Retail News CRM

Tag: car

  • Importers propose halving car registration fees

    Importers propose halving car registration fees

    All 12 members of the Vehicles Importers Vietnam Association (VIVA) have asked the Government to reduce the registration fee on imported cars by 50% to spur demand.

    VIVA proposed in the context of a sharp drop in sales and gloomy market forecasts.

    According to the association, car importers need help to cope with high inventories due to the sudden decrease in demand.

    In the first month of this year, the number of cars imported to Vietnam tripled over the same period last year to more than 12,800 vehicles. The number of imported cars also tripled in the last three months of last year.

    Earlier, the Prime Minister ordered the Ministry of Finance and the Ministry of Industry and Trade to consider lowering registration fees for domestically assembled cars.

    The Vietnam Automobile Manufacturers Association (VAMA) said tightening credit and rising interest rates have diminished market liquidity, and automobile companies are struggling to cope with high inventories.

    According to VAMA, its members reported a decline in sales four months in a row starting last October. Only 17,314 vehicles were sold in January, down 51% from December.

    During the Covid pandemic, Vietnam halved registration fees on domestically assembled vehicles, not on imported ones, twice, first in mid-2020 and then again in late-2021. Each reduction period lasted six months.

    In the first half of 2020, over 102,900 domestically assembled vehicles were registered. The figure then doubled in the second half of the year.

    Lees ook:

    Lees ook:

  • 40% of car buyers in Vietnam depend on loans

    40% of car buyers in Vietnam depend on loans

    Only 30-40% of Vietnamese car buyers resort to bank loans compared to some 80% in developed countries.

    The rates vary by geographical region, with automobile firms saying more customers in the south borrow than in the north.

    Vinh Nam, sales manager of Vietnam Star, a Mercedes dealer in Binh Duong Province, said generally southerners are bigger spenders than people elsewhere.

    A large number of buyers in the south are businesspeople or buy vehicles for businesses, and so their purchase decision is faster.

    According to salespeople, the ease of borrowing and paying interest to buy a car is the main factor affecting the purchase decision.

    Car loan interest rates are volatile and currently start at around 8.5%.

    Banks lend 70-80%, even 100%, of the car’s value, but many borrowers cannot repay in time, and this is one reason why many people are hesitant about borrowing, according to banking and car sales executives.

    Analysts expect borrowing to decrease this year because of credit tightening and high-interest rates.

    To stimulate demand, automobile firms are offering discounts and promotions, and even subsidizing interest.

    Last month Volkswagen unveiled a promotion program offering 0% interest for the first six months.

    “Sales are very slow, so we have to adjust,” Thao Van, head of marketing at Volkswagen Vietnam, said.

    Analysts do not expect sales this year to reach last year’s half a million units.

    The Vietnam Automobile Manufacturers Association said its members reported a decline in sales for four months in a row starting last October. Only 17,314 vehicles were sold in January, down 51% from December.

    Lees ook:

  • Vietnam to lower car registration fee to boost sales

    Vietnam to lower car registration fee to boost sales

    The Government has asked the finance and industry ministries to consider reducing car registration fee and extend the payment schedule for special consumption taxes on domestically assembled vehicles.

    The ministries will submit a report on the two newly proposed policies to the Prime Minister before March 20.

    The request was made as automakers are warning of a slump in the automobile market this year due to low demand and high-interest rates.

    Insiders have said the local automobile prospects this year might be as gloomy as the Covid period.

    Experts have predicted that total vehicle sales this year will unlikely reach last year’s figure of half a million units.

    Industry associations and localities have recently been asking the Government to extend the payment schedule for special consumption taxes, and to halve registration fees on domestically assembled vehicles to stimulate demand.

    The Vietnam Automobile Manufacturers Association (VAMA) said credit tightening and rising interest rates have diminished market liquidity, and automobile companies are struggling to cope with high inventories.

    VAMA said its members reported a decline in sales four months in a row starting last October. Only 17,314 vehicles were sold in January, down 51% from December.

    The Vietnam Association of Mechanical Industries has reported that the drop in vehicle consumption has led to a decrease in production orders for supporting industries like mechanics, tools and parts.

    During the Covid pandemic, Vietnam halved registration fees on domestically assembled vehicles twice, first in mid-2020 and then again in late-2021. Each reduction period lasted six months.

    In the first half of 2020, over 102,900 domestically assembled vehicle.

    Lees ook:

  • Mercedes recalls 492 faulty cars in Vietnam

    Mercedes recalls 492 faulty cars in Vietnam

    Mercedes Vietnam announced it would recall 492 ML and GLE cars sold in Vietnam beginning March 15 to fix inconsistent design features and repair errors in the spare wheel compartment.

    The affected SUVs were manufactured and imported between February 2012 and October 2019.

    German luxury vehicle company Mercedes recalls ML and GLE SUVs in many countries, including Vietnam, because of concerns that water could collect in the spare tire wheel compartment, leading to a possible fuel pump malfunction and subsequent engine stalls without prior warning.

    This increases the risk of accidents and injuries for other road users.

    To fix the problems, Mercedes Vietnam dealerships will inspect the vehicles for any damage, install a water drain plug in the spare tire well, and replace the fuel pump if necessary.

    The company reported that such repairs should only take about 30 minutes per automobile.

    Mercedes GLE is a mid-size luxury SUV, first launched in 1997. Cars sold in Vietnam are imports that compete with rivals like the BMW X5, Lexus RX and Audi Q7.

    In Vietnam, GLEs is currently priced at VND4.509-5.679 billion (US$191,000-240,600).

    Lees ook:

    Lees ook:

  • Honda Motorcycles And Scooters India Twitter Page Hacked

    Honda Motorcycles And Scooters India Twitter Page Hacked

    The official Twitter account of Honda Motorcycles and Scooter India was hacked over the weekend. The company today put out a statement on social media asking people to stop any interactions with its Twitter handle until further notice and disregard any posts or communications on the page since Sunday, March 5. The company also said it contacted Twitter to re-establish control of its account.

    A look at the official Twitter handle of HMSI shows that the page has since lost the blue tick that identified it as the official handle as well as dropped the profile image. The link to the official website has since been rand another while the latest retweeted story is to a third-party NFT page. Similarly, the section under likes are filled with tweets of third-party art creator pages.

    Honda has said it is looking to re-establish its control over its Twitter account as soon as possible.

    The company has recently been teasing a new motorcycle for the Indian market. The new model is expected to sit in the 100cc commuter segment and be called the Shine. The model is set to be launched in India on March 15.

    Lees ook:

  • Renault, Geely Ink Pact With Aramco For Engine Venture

    Renault, Geely Ink Pact With Aramco For Engine Venture

    Oil giant Saudi Aramco has agreed to take a minority stake in a new powertrain engine company that French car maker Renault SA and China’s Geely Automobile Holdings Ltd plan to set up jointly, they said on Thursday.

    Reuters reported in January that Aramco has been involved in advanced discussions to take up to 20% stake in a previously announced but still-unnamed Geely-Renault powertrain company that would develop and supply internal combustion engines (ICE) and hybrid technologies.

    They said on Thursday Geely and Renault are expected to retain equal equity stakes in the new independent entity, but did not disclose how much each would own and how much Aramco would invest.

    The new joint venture is aimed at developing more-efficient gasoline engines and hybrid systems at a time when the focus of much of the automobile industry has been on the capital-intensive transition to purely electric vehicles.

    “This partnership with Aramco will… give it a head start in the race towards ultra-low-emissions ICE powertrain technology,” Renault CEO Luca de Meo said in the statement.

    By carving out its internal combustion engine business, Renault plans to focus on electric cars, part of the French automaker’s broad restructuring that also involves overhauling its decades-old alliance with Nissan Motor Co.

    “Aramco’s entry brings to the table unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen,” De Meo said.

    The deal would make Aramco the first major oil producer to invest in the car business, as the rise of electric cars threatens to cut demand for conventional fuels.

    Last year, Aramco announced a partnership with Hyundai Motor Co to study advanced fuels that could be used in hybrid engines to reduce CO2 emissions.

    For Geely, the deal with Renault extends its pattern of building partnerships to expand beyond China. Geely previously announced a hybrid gasoline engine development deal with Mercedes-Benz and holds a stake in the German automaker.

    The new company would have an annual production capacity of more than 5 million in

    Lees ook:

    Lees ook:

  • Tesla Recalls 3,470 Model Y Vehicles Over Loose Bolts

    Tesla Recalls 3,470 Model Y Vehicles Over Loose Bolts

    Tesla said it recalls 3,470 2022 through 2023 Model Y vehicles in the United States because bolts securing the second-row seatback frames may not have been securely tightened, according to a public filing.

    The National Highway Traffic Safety Administration (NHTSA) said a loose seat frame bolt may reduce seat belt system performance, increasing injury risks during a crash.

    Tesla told NHTSA it has identified five warranty claims since December that may be related to these conditions. Tesla said it was not aware of any injuries or deaths that may be related to the recall issue.

    Tesla will inspect bolts securing second-row driver-side and passenger-side seat back frames to the lower seat frames and if needed tighten them to specifications.

    In December, the automaker said that a Tesla supplier implemented improved process controls along with improved training and supervision to ensure bolts are torqued to specifications.

    Lees ook:

  • Tata Motors Launches Its First Registered Vehicle Scrapping Facility

    Tata Motors Launches Its First Registered Vehicle Scrapping Facility

    Tata Motors launched its first Registered Vehicle Scrapping Facility (RVSF) in Jaipur, Rajasthan today. The facility is called Re.Wi.Re which stands for Recycle with Respect and has a capacity of 15,000 vehicles per annum. The company also claims that the facility uses eco-friendly methods to dispose of the vehicles, which will go through a strict documentation process before being dismantled. It is developed and operated by Tata Motors’ partner Ganganagar Vaahan Udyog Pvt. Ltd. to scrap end-of-life passenger and commercial vehicles of all brands. The facility was inaugurated by Hon’ble Union Minister of Road Transport and Highways, Shri Nitin Gadkari.

    Speaking at the inauguration ceremony, Hon’ble Union Minister of Road Transport and Highways, Government of India, Shri Nitin Gadkari said “The National Vehicle Scrappage Policy was introduced with the aim to promote circular economy by creating an ecosystem for phasing out unfit and polluting vehicles and to achieve a lower carbon footprint in the country by replacing them with greener and more fuel-efficient vehicles. I congratulate Tata Motors for setting-up this quality facility that is at par with global standards. We are working towards positioning India as a vehicle scrapping hub for the entire South Asian region and need more such state-of-the-art scrapping and recycling units in India.”

    Mr. Girish Wagh, Executive Director, Tata Motors, said, “The inauguration of this RVSF (Registered Vehicle Scrapping Facility) heralds a new beginning in responsible scrapping of end-of-life vehicles. With globally benchmarked and optimised recycling processes, we intend to yield maximum value from the scrap for future use and minimise waste for the overall betterment. We appreciate the visionary efforts of Shri Gadkari ji in enabling the National Vehicle Scrappage Policy and look forward to setting-up Re.Wi.Re facilities across the country in collaboration with our partners. These decentralised facilities will benefit the customers, share the economic value generated, create employment while addressing the need of scrapping vehicles in every part of the country in an eco-friendly manner.”

    Lees ook:

    Lees ook:

  • Skoda cars to be sold in Vietnam from May

    Skoda cars to be sold in Vietnam from May

    Skoda cars are expected to be imported from the Czech Republic and sold from May before being assembled there, according to Skoda Vietnam sources.

    In the C-segment, CUV Karoq, one of the company’s bestselling models, will compete with the Hyundai Tucson, Kia Sportage, Mazda CX-5, Honda CR-V, and others.

    In the D-segment, the SUV Kodiaq will go up against the Kia Sorento, Hyundai Santa Fe, Mazda CX-8, and Toyota Fortuner.

    In late February Skoda and its Vietnamese partner TC Motor, a distributor and assembler of South Korean Hyundai vehicles, began building a plant in the northern province of Quang Ninh.

    Vietnam is the first Southeast Asian country in which Skoda will put up a factory and plans to export vehicles to other countries in the region.

    Skoda makes 11 models, with the Octavia being its bestseller. Various models, including B-segment sedan Slavia are expected to be sold in the country from late 2024.

    Last year the company sold 731,300 vehicles in some 100 markets worldwide, with Germany, the Czech Republic, India, the UK, and Poland being the biggest.

    Lees ook:

  • Vietnam’s largest automobile distributor braces for tumble in profits

    Vietnam’s largest automobile distributor braces for tumble in profits

    Saigon General Service Corporation, the country’s largest auto distributor, expects profits to decline by VND150 billion (US$6.33 million) in 2023 amid forecasts of a turbulent year.

    In its annual report released recently, Savico said the auto market faces challenges as high car loan interest rates and lack of credit since the fourth quarter of 2022meant businesses and individual consumers called off or delayed purchase plans.

    Since September, demand has fallen to 60-70% of normal, leading to oversupply and high inventory costs.

    “The market will need three to six months to rebalance. The securities and real estate markets are now in difficulty, and people do not have as much motivation for buying cars as before.”

    Competition would be more intense than ever, and so Savico only expects profit before tax of be VND538 billion, down more than VND150 billion from last year, when it reported record earnings of VND688 billion ($29.3 million) after a 2.7-fold rise from 2021.It was higher than the combined figures of the previous two years.

    But it also expects revenues to grow by at least 20%.

    Savico, the distributor of Toyota, Honda, Ford, Mitsubishi, and Volvo cars, plans to expand its distribution network and sell new brands.

    Last year the industry enjoyed record profits as demand recovered after a two-year slump due to Covid-19.

  • Xiaomi Demands Payout From Supplier After Car Designs Leaked

    Xiaomi Demands Payout From Supplier After Car Designs Leaked

    China’s Xiaomi said on Thursday it had imposed a 1 million yuan ($149,000) penalty on a supplier after it leaked early design drafts of an upcoming car model.

    On its official Weibo page, a spokesperson wrote Xiaomi had “dealt seriously” with a Beijing-based molding technology company which on Jan. 22 publicly revealed images of an upcoming car’s front and rear bumpers, violating a confidentiality agreement.

    Xiaomi did not disclose the name of the company and we could not identify it.

    As punishment, the smartphone-turned-car maker said it would impose “economic compensation” of 1 million yuan ($148,763) on the supplier.

    The spokesperson added it had instructed the supplier to strengthen its information security management, and develop plans to upgrade its confidentiality measures.

    Xiaomi CEO Lei Jun also circulated the note on his personal Weibo page.

    Over the Chinese New Year, images purportedly showing mock ups of the front and rear of Xiaomi’s upcoming electric vehicle (EV) spread on social media, as well as a full view of what appeared to be a white compact sedan, with a license plate that read “MS11”.

    The leaks would mark the first confirmed images of Xiaomi’s long-awaited automobile.

    However, News portal Sina Tech reported on Thursday that Wang Hua, general manager of Xiaomi’s public relations department, said the leaked designs were part of a bidding process and were not final renderings.

    In March 2021 Xiaomi, a hardware company best known for its smartphones, said it would enter the automotive sector, aiming to invest $10 billion in the project over ten years.

    Since then, the company has committed to opening a plant in Beijing that could produce 300,000 vehicles per year.

    The company has said it hopes to reach mass production of its cars in the first half of 2024.

    Lees ook:

  • Tesla to halt some China production for upgrades

    Tesla to halt some China production for upgrades

    Tesla Inc will suspend some production until the end of February as the electric-vehicle maker upgrades the facility to make a refreshed version of the Model 3 compact sedan, Bloomberg News reported on Wednesday.

    Tesla is developing a revamped version, codenamed “Highland”, of the Model 3, first launched in 2017, Reuters reported in November.

    The Bloomberg report said that some workers will not be allowed on production lines from as soon as Sunday.

    To spur demand, Tesla had cut prices globally in January, unleashing a price war.

    Ford Motor Co reacted with its price cuts for its Mustang Mach-E and Lucid Group provided discounts for certain variants of the Air luxury sedan.

     

    Lees ook:

    Lees ook:

  • Jaguar Land Rover India Appoints Rajan Amba As Its New Managing Director

    Jaguar Land Rover India Appoints Rajan Amba As Its New Managing Director

    Tata Motors-owned luxury car brand Jaguar Land Rover has appointed a new Managing Director for its India business. The company’s current President and Managing Director Rohit Suri will take retirement from his position by the end of the current financial year. While it had not named Rohit’s successor back then, the company has now announced that Rajan Amba will take over as the Managing Director of Jaguar Land Rover India, from March 1, 2023.

    Rajan will join Jaguar Land Rover from Tata Motors Passenger Vehicles, where he is currently the Vice-President of Sales, Marketing and Customer Care. Rajan Amba succeeds Rohit Suri, who is due to retire on March 31, 2023.

    Rajan Amba commented on his appointment, “I have immensely enjoyed my stint at Tata Motors and look forward to the next one at Jaguar Land Rover – iconic automotive brands, which I hugely admire. I keenly look forward to working with my new team at Jaguar Land Rover India and steering forward our future growth strategy.”

    Martin Limpert, Regional Director, Overseas, Jaguar Land Rover said, “Rajan’s customer-centric mindset, broad experiences from different industries, and his passionate and authentic leadership approach bring the right set of qualities to further grow our operations into the promising future of India, aligned with our overall Reimagine strategy to become the creator of the world’s most desirable luxury vehicles and services for the most discerning of customers.”

    Jaguar Land Rover India is one of the key luxury car marques in India and offers a range of products across the two brands. In the last couple of years, the company launched some exciting products in India, including the all-electric Jaguar I-Pace, the new-gen Land Rover Defender, and the new Range Rover and Range Rover Sport in the country.

    Lees ook:

  • Thaco eyes 7% auto sales growth despite headwinds

    Thaco eyes 7% auto sales growth despite headwinds

    Automaker Thaco Group plans to increase its sales 7.7% from last year to 120,000 units this year, with earnings of more than VND90 trillion ($3.80 billion), despite concerns about market challenges.

    The plan calls for the sales of 96,000 passenger cars, 23,500 trucks, and 1,500 buses and minibusses, Chairman Tran Ba Duong said in a letter to employees.

    Duong said many global challenges are expected this year, including rising inflation and tightened spending, adding that Vietnam’s economy is forecast to grow slower while consumption declines.

    Although Thaco is targeting a sales growth, Duong anticipates that the auto industry will see a drop in sales and that competition will be fierce. Lowering costs to bring down prices is a key mission, he added.

    Thaco Group this year begins a new development phase with focus on six sectors: automobiles, mechanics and supporting industry, agriculture, logistics, investment, construction and commerce.

    The company wants the mechanics and supporting industry managed by its subsidiary, Thaco Industries, to be the second biggest business in the group with a target revenue of over VND20 trillion.

    The company expects to manufacture and export 15,000 trailers to the United States, Canada, Mexico and Japan.

    Thaco Industries was established last year with a charter capital of VND12.6 trillion. It expects to spend over VND3 trillion this year to build a manufacturing complex to produce auto parts.

    Agriculture subsidiary Thaco Agri plans to grow 14,000 hectares of bananas, and expects to have over 100,000 cows and 215,000 pigs by the end of the year.

    The construction unit Thadico – Dai Quang Minh will launch 24 new projects this year and complete three projects.

    Lees ook:

  • Tesla To Freeze Hiring, Lay Off Employees Next Quarter

    Tesla To Freeze Hiring, Lay Off Employees Next Quarter

    Another wave of layoffs are coming at electric-car maker Tesla Inc in the next quarter, news website Electrek reported on Wednesday, citing a source familiar with the matter.

    Tesla is also going to freeze hiring, according to the report. The company did not immediately respond to a Reuters request for comment.

    Shares of Tesla rose 1% to $139.25 in trading before the bell.

    The reported move comes at a time when Tesla investors have raised concerns over Chief Executive Elon Musk’s distraction with managing Twitter, the social media platform he bought for $44 billion in October.

    Moreover, Tesla analysts have also cut their price targets on the stock worried that weakness in demand from China will weigh on the EV maker’s deliveries next year.

    Musk in June said Tesla would reduce its salaried workforce by roughly 10% over the next three months.

    Lees ook: