Scooter Makers Rein Supply to Keep Price High

11:21:26 AM | 9/4/2007

Scooter makers in Vietnam are reportedly trying to limit the supply to traders to make a fever in the country.
 
Customers find it hard to purchase scooters immediately at authorized dealerships, making the demand stronger on the market.
 
Nguyen Hoang Nam, a Saigonese, said he registered to buy a Honda Air Blade since May at three different Honda head shops but the delivery has not been confirmed.
 
A Honda agent said his shop received no more than 15 Air Blade a month but the number of depositors is no less than 50.
 
Many have to accept to pay around 10 per cent higher to own the vehicles immediately at unauthorized shops, Tien Phong Newspaper said.
 
At present, the actual price has already gone up in most models. Even, imported scooters like PS and SH have been added US$200-500 to the price compared with several months ago although the tax has been reduced 10 per cent.
 
Generating a fever in a weak-demand period is possibly a policy of vehicle makers in the country, a market expert said. Normally, the supply increased strongly from mid-September to February.
 
Dinh Quang Tuan, marketing director of Yamaha Vietnam, said his company is surprised with the sales growth of 30 per cent, higher than initially expected 20 per cent.
 
Honda Vietnam, which keeps around 60 per cent of the market share, said its supply cannot meet the demand at the moment.
 
Both Honda and Yamaha have recently started work to build scooter production factories in northern Vietnam with annual capacity of 500,000 units each.
 
Phi Thi Minh, a motorbike trade in Ho Chi Minh City-based Ly Tu Trong market, said “I don’t know how motorbike companies are doing. I only received seven or eight Honda Air Blade a month.”
 
“The higher price is, the shorter the supply is,” a richly experienced trader in Ho Chi Minh City said. (Tien Phong Online)