Sales of domestically-assembled cars overwhelm imported vehicles
Sales of domestically-assembled cars overwhelm imported vehicles
A total of 23,065 automobiles were sold in the domestic market in May, up 9 per cent against the previous month, the Vietnam Automobile Manufacturers’ Association (VAMA) said.
Sales of passenger cars increased 13 per cent, with 15,397 units sold. Meanwhile, 6,890 commercial and 778 special-purpose vehicles were sold in May, representing a decrease of 8 per cent and 36 per cent, respectively.
In terms of origin, the number of domestically-assembled vehicles sold stood at 19,467 units while 3,598 imported automobiles were sold, representing month-on-month increases of 9 per cent and 12 per cent, respectively.
According to VAMA, as many as 103,746 vehicles of all types were sold in the domestic market in the first five months of 2018, down 6 per cent over the same period last year.
Sales of passenger cars saw an annual rise of 6 per cent while commercial and special-purpose vehicle sales suffered year-on-year declines of 19 per cent and 37 per cent, respectively.
In the period from January to May, a total of 87,426 domestically-assembled vehicles were handed over to buyers, up 10 per cent against the same period last year. Sales of imported automobiles dropped 46 per cent to 16,320 units.
According to experts, the drastic dive in the sale of imported cars in the five-month period was due to the failure of businesses to comply with procedures required under the government’s Decree No 116/201/ND-CP, which stipulates the conditions for production, assembly, import, and business of automobiles, as well as warranty and maintenance services.
No cars were imported into Viet Nam in the first two months of 2018, according to VAMA.
In March 2018, only Honda Viet Nam was able to import its first batch of automobiles subject to zero per cent import duty under the ASEAN Free Trade Agreement (AFTA), which became effective January 1, 2018. These cars were put up for sale by late April.
In April, GM Viet Nam imported a batch of Chevrolet Trailblazers for distribution. The cars were put up for sale in early May.
Various models of popular brands such as Toyota, Ford, Chevrolet, and Suzuki will be imported into Viet Nam in late June and July, and is expected to create fierce competition between domestically-assembled and imported cars.
