Ho Chi Minh City’s new, used car markets dampened amid weak demand
Ho Chi Minh City’s new, used car markets dampened amid weak demand
The auto market in Ho Chi Minh City is seeing a significant slowdown ahead of Tet (Vietnamese Lunar New Year), with new car sales declining while the used car market is nearly frozen, leaving many sellers struggling to find buyers despite deep price cuts.
A car showroom in Ho Chi Minh City. Photo: Que An / Tuoi Tre |
On Wednesday, showrooms across the city reported a noticeable lack of activity.
At a Hyundai showroom in District 12, new cars lined the lot, unsold.
Sales representatives offered detailed explanations of promotions, with discounts ranging from tens to hundreds of millions of Vietnamese dong, depending on the model and production year. (VND10 million = US$398)
Nguyen Xuan, a salesperson at the Hyundai showroom in District 12, shared that after the Vietnamese government’s 50-percent registration fee reduction for domestically assembled cars ended in late 2024, automakers ramped up incentives to attract buyers but sales have remained sluggish.
"Even with good deals, customers are mainly window-shopping," Xuan said.
"From now until after Tet, it is unlikely we'll make many sales.”
Business is similarly slow at a Honda showroom in Thu Duc City, where some 2024 models are being heavily discounted to clear inventory, but newer, high-demand models have minimal promotions, leading to a further dip in foot traffic.
“The first week of January 2025 saw a sharp decline in closed deals,” said Thanh Hien, a salesperson at the Honda showroom.
The used car market in the country is in an even tougher spot.
Streets known for second-hand car dealerships, like Cong Hoa Street in Tan Binh District and National Highway 13 in Thu Duc City, see little to no foot traffic.
Some dealers told Tuoi Tre (Youth) newspaper that prices for used cars have dropped 20-30 percent compared to just a few months ago, yet the demand remains sluggish.
Bui Thanh Hau, owner of a used car dealership in Thu Duc, said that during the same period last year, the store sold one or two cars daily and up to five on busy days.
“But this year, not a single car has been sold for an entire week,” Hau added.
Popular models such as the 2020 Toyota Vios and 2022 Toyota Veloz have seen prices drop to VND380 million ($15,120) and VND530 million ($21,090), respectively, but they are still struggling to find buyers, according to Nguyen Thi Hien, owner of a dealership specializing in Toyota models in the southern hub.
Hien explained that most customers buying used cars aim to use them for both personal and ride-hailing purposes.
However, rising fines for traffic violations and increasing operating costs have discouraged potential buyers.
Some individuals are even selling their cars to cut expenses, further reducing demand in the used car segment.
