Local automobile sales see 20% growth
Local automobile sales see 20% growth
Stable economic development and population expansion in Vietnam are driving the growth of the local automobile market, as seen in the significant surge in car sales, at 202,567 units sold year-to-date, up 20% year-on-year.
Figures from the Vietnam Automobile Manufacturers Association (VAMA) show that automobile sales reached 21,483 units last month, down 19% against the previous month but up 4% against the same period a year earlier.
According to industry insiders, the sales decline results from consumption beliefs rather than market developments as much of last August fell in the seventh month of the lunar calendar, when people tend not to buy high-value products.
As VAMA data showed, more than 147,770 cars were sold in the eight-month period, increasing by 31% year-on-year and accounting for almost three-quarters of total automobile sales.
Meanwhile, commercial vehicles saw a 1.6% drop in the period to over 50,000 units and sales of specialized vehicles fell by 28% to nearly 3,800 units.
VAMA Chairman Toru Kinoshita noted that together with the stable economic development and population growth in Vietnam, the automobile market is expected to expand further, and cars will become more popular.
However, the sales of imported completely-built-up vehicles saw a 178% increase in the eight-month period to 82,823 units. Locally assembled automobiles suffered a 14% decline to 119,744 units.
This trend is forecast to continue in the coming months as import tariffs on automobiles from Thailand and Indonesia have dropped to 0%, making it hard for locally assembled cars to compete.
