Urban SUVs Engage in Price War, Newcomers Join the Fray

Mitsubishi Xforce and Other Segment Models Receive Price Reductions to Enhance Competitiveness

In early March, several car manufacturers significantly reduced prices or offered incentives on models within the subcompact SUV segment to boost demand and increase market share. Following the entry of the Toyota Yaris Cross and Mitsubishi Xforce, the urban SUV segment now features a total of eight competing models.

Japanese and Korean Automakers Engage in Price War

Toyota Vietnam announced price reductions for several vehicles, including the newly launched Toyota Yaris Cross, which debuted in Vietnam in late Q3 2023.

The highest price reduction, amounting to 80 million VND, applies to the Toyota Yaris Cross gasoline version. After the adjustment, the subcompact SUV has a starting price of 650 million VND, still significantly higher than many of its direct competitors.

The hybrid version of the Toyota Yaris Cross also received a price adjustment, dropping by 73 million VND, bringing its price to 765 million VND. Experts believe that the Yaris Cross’s 2024 price list is considerably more affordable compared to its initial launch prices that ranged from 730 to 838 million VND.

Mitsubishi Xforce and other models in the segment have reduced their list prices to increase competitiveness. Photo: Vĩnh Phúc.

The Hyundai Creta, which was the best-selling model in the segment last year, has also undergone a price adjustment of up to 41 million VND, bringing its starting price to 599 million VND. The top-of-the-line Hyundai Creta is now priced at 699 million VND, which is lower than the 719 million VND price tag of the Kia Seltos GT-Line and X-Line variants equipped with Kia Connect Lite.

Hyundai’s price reduction for the Creta comes shortly after Mitsubishi announced promotional pricing for customers who pre-order the Mitsubishi Xforce. Customers who pre-book this compact SUV can benefit from a starting price of 599 million VND for the GLX variant, while the Premium variant is priced at 680 million VND.

For the Honda HR-V, which was the best-selling urban SUV in the first month of the year, Honda Japan is offering support for registration fees. Customers who purchase any Honda HR-V variant in March will receive 50% support for registration fees (based on a 10% registration fee rate) along with additional incentives from dealerships.

Toyota Yaris Cross received a price reduction at the beginning of the year. Photo: TMV.

In contrast to the overall trend in the segment, Mazda’s CX-3 and CX-30 have seen their list prices increase early in the year. All variants of the Mazda CX-3 and Mazda CX-30 in the Vietnamese market have received a price hike of 10 million VND.

Following the adjustment, the Mazda CX-3 now has a price range of 534 million to 654 million VND, while the more premium Mazda CX-30 has a starting price of 699 million VND for the 2.0 Luxury variant and a top-end price of 739 million VND for the 2.0 Premium variant.

Anticipation for New Market Entrants

In 2024, Vietnam’s subcompact SUV segment will welcome two new models: the Mitsubishi Xforce and the Omoda C5 from Chery, a Chinese automaker.

Of these two, the Mitsubishi Xforce has already generated significant interest due to its competitive pricing, despite not yet being officially launched. The Omoda C5’s price in the Vietnamese market remains unknown, but the Chinese SUV is expected to be a notable competitor with its unique exterior design.

Mazda идет против рынка, повышая рекомендованные розничные цены на свои городские внедорожники. Фото: Bối Hạ.

In 2023, Toyota Corolla Cross unexpectedly lost its lead to the Hyundai Creta towards the end of the year. As a result, Toyota’s compact SUV was forced to relinquish its position as segment leader to its South Korean rival. Toyota Corolla Cross recorded sales of 10,485 units in the 12 months of 2023, while Hyundai Creta sold 10,719 units.

This year, with both the Hyundai Creta and Toyota Yaris Cross receiving price reductions along with the arrival of the new Mitsubishi Xforce, Toyota Corolla Cross is likely to introduce a new version in Vietnam, ready to compete with its rivals in the sales race.

Previously, several Toyota dealerships in Vietnam announced that they had begun accepting pre-orders for the 2024 Toyota Corolla Cross. It is anticipated that the next generation Toyota Corolla Cross in Vietnam will only have two variants, 1.8V and 1.8HEV, while the 1.8G variant will be discontinued.

Ожидается, что Toyota Corolla Cross 2024 скоро появится на вьетнамском рынке. Фото: Toyota Motor Thailand.

Sales consultants also predict that the 2024 Toyota Corolla Cross will not have a significantly different price compared to the current model. If this is the case, the Toyota Corolla Cross will remain one of the most expensive urban SUVs in the mass-market segment in the Vietnamese market, along with the Honda HR-V and Nissan Kicks.

The introduction of new models like the Mitsubishi Xforce and Omoda C5, as well as the arrival of the 2024 Toyota Corolla Cross, is expected to boost the urban SUV segment. Automakers seem to have anticipated the upcoming sales competition in this segment, with many launching incentive campaigns or directly reducing the list prices of their models.

Although the Vietnamese automotive market has had a relatively slow start, the arrival of new models like the Mitsubishi Xforce and Omoda C5 brings optimism for an improvement in sales performance in the remaining months of 2024.

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