Chinese car company flees

Present in the Vietnamese market from 2016, to 2019, Dong Feng company decided to expand the market with a series of new showrooms in Ho Chi Minh City, Can Tho City and Binh Duong province. These showrooms sell 6 car models in all segments from sedans, MPVs to SUVs, from 5 seats to 7 seats.

However, the business of Dong Feng cars in particular and Chinese cars in general in Vietnam faces many difficulties, dealers and car manufacturers are not successful in business, leading to very poor brand recognition in the market.

Before stopping business in Vietnam, Dong Feng company simultaneously sharply lowered the prices of some inventory models. In particular, the Dong Feng T5 EVO SUV is considered to have the most beautiful design of this car company with an initial price of 719 million VND / unit, now reduced to 469 million VND / unit. Another model is the M3 in the multi-purpose vehicle segment with a selling price of nearly 500 million VND/unit when it was launched, now it has to be reduced to 300 million VND/unit to soon release inventory.

The business of Dong Feng models in the Vietnamese market was not effective, so the Chinese car company decided to flee

Mr. Tran Ngoc Phuc, former Sales Director of SUTONG Import-Export Service Co., Ltd – one of Dong Feng’s car distributors in the Vietnamese market, pointed out the reason why this Chinese car company had to withdraw from the market. Vietnam market is due to overpriced, with samples up to 899 million VND/piece. At the same price, there are many prestigious Japanese and Korean models for customers to choose from.

“Price is high, but the design of Chinese car models is not beautiful, not equipped with many technologies, so the competitiveness is not high. The time when Dong Feng company expanded the market in Vietnam was also the time when the COVID-19 epidemic appeared. Currently, showrooms have to struggle. Not to mention, electric cars are becoming a trend, gasoline cars are gradually losing their attractiveness, so the car company is no longer interested in developing the market for gasoline cars “- Mr. Phuc explained.