The program is deployed from agents in the form of incentives in cash, accessories, and insurance with a total value equivalent to 50% of the registration fee.
Specifically, many customers have bought a car with a total incentive of nearly 40 million, including 15-25 million in cash, body insurance worth 7-12 million dong and 10-12 million dong of accessories. This total amount introduced by sales staff to customers is equivalent to a 50% discount on registration. This conversion makes it easy for customers to compare with assembled cars, because car sellers are speculating that there will be a 50% discount on registration for locally assembled and manufactured cars.
In addition, to ease the signing of contracts, many salespeople actively reduce an additional 3-7 million in cash. Within the car industry, the fact that employees actively spend money out of their own pocket to reduce customers' costs is called "blood cutting".
Customers can convert insurance to cash, however, accessories will depend on the agent that customers can convert to cash or not. The price difference between agents is mainly in the cash part from 3-7 million dong. The version with the lowest price of 519 million VND if subtracting the program can be negotiated at 480-485 million VND. The deepest discounts at some agents in Hanoi are as follows:
MG ZS STD: 480
MG ZS COM: 534
MG ZS LUX: 579
This is not a genuine stalker. A media representative of MG said that the company implements a program to support interest rates on installment purchases, however, the specific level will only be determined when customers negotiate directly.
The appearance of new small crossovers such as Kia Sonet and the upcoming Toyota Taize makes B-sized cars face great competition. Hyundai Kona, Ford EcoSport must reduce prices. Besides, if the government applies a 50% reduction in registration for assembled cars like what dealers are selling to customers, imported cars like ZS will face many disadvantages. These reasons make ZS have to reduce the price.
Previously, ZS also had a deep discount to push inventory, bringing the price of the standard version to the threshold of 450-470 million VND. This is also the cheapest price in the B-segment crossover. However, the MG brand is still at a slight disadvantage because many customers fear the durability of the car.
In 2020, when returning to Vietnam, ZS imported China, using a 4-speed gearbox instead of CVT like the current version. Currently, the car is imported from Thailand and this car company is planning to sell more MG5 also imported from this market.
Since MG does not provide sales figures, it is difficult to judge the correlation of the ZS with the competition in the segment. However, ZS is also facing many strong rivals such as Kia Seltos or Hyundai Kona. In the near future, in addition to competitors in the segment, ZS will also have to compete with rivals in the money range such as Kia Sonet or Toyota Raize.
MG is a car company originating from the UK, owned by the Chinese car group SAIC. Previously, MG appeared in Vietnam for about 3 months of 2012.
MG returns to Vietnam in mid-2020 with two products, ZS and HS in the B segment and C crossover. With a reasonable price and within the financial range of many customers, ZS has won more attention than HS.
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