Vietnam vehicle sales down 31 per cent in October
Vietnam vehicle sales down 31 per cent in October
Amid a challenging economic environment, Vietnam's auto sales continues their downward trend, falling 31 per cent from a year earlier in October.
According to the Vietnam Automobile Manufacturers’ Association (VAMA), total auto sales in October stood at 25,369. The October 2023 volume is the same as in September 2023, and down 31 per cent versus October 2022.
The breakdown of vehicle sales in October was as follows: 19,624 passenger cars, down 0.2 per cent; 5,604 commercial vehicles, up 1 per cent; and 141 special-use vehicles, down 14 per cent on-month.
The VAMA also pointed out that sales of domestically assembled automobiles reached 16,414 units, down 1 per cent on-month, while the number of imported completely built-up (CBU) autos was 8,955, up 2 per cent on-month.
In the first 10 months of this year, VAMA members sold a total of 235,296 vehicles of all kinds, down 29 per cent from 2022. Of this amount, passenger cars experienced a 32 per cent decrease, while commercial vehicles and special-use vehicles declined by 16 per cent and 60 per cent, respectively.
Laurent Genet, general director of Audi Vietnam said, "So far, 2023 is the year with the most massive discounts in Vietnam's automotive history, as all brands need to move their large inventory, especially CBU importers whose incoming stock remains large and could not be reduced due to the long lead time. Low sales will continue this year as long as real estate remains in a slump, real estate companies continue to go bankrupt, construction projects get stalled, and consumer credit is expensive or difficult to get from banks."
Genet added that since June, CBU dealers have not benefited from the 50 per cent registration tax reduction for locally assembled vehicles, which would only benefit local assemblers until December. However, if the current recession continues, its impact on volume will remain limited.
"Cash is king, especially in crisis like now, and local production and assembly clearly benefit from the deferred Special Consumption Tax payments," Genet said. "The arrival of new brands assembling locally together with the launch of new models will support production through to the end of 2023 thanks to the initial stock built-up at launch. It will also benefit imports, as new brands need to extend their range faster by offering CBU models. We estimate the whole automotive market to land at 420,000 vehicles in 2023, and expect it to bounce back growing by 11 per cent in 2024."
