Car sales driven by incentives, imports up as well
Car sales driven by incentives, imports up as well
New car sales in Vietnam has soared to their highest level in three years, lifted by a brighter outlook for the economy, attractive financing deals, price discounts, and reduced car registration fees.
The country's 18 leading carmakers sold a combined 9,785 units in September, up 24 percent over a month earlier and 28 percent over same period last year, according to the Vietnam Automobile Manufacturers Association (VAMA).
Of the figure, 4,070 units were cars and 5,715 units were trucks, up 32 percent and 19 percent month-on-month, respectively, said the association which represents 18 carmakers.
"This is the sixth consecutive month the industry volume has been higher than the same period last year," said VAMA chairman Jesus Metelo Arias in a statement released on October 10.
"With the current trend of recovery in the industry we still maintain the forecast of 109,000 units compared with the original forecast of 100,000 units at the beginning of the year," he added.
Besides attractive financing deals, price discounts and reduced car registration fees, which were applied from the beginning of this year, a brighter economic outlook was attributed to the surge in car sales.
According to a recent World Bank report, Vietnam's economic growth rate will reach 5.3 percent in 2013 and 5.4 percent in 2014, while its inflation rate will be at 8.2 percent at the end of 2013.
The bank said Vietnam's macro economy is relatively stable thanks to the government's proper financial and monetary policies intended to stabilise the economy.
Meanwhile, September's increase of car sales was also attributed to the traditional shopping peak towards the end of the year, which usually begins in mid-September.
In order to trigger the market, which fluctuated following the economic slowdown, most carmakers have reduced retail prices by 5 million VND (240 USD)-70 million VND (3,330 USD).
While Nissan cut prices for its compact Sunny sedans by between 5 million VND (240 USD) and 28 million VND (1,330 USD) depending on version, Toyota previously cut its Vios compact sedans by 30 million VND (1,430 USD).
Also in the compact segment, Ford reduced its Fiesta 1.6L model by 28 million VND (1,330 USD)-525 million VND (25,000 USD) for the 4-door version, and by 26 million VND (1,240 USD)-580 million VND (27,620 USD) for its 5-door version.
Bigger cars also experienced sharp price cuts, such as Toyota Camry by 40 million VND, while Toyota Altis, Honda Civic and Ford Focus saw a cut of 20 million VND (930 USD) each.
The biggest discount came from the Korean-made Kia Sorento at 70 million VND, while the two other Kia brands, the New Carens and Picanto, saw cuts of 10 million VND (480 USD) and 5 million VND, respectively.
Instead of direct price cuts, other carsmakers are offering buyers many promotional gifts, such as free car insurance, free car tuning packages and instalment purchases with preferential interest.
Meanwhile, Vietnam imported 3,000CBU (Complete Built Unit) cars worth 55 million USD in September, up 33 percent in volume and 18 percent in value in August, according to the General Department of Customs.
This brought the total number of automobile imports in the first nine months to 24,000 units worth 476 million USD, up 22.5 percent and 6.1 percent respectively.
Customs statistics showed that Vietnam's auto imports decreased to a six-year low last year, reaching only 27,000 cars in 2012, down 50 percent on 2011.
vir
