Car Prices Forecasted to Rise at Least 10 per cent in 2005

Car Prices Forecasted to Rise at Least 10 per cent in 2005

Prices of cars of less than seven seats in Vietnam are forecast to rise at least 10 per cent in 2005, although most car manufacturers have not announced official numbers.

Vinastar, one of the first companies announcing new prices for the new year, sell the Pajero at US$59,400, Lancer Gala at US$30,800 and Jolie SS at US$29,700. Vinastar said these prices are only effective within 2005.

Mercedes-Benz Vietnam (MBV) has increased prices of the luxury E240 to US$115,000 from the US$99,900 in 2004, the C240 to US$81,000 from US$69,900, and E200-Kompressor to US$92,000 from US$83,900.

BMW is now offering its 318i M Sports and 325i at US$63,500 and US$76,000, up 11 per cent and 13 per cent compared with prices in 2004.

Both Ford and Toyota have remained silent about a price hike in Vietnam. However, their new prices will be 12 per cent higher than the old ones.

Nguyen Hop Ky, Mercedes-Benz Vietnam manager of public relations, said MBV will encounter numerous difficulties in 2005 due to the special consumption tax rise from 24 per cent to 40 per cent.

According to experts, all eleven automakers in Vietnam have to prove themselves in order to survive in 2005.

(Vietnam Economics Times)