are handing out fuel coupons to people who purchase their cars.
Economist Dr Mana Southichak said increasing business competition was forcing car dealers to introduce attractive sales promotions, which will benefit consumers who are looking for cheaper cars as well as offering more choice as prices continue to drop.
He said despite the lower interest rates on offer, Lao rates were still higher than those in neighbouring countries like Thailand.
Dr Mana said there was still room for dealers to further lower car prices in the future.
Demand for cars has begun to drop in Laos, with more than a million vehicles now running in a country of just 6.5 million people. Recent competition among car dealerships is likely a result of the continued large inflow of cars into the country despite slackening demand.
The government's decision to tighten expenditure resulting in less development projects has further lowered demand as state employees have also had their living allowances cut, reducing the purchasing power of the sizable civil service.
vientiane times
