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  • Honda Car Sales Drop By 27 Per Cent In May

    Honda Car Sales Drop By 27 Per Cent In May

    Honda Cars India announced its sales report for May 2019 and the automaker has reported declining sales for the second consecutive month. The Japanese car maker sold 11,442 units last month, a drop of 27 per cent in year-on-year sales when compared to 15,864 units that were sold in May last year. Honda also exported 450 units in May this year, down by 12.7 per cent from 516 units exported in May 2018. The decline in volumes aligns with the overall disappointing sentiment in the auto sector that has seen a slump in volumes over past few months.

    Speaking on the declining numbers, Rajesh Goel, Senior Vice President and Director, Sales and Marketing, Honda Cars India said, “The market continues to be tough for the auto industry with two consecutive months of such a high de-growth. It is unprecedented in the last two decades. After elections, we were expecting an upswing which has not yet come. Factors like liquidity that is affecting capital to auto sector along with an increase in fuel prices have remained a challenge to revive consumer sentiments. We are still hopeful that demand will revive due to pent up demand, favourable indicators on monsoon and expected actions by the new government.”

    Honda had favourable volumes in May last year on the back of the launch of the second generation Amaze subcompact sedan. In the past year, the automaker has had some major launches including the new generation CR-V and the all-new Civic sedan, with the latter off to a good start. Honda is expected to bring the new HR-V compact SUV as well in India that will take on the Hyundai Creta, MG Hector, Tata Harrier and the likes.

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  • Honda’s EV Journey In India To Begin With Hybrid Technology

    Honda’s EV Journey In India To Begin With Hybrid Technology

    It was back in 2018 that we told you about Honda wanting to get into the EV space in India. The electric car which will be launched in India will be one of the company’s global models which will be produced after 2019 after the Japanese carmaker rolls out its electric plan for a wide set of market. The vehicle that will make its way to India could be a ‘B’ segment vehicle the development of which is under process for the Indian Market. But this EV strategy will only pan out until 2023-24. Meanwhile, however, the focus will be on a gradual shift towards EV, which is why hybrid technology will find its way into Honda Car India’s line-up of cars. Honda is also looking to localize the production of hybrid and EV solutions in India in a bid to ensure that it is accessible and affordable for the buyers.

    According to a statement made to PTI by Senior Vice President and Director Rajesh Goel, Honda Cars India, “Till such time and also till the development of suitable charging infrastructure in the country, we feel that hybrid vehicles can be considered as good intermediate technology in electrification initiatives. Accordingly, we will begin our electrification journey in two years with hybrid technology.”

    Currently, the company only has the Accord hybrid in its portfolio and it attracts 28 percent rate with a cess of 15 percent taking its price to over ₹ 43 lakh (ex-showroom). As per its Vision 2030, the company strives to electrify two-thirds of its global automobile unit sales in 2030 with its range of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicle (PHEVs), battery electric vehicle (BEVs) and fuel cell vehicles (FCVs)
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  • Honda Files Patents For Variable Riding Position

    Honda Files Patents For Variable Riding Position

    Honda has filed a series of patent applications in Japan for what seems to be a new technology offering two different riding positions on the same motorcycle. The patent images show a Honda CBR1000RR which can have two different riding positions – an aggressive and sporty riding position, as well as a more upright and relaxed riding position. The key elements in the technology are the ability to move the bars and the screen, which provides the ability to raise the handlebars from the normal clip-on height because they are attached to extended tubes that run parallel with the fork legs.

    According to the patent application, the position can be changed by the press of a button. Also movable is the windscreen, which is also a simple operation. The top section of the front fairing is attached to a scissor-style frame that easily allows the rider to move the screen upward and into a more vertical position, if needed, for a more touring friendly riding position from an aggressive, sporty riding position. What is clear from the patent drawings is that this is not a complex mechanism that will require a ground-up re-engineering of the bike.

    It’s still not clear whether Honda will actually introduce a future CBR1000RR Fireblade with this new innovative technology, or if there will be an altogether new model which will showcase this variable riding position. Either ways, expect some sort of concept bike which Honda is likely to display, either later this year, or at one of the motorcycle shows next year which will showcase this unique new feature.

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  • Honda Confirms Closure of UK Car Plant

    Honda Confirms Closure of UK Car Plant

    Honda has confirmed its western England car factory, which employs 3,500 people, will close in 2021. The Japanese carmaker announced Monday that the Swindon plant will shut in two years, “at the end of the current model’s production life cycle.” Honda makes its popular Civic model at the factory, 70 miles (115 kms) west of London.

    Reports of the closure first emerged in February, heightening concerns about the impact of Brexit-related uncertainty on the U.K. economy. Honda said the closure is not Brexit-driven but “is part of Honda’s broader global strategy in response to changes to the automotive industry.”

    The British government and union consultants, but “no viable alternatives to the proposed closure of the Swindon plant have been identified.”

  • Honda Car India’s Sales Grow By 23% In April

    Honda Car India’s Sales Grow By 23% In April

    Honda Cars India registered monthly domestic sales of 11,272 units in April 2019 as against 9,143 units in April 2018 registering a growth of 23 per cent. The company has seen a strong sales growth thanks to the new-gen Amaze as also the WR-V. The company even exported 220 units in April 2019.

    Rajesh Goel, Senior Vice President and Director, Sales and Marketing, Honda Cars India Ltd said, “HCIL’s April sales growth is primarily due to lower base effect, as there was no Amaze in corresponding month last year during model runout. The ongoing elections and overall subdued market sentiment continues to affect the sales momentum. Going forward, the industry is heading towards a tougher year impacting sales due to volatility in fuel prices, increase in car prices owing to new regulations and stricter inventory control for smooth switchover to BS6 regime by year end.”

    The company plans to bring more cars to India in 2019. In fact the company had already announced that there would be 6 new models in three years starting 2018. The company has already launched 3 new models in the country in the form of the new-gen Amaze, CR-V and even the Civic. We wait to see what more the company brings to the table.

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  • Honda BR-V Facelift Unveiled In Indonesia

    Honda BR-V Facelift Unveiled In Indonesia

    Honda has revealed the updated BR-V at the 2019 Indonesia International Motor Show. The BR-V has not been doing great in terms of sales in India. The company has been selling close to 500 cars on an average and a facelift might just help in lifting those sales figures. However, we don’t yet know if this facelift will make to India yet as there’s no confirmation from the company. The BR-V does look prettier than before and the revised front grille and even the new bumper add to the design of the car. It looks bolder and the chrome that’s spread around the fog lamps, and even the slat on the front grille, adds to the premiumness of the BR-V.

    There’s a trapezoidal air dam and a silver scuff plate too. From what we can see, the facelift of the BR-V gets projector headlamps with L-shaped daytime running lights. The company has also tweaked the rear bumper slightly, so the BR-V still has the muscles and the character lines make sure that the car still oozes that SUV-ness. The BR-V facelift also gets 16-inch dual tone alloy wheels.

    There aren’t many changes made to the cabin of the BR-V as it retains the all-black dashboard and the touchscreen infotainment system. While the car launched the Indonesia is a 1.5-litre petrol, the one available in India is a 1.5-litre diesel as also a 1.5-litre petrol. With the new regulations coming into the country, carmakers are making sure that the line-up it brings to the market will be sustainable as also will boost its sales in the market. We wait to see what the company retains for the Indian market

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  • Honda NeoWing Trike Patent Granted

    Honda NeoWing Trike Patent Granted

    Quite a few Japanese two-wheeler manufacturers are exploring the idea of making motorcycles with three wheels. Technically, a trike is a vehicle which has two wheels at the rear and a single wheel up front. But, the likes of Yamaha Niken and now the Honda NeoWing concept could be called as reverse trike. The patent document that carandbike accessed said that the patent was filed back in 2016 and it was finally granted and published on March 20, 2019.

    The patent document also reveals that the NeoWing may be powered by either a two-cylinder or a six-cylinder engine and the layout could either be a V-twin or a transverse layout. Of course, if it is the latter engine option, then Honda will use the same engine as the one on the Gold Wing, which makes 126 bhp and 170 Nm.

    Honda could also use an electric motor on the production model of the NeoWing concept, which could power either the front wheels or the rear wheel. At present, there is no confirmation on when Honda will officially unveil the production model of the NeoWing but with the patent granted, we believe it will be sooner than later. At present, the only leaning three-wheeler which is under production is the Yamaha Niken! The Niken is powered by an 847 cc, in-line three cylinder engine making, 111.8 bhp and 87.5 Nm of peak torque which is the same as the one on the Yamaha MT-09.

  • New Honda Accord For ASEAN Markets Revealed

    New Honda Accord For ASEAN Markets Revealed

    The tenth generation Honda Accord has been revealed for the ASEAN markets and the all-new sedan is more compact than its predecessor while offering more generous cabin space. Interestingly, the new generation ASEAN-spec Accord is similar to the North American version in design that has been on sale since 2017. The latter model has usually been bolder and sportier in terms of appearance, and it’s nice to see the ASEAN model borrowing those traits. This is also the version of the new Honda Accord that India will get, possibly by next year.

    With respect to dimensions, the 2019 Honda Accord is shorter in length, while the wheelbase has gone up over the ninth generation version. The new Accord is 13 mm shorter at 4920 mm, while the wheelbase stands at 2830 mm, up by 54 mm. The new version is also 10 mm wider than the previous gen Accord while the roofline has been lowered by 15 mm that lends a coupe-like appearance.

    The tenth generation Honda Accord gets an imposing design language with the thick chrome bar on the grille with the giant ‘H’ in the centre. The car gets full-LED headlamps with daytime running lights and the fog lamps too are LED equipped. The coupe roofline takes prominence at the sides with a chrome lining running through, and also gets the diamond cut alloy wheels. The rear sports the new C-shaped LED taillights that we first saw on the new generation Civic globally and the boot comes with an integrated spoiler for the sporty appearance.

    Inside, the ASEAN-spec 2019 Honda Accord gets a familiar treatment with the flat-bottom, multi-function steering wheel, floating infotainment system and a semi-digital instrument console. The seats are upholstered in leather and are finished in brown, creating a nice contrast over the black dashboard. The leather upholstery also extends to the door panels and centre console in the car. Like the current version, the new Accord is loaded on tech and comes with climate control, electric sunroof, heads-up display, front and rear parking sensors, 360-degree camera, cross traffic monitoring, wireless smartphone charging, Honda Smart Parking Assist System with auto parallel and perpendicular parking. The car also gets the Honda Sensing Suite that adds a bunch of safety aids to the sedan.

    The all-new Honda Accord will be offered with two engine options including the 1.5-litre turbocharged petrol engine that churns out 188 bhp and 243 Nm of the peak torque, while there is also the 2.0-litre four-cylinder petrol motor that is paired with electric motors on the hybrid version. The combined output on the new Accord Hybrid is rated at 213 bhp. It is the hybrid version that India is likely to get and will replace the current Accord Hybrid already on sale here.

  • Richemont joins Alibaba’s IP alliance on brand protection

    Richemont joins Alibaba’s IP alliance on brand protection

    Global luxury group Richemont has joined the Alibaba Anti-Counterfeiting Alliance, a partnership between the e-commerce giant and brands that works to protect intellectual property rights on Alibaba’s platforms. Geneva, Switzerland-based Richemont is now among the 115 members from 16 countries and regions that are a part of the IP alliance, as well as the latest from the luxury sector to partner with the e-commerce giant on brand protection. Richemont said it would share its technology, expertise and other information to support the Alliance’s efforts.

    Richemont owns 17 luxury brands, including Cartier, Montblanc, Piaget, Van Cleef & Arpels, Watchfinder & Co and Chloe, in addition to Yoox Net-A-Porter Group, the online retail platform. YNAP runs four different websites — Net-A-Porter, Mr Porter, lifestyle-goods destination YOOX and affordable-fashion seller The Outnet — as well as online flagship stores for leading fashion brands, such as Armani, Moncler and Valentino.

    The announcement comes a month after Alibaba and YNAP partnered to bring the site’s high-end goods to Chinese consumers. A joint venture between Alibaba and YNAP will launch a mobile app for the Net-A-Porter platform and menswear site Mr Porter, in addition to opening flagship stores for Net-A-Porter and Mr Porter on Tmall Luxury Pavilion, a channel that connects premier brands with China’s digital-first consumers.

    Richemont, along with New Balance, General Motors and McDonald’s, were the latest global brands to join the AACA. The alliance’s membership has more than tripled from the original 30 founding brands at its launch last year, and now includes  names, such as Bose, Canada Goose, Honda, Samsung, Mars, Adobe, Danone, Hasbro and L’Oreal, in 12 industry categories. They work with Alibaba in six key areas — proactive online monitoring and protection, a product test-buy program, offline investigations and enforcement actions, industry-law enforcement workshops, litigation tactics and public awareness campaigns — in the fight against IP infringement.

    In September last year, the AACA established an advisory board so that brands could provide feedback to Alibaba in areas related to IP enforcement. Alibaba has since upgraded its Intellectual Property Protection Portal as well, delivering faster navigation and a better user experience on the site, where rights holders report suspected infringing listing and share information with Alibaba. In addition, Alibaba’s Good Faith program, which is open to brands with a track record of accurate notice and takedown filings, has streamlined the reporting process.

    The IP alliance does not restrict its brand-protection efforts to the online space. Alibaba and its brand partners also work to find and eliminate fakes at their source. In the luxury sector, Alibaba and Louis Vuitton – one of the first members of AACA – conducted an offline investigation that resulted in the seizure in May of approximately RMB 100 million ($14.4 million) worth of counterfeit goods.

    “The protection of intellectual property rights requires all stakeholders to work closely together and share their expertise. The AACA will continue its efforts to establish industry best practices for IP protection by creating effective collaboration among brands, platforms and law enforcement,” said Michael Yao, Alibaba’s senior VP and head of Brand Protection and Cooperation.

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  • Honda raises forecasts on solid motorbike sales

    Honda raises forecasts on solid motorbike sales

    Japan’s Honda Motor said Tuesday it was raising annual forecasts after first-half profits rose over 19 percent on motorcycles sales in Asia. Japan’s third largest automaker now expects net profit to reach 675 billion yen ($6 billion) for the fiscal year ending March, down from last year but a still an increase from its forecast last quarter.

    It also revised up annual sales to to 15.8 trillion yen.

    The company said it was seeing strong growth in the sales of motorbikes in Indonesia, Vietnam and other Asian countries, and touted cost-cutting efforts.

    It said net profit in the April-September period was up 19.3 percent to 455.1 billion yen while operating profit jumped 21.7 percent to 513.9 billion yen.

    Sales rose 5.0 percent to 7.87 trillion yen.

    “Honda enjoyed strong sales of motorcycles… This offset the negative impact of floods in Mexico on its production,” Satoru Takada, an analyst at TIW, a Tokyo-based research and consulting firm said ahead of the results.

    Honda was forced to temporarily halt operations at its largest auto factory in Mexico due to floods in June, and said at the time that it would lose 50 billion yen as a result.

    Japanese automakers remain on edge over talk of U.S. tariffs, though immediate action by Washington has been put off for now.

    “Japanese carmakers are also bracing for the impact of U.S. trade disputes with other major economies,” Takada said.

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  • 50,000 Units Of The Honda Amaze Sold In 5 Months

    50,000 Units Of The Honda Amaze Sold In 5 Months

    Honda Cars India Ltd today announced that the all new Amaze has crossed the 50,000 sales mark in just 5 months since its launch in mid May 2018. The Honda Amaze currently contributes to 50 per cent of the total HCIL sales during April -Sept 2018. This is fastest 50,000 sales number recorded by any new model launched by Honda in India. The company says that the Amaze attracted more than 20 per cent first time buyers, while the car has been well received across markets with 40 per cent sales coming from Tier 1 cities and 30 per cent each from Tier 2 and Tier 3 cities.

    Makoto Hyoda, Director, Sales and Marketing, Honda Cars India Ltd said, “The overall concept of All New Amaze was to develop a one-class-above sedan for Indian family use that exceeds the expectations of customers in the compact sedan segment. The response to the car with 50,000 sales in 5 months is overwhelming. The advanced CVT technology has found very strong acceptance among customers with 30% of Amaze customers opting for automatic variants in petrol and diesel.”
    The new Amaze takes on the very popular Maruti Suzuki Swift Dzire and has impressed us by winning the comparison test. The Honda Amaze is completely different as compared to the first generation. While the design is a little conservative, buyers might appreciate the balanced look the new car has. While you do get features like daytime running lights or 15-inch alloy wheels on the top of the line variant, the Amaze loses out on the likes of LED headlamps or even projector headlamps. Diamond cut alloy wheels like the one on the City could have made it a nicer package too.

    On the interior though, the new Honda Amaze is much nicer as compared to its predecessor. It now gets a larger 7-inch touchscreen infotainment system, called Digipad-2 with both Apple Carplay and Android Auto. It also gets a start-stop button, automatic climate control and as we mentioned earlier, the CVT variants get paddle shifters too. There is also more space in the cabin as compared to earlier and that is mainly due to a longer wheelbase. The new Honda Amaze also gets a fold-down central armrest for the rear passengers and rear AC vents.

    Under the hood, the petrol-powered Honda Amaze gets a 1.2-litre, 4-cylinder, naturally aspirated engine that makes 89 bhp of peak power and 110 Nm of peak torque. The engine is mated to either a 5-speed manual gearbox or a 7-step CVT automatic. The CVT also gets paddle shifters – a first-in-class feature in this segment. Fuel economy ratings for the petrol manual are at 19.5 kmpl while the CVT petrol is rated at 19 kmpl according to ARAI test figures.

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  • Honda Active Has Crossed The 2 Crore Sales Milestone

    Honda Active Has Crossed The 2 Crore Sales Milestone

    Honda Motorcycle and Scooter India (HMSI) has announced that the company’s top-selling two-wheeler, the Honda Activa, has recently breached the 2 crore sales mark in India. Evidently, the popular Honda Active is now the first scooter in the country to cross this huge sales milestone. Interestingly enough, it took the Honda 15 years to breach first one crore sales mark, while the next one crore units were sold in just 3 years, which is four times faster than the time taken to acquire the first 1 crore customers.

    Minoru Kato, President & CEO, Honda Motorcycle & Scooter India Pvt. Ltd. today announced this feat and expressed his gratitude to the 2 crore happy Indian customers, and said “Over 18 years and 5 generations, Honda 2Wheelers India continuously added value to exceed Customers expectations & making Activa the most preferred choice of Indian 2wheeler buyers. We are delighted that Activa partnered over 2 crore Indian families on the move in realizing their dreams. As India’s Love for Activa grows, we remain committed to take on new challenges and bring joy to our customers.”

    2018 Honda Activa 5G was launched at the Auto Expo

    The Honda Active was first launched in the year 2001, and since then we have seen five generations of the scooter in India. The fifth-gen model, the Honda Activa 5G, was launched this year in February, at the 2018 Auto Expo. The Activa was truly a ground-breaking product from the Japanese two-wheeler manufacturer and it has been the country’s top-selling two-wheeler for quite some time now. In fact, in 2017 the Activa becomes not just India’s, but the World’s largest selling two-wheeler.

    The current-generation model – Honda Activa 5G, is powered by a 109 cc, single-cylinder engine which puts out 8 bhp at 7,500 rpm and 9 Nm of peak torque at 5,500 rpm. No other scooter on sale in India has been able to come close to the Activa’s sales success in its segment. In addition to features like Honda’s Combi-break system and HSE technology, the new Activa also comes with a semi-digital instrument cluster with the display showing information like additional service due indicator and ECO options. The scooter also gets a 4-in-1 hook with the seat opener switch like the Grazia and a retractable rear hook.

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  • Thailand approves electric vehicle investment plans of Nissan, Honda

    Thailand approves electric vehicle investment plans of Nissan, Honda

    Thai authorities said today they have approved investment plans worth 29.63 billion baht (RM3.8 billion), including projects by two Japanese automakers to produce hybrid electric vehicles and batteries.

    Nissan Motor (Thailand), a unit of Nissan Motor Co will invest 10.96 billion baht in one venture while Honda Automobile (Thailand), a subsidiary of Honda Motor Co will spend 5.82 billion baht on its project, the Board of Investment (BoI) said in a statement.

    The agency said it also approved a tax break for Thai AirAsia X’s 9.25 billion baht plan to lease six Airbus A330 aircraft, and for Mars Petcare (Thailand)’s 3.5 billion baht investment in pet food.

    The BoI said Thai and foreign firms submitted projects worth 284.6 billion baht in January-June, which it said was “close to” the amount in the first half of 2017, without giving the previous number. The board said the projects were mainly for Thailand’s Eastern Economic Corridor a centrepiece of the junta’s policy to lift growth and targets high-tech investment.

    The agency is sticking to its target of securing 720 billion baht in investment pledges this year, up 12% from last year, as large applications are expected in the second half, it said.

    Meanwhile, Toyota Motor Corp’s Thai unit said Thailand’s total domestic car sales are expected to be 980,000 units this year, up 12% from 2017, and more than previously expected.

    Toyota, which commands about one-third of the Thai vehicle market, also raised its own 2018 car sales in the Southeast Asian nation to 315,000 cars, up 31% from last year, Toyota Motor Thailand’s president Michinobu Sugata told a news conference. Sales have been supported by stronger economic growth and more activities by carmakers, he said.

    In January, the company predicted overall domestic sales at 900,000 cars and its own sales at 300,000 units.

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  • Floodgates could open as Honda imports cars

    Floodgates could open as Honda imports cars

    After stopping car exports to Việt Nam for more than a month, Japanese auto giant Honda Motor suddenly decided to import around 2,000 vehicles from Thailand in early March.

    This is the first batch of automobiles exempt from import tax under the ASEAN Trade in Goods Agreement (ATIGA) to be imported into Việt Nam.

    ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Việt Nam.

    Lý Thanh Bình, head of customs at HCM City’s Hiệp Phước Port, confirmed that Honda cars including Jazz, Accord, CR-V and Civic were unloaded at the port on March 1. The vehicles will be sold in one or two months after they undergo several mandatory tests as part of the customs clearance process.

    In January, Toyota Motor and Honda decided to suspend exports to Việt Nam saying they are unable to meet Việt Nam’s stringent checks of imported vehicles under the new Decree 116.

    The decree on the production, assembly, import and warranty of automobiles was issued just as Việt Nam eliminated tariffs on automobiles imported from ASEAN members.

    It requires all models of imported vehicles to obtain a Vehicle Type Approval certificate from authorities in the exporting countries.

    The new rule also requires emission and safety tests to be done on every batch of automobiles imported. In the past, only the first shipment of a model was tested.

    Many auto giants from Japan and the US have expressed concern, saying it would be difficult to meet the requirements.

    Some also said the new requirements would cause a huge waste of time and money for importers since one emission test could take two months and cost up to US$10,000.

    The decree is aimed at strengthening quality checks and protecting the local industry.

    The fact that Honda resumed exports to Việt Nam proves that car importers can remove the biggest obstacles like the above-said things that they were facing as they want to import the vehicles under the new regulations.

    Honda had Vehicle Type Approval certificates granted by Thailand where the cars were produced.

    Analysts said Honda’s decision to resume exports to Việt Nam should be considered a big factor for the Vietnamese auto market. This was because after Honda, other companies would also be able to receive similar certificates like Honda to bring their cars back to Việt Nam.

    Because of this, car imports from other countries such as Indonesia and Malaysia are also expected to soon come to Việt Nam.

    The return of Honda and other companies including Ford and Toyota in the near future is expected to drag prices significantly lower, thus fulfilling Vietnamese consumers’ dream of buying cars at lower prices.

    According to an official announcement from Honda Vietnam, its compact SUV Honda CR-V is now listed at VNĐ958 million ($42,076) to VNĐ1.068 billion ($46,907), depending on the model and specifications.

    Compared to their earlier prices, when a 30 per cent tax was in place, the 1.5E and 1.5G models are cheaper by VNĐ178 million ($7,818) and VNĐ188 million ($8,257).

    However, market observers said though tariffs on automobiles imported from ASEAN were eliminated over two months ago, car prices have shown no signs of coming down.

    Some have even seen their prices rise.

    They blamed this on not only a shortage of vehicles on the market but also the increasing cost of importing cars under the new rules.

    The shortage is understandable since only Honda of those that do not assemble in the country have gone through the new import rigmarole. Meanwhile, the number of assembled cars has also decreased because of lack of components imported from abroad, meaning supply has been unable to meet demand.

    Trường Hải Auto Joint Stock Company has hiked the prices of many models after making some cuts before Tết (Vietnam Lunar New Year) in mid-February.

    Consequently, the prices of its Mazda cars are up by VNĐ30-50 million. The Nissan Navara saw its prices cut by VNĐ10-20 million before Tết, but is now back to its earlier rates.

    Housing allure remains for overseas Vietnamese

    According to statistics from the World Bank, overseas remittances to the country last year were worth at $13.8 billion, up 20 per cent from 2016.

    This year, they are expected to go up by 5-7 per cent.

    Analysts said overseas remittances would continue to provide a vital impetus to the economy, especially to the property sector.

    The State Bank of Việt Nam said around 71 per cent of remittances went into business, and 21-22 per cent into the real estate sector.

    This means that on average every year, the sector gets an infusion of around $2.5 billion.

    Experts said the remittances are a reliable and steady source of foreign currency, and help keep foreign reserves buoyant.

    An executive at Savills Vietnam’s international residential sales department pointed out that by nature remittances are a “one-way” source of funding and could match or exceed foreign direct investment and foreign portfolio investment.

    Now they play an important role in economic growth. There are millions of Vietnamese living in the US, Europe and Asia, and a growing number of them are finding their way home to work, invest or retire.

    A thriving economy, constantly improving business environment and laws that allow overseas Vietnamese to own houses in Việt Nam are the reasons why they are investing in the housing sector.

    Experts said the housing market now offers favourable conditions for overseas Vietnamese to make profits.

    It has a wide range of products of high quality and reasonable prices, meeting overseas Vietnamese investors’ every demand, whether investment, settling down in the country or working.

    According to Savills Vietnam, safety, security and after-sales services are also factors that overseas Vietnamese and other foreign customers consider when buying a house in addition to location, price, convenience, architecture and design.

    It is undeniable that the attractiveness of the housing market has contributed to increasing remittances to Việt Nam in the last few years.

    According to the State Bank of Việt Nam’s HCM City branch, around 50 per cent of remittances to Việt Nam are to the southern metropolis.

    Around 22 per cent of the remittances to the city of $5.2 billion went into the housing market.

    Experts said to stabilise the flow of remittances into the country and into the real estate sector, the Government should offer incentives like low fees.

    They also stressed the need to make the housing market more transparent and efficiently provide market information to overseas Vietnamese.

    They wanted the Government to have tough measures to prevent the frequent occurrence of price “fever” in the housing market.

    They also called on real estate developers to carefully study overseas Vietnamese and foreigners’ housing needs and improve the quality of their products and services.

     

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  • First Vietnam’s duty-free cars arrive from Thailand

    First Vietnam’s duty-free cars arrive from Thailand

    Over 2,000 Honda cars from Thailand—the  first batches of cars to enjoy zero per cent import duty under the ASEAN Free Trade Agreement (AFTA)—have been imported to Việt Nam.

    Under the AFTA commitments, a zero per cent tax is applicable to cars imported from the bloc, with a localisation rate of 40 per cent or more in the country of origin, starting January 1 this year.

    The current batch has Jazz, Accord, CR-V and Civic models.

    A representative of Honda Vietnam said that to import the autos to Việt Nam, the firm had completed procedures to meet the requirements of Việt Nam’s Decree 116 on the conditions for production, assembly, import, business of warranty service, car maintenance and particularly the Vehicle Type Approval certificate granted by the Thailand Department of Land Transport.

    A consulting staff member at Honda’s Mỹ Đình agent said that the new vehicles would be rolled out to the market in May or early June, as it will take one or two months to complete checks on emission, quality and technical safety at ports.

    “The price of each car is expected to fall by more than VNĐ200 million.  This will be a turning point in the Vietnamese automobile market,” said the staff member.

    Earlier, the insiders calculated that with the zero per cent import tax, the price of imported cars from ASEAN countries to Việt Nam would fall by 20-25 per cent.

    Toyota Motor Vietnam and Ford Việt Nam are completing procedures to meet the requirements of the Decree 116 to import cars which are favourites in Việt Nam, such as the Ford Explorer, Everest, Ranger, Toyota Fortuner and Yaris.

     

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