In recent years, China's auto industry is rising rapidly, and it has become the world's largest automobile production and sales country for more than ten consecutive years. China has not only achieved great success in the domestic market, but has also gradually become the world's largest exporter of automobiles. According to the latest data released by the General Administration of Customs, in October this year, China's automobile exports reached 4880,000 units, up 9% month-on-month8%, a year-on-year increase of 442%；From January to October, the total export volume of automobiles reached 39220,000 units, a year-on-year increase of 597%。These automobile exports are mainly for the European and American markets, and Belgium, the United Kingdom, Russia and other countries have become the main export destinations of Chinese automobiles. In addition, with the rapid economic development of Southeast Asia, Chinese automobiles have also begun to actively enter the market, and many car companies have entered Southeast Asian countries to compete for share. However, despite the great success of Chinese cars in overseas markets, there are hardly any Chinese cars in our neighboring Vietnam, why?
1.High tariffs and lack of subsidy protection: In order to protect the country's auto industry, Vietnam has set tariffs of up to 80% on vehicle imports, which greatly increases the cost of exporting Chinese cars to Vietnam. At the same time, many Southeast Asian countries have low tariffs on Vietnamese cars, and some can even enjoy zero-tariff treatment, making Chinese cars lose their advantage in the world. In addition, China regards the development of new energy vehicles as an important strategy to increase automobile exports, but Vietnam does not provide corresponding subsidy policies, which further reduces the competitiveness of Chinese cars in the Vietnamese market.
2.Lack of channels and services: The demand for automobiles in the Vietnamese market is more focused on the experience of repair and after-sales service. However, in the past, Chinese automobiles lacked sufficient investment in the distribution network and after-sales service system of the Vietnamese market, and compared with Japanese and Korean automobiles, the maintenance and service network after product sales was relatively weak. In addition, Vietnam's relatively imperfect infrastructure and poor road conditions require vehicles with high toughness and reliability, while Japanese cars are widely welcomed in the Vietnamese market due to their durability and low maintenance costs.
3.Consumer bias against Chinese car brands: Due to historical reasons, Vietnamese consumers hold some stereotypes and prejudices about Chinese car brands. In the 90s of the last century, Chinese motorcycle brands invaded the Vietnamese market at low prices, but due to unstable quality and inadequate after-sales service, many consumers had a sense of distrust of Chinese brands. This impression continues to this day, making Vietnamese consumers skeptical of Chinese car brands. Even though Chinese cars have improved dramatically in terms of quality, handling and intelligence, Vietnamese consumers still consider them to be as unreliable as Chinese motorcycles in the 90s.
Although Chinese car brands face many challenges in the Vietnamese market, there are also certain opportunities and possibilities:
1.Improving product quality and brand image: Chinese car brands have significantly improved in quality and are gradually building a good reputation. If Chinese brand cars perform well in developed markets such as Europe and the United States, it can help change the prejudice of Vietnamese consumers against Chinese brands, thereby opening up the Vietnamese market.
2.Building local factories: Chinese auto brands can build factories directly in Vietnam to meet the needs of the local market by leveraging the advanced factory technology and experience established in developed markets such as Europe and the United States. In this way, the cost of customs duties can be reduced and the competitiveness of Chinese cars in the Vietnamese market can be improved.
3.Establish a sound sales and service network: Chinese auto brands in the Vietnamese market need to increase investment in dealer networks and after-sales service systems to improve consumers' experience after purchasing a car, so as to increase consumers' trust and goodwill towards Chinese cars.
4.Strengthen brand promotion and publicity: Chinese auto brands can improve their brand awareness and image through marketing and publicity, and show Vietnamese consumers the innovative, high-tech and cost-effective characteristics of Chinese auto brands.
Despite the great success of Chinese cars in overseas markets, Chinese car brands still face some challenges in the Vietnamese market. Factors such as high tariffs and lack of subsidy protection, inadequate channels and services, and consumer bias against Chinese car brands have all limited the development of Chinese cars in the Vietnamese market. However, Chinese auto brands are expected to succeed in the Vietnamese market by improving product quality and brand image, building local factories, establishing a sound sales and service network, and strengthening brand promotion and publicity. With the continuous development of China's auto industry and the improvement of independent R&D capabilities, it is believed that Chinese auto brands can overcome these challenges, open the door to the Vietnamese market, and achieve sustainable development.