Imported cars increase, domestic car production declines

VCN- Facing an influx of imported cars at competitive prices, business results of automobile manufacturers in Vietnam are gradually exhausted in October.
imported cars increase domestic car production declines Auto market filled with gloom despite falling prices
imported cars increase domestic car production declines Vietnam imports 120,000 cars in ten months
imported cars increase domestic car production declines
Mazda 3 has just been launched inthe market. Photo NguyễnHà

Domestic car production gradually falls

The latest report of the Vietnam Automobile Manufacturers Association (VAMA) showed that more than 28,900 cars were sold in Vietnam in October, an increase of only 4.3% compared to September. Ofwhich, over 70% are passenger cars with fewerthan 9 seats, with 21,355 cars, an increase of 2% compared to the previous month; the remaining are 7,228 commercial vehicles, up 11% and 365 specialized vehicles, up 14%.

Generally, in the firstten months of 2019, VAMA’s members consumed a total of 259,282 vehicles of all kinds, an increase of 16% compared to the same period last year. In particular, tourist cars reached 190,049, up 26%; commercial vehicles reached 64,751, down 2%; tourist cars were4,482, down 27% compared to the same period last year.

In October 2019, passenger carsincreased rapidly (over 26%)and other vehicles decreased compared to the same period last year.

If we have a more detailed analysis, we will find a worrying trend for domestic assembly production. In October, sales of locally assembled vehicles continued to decline, there were only 16,406 units sold to the market, down 3% compared to the previous month. Meanwhile, the volume of imported cars was 12,542 units, up 16% compared tothe previous month.

imported cars increase domestic car production declines
There are many new models of imported cars flooding the Vietnamese market. Photo Nguyen Ha

This is the third month that sales of domestically-assembled vehicles decreased (12% compared to the same period last year), while imported cars increased by 118% over the same period last year.

At the end of October 2019, 153,100 domestic assembled cars were sold, down 21,600 units compared to the same period last year,while imported cars sold more than 106,000 units, an increase of 57,400 units compared to the same period last year.

This is a fact that was predicted because imported cars were no longer "entangled" by the regulations related to Decree 116, which quickly flooded many new models, with especially competitive prices asthese products enjoy 0% import tax from regional countries.

Price dropped sharply

In terms of automobile brands, the market leader in sales last month continued to be Toyota with 7,216 cars delivered to customers; Mitsubishi suddenly rose to second position with 3,566 cars, Ford ranked third with 3,144 vehicles and Hondacame fourth with 3,058 vehicles, other brands have had good sales but last month werein last place, such as Kia and Mazda with sales of 2,683 and 2,515 vehicles, respectively.

However, the report of salesofVAMA does not fully represent the whole Vietnamese automobile market because this is the result of VAMA enterprises. Even some members of VAMA do not publicly announce their sales such as Mercedes-Benz andVinFast.

This figure does not include the results of the TC Motor, while this is currently the business with the largest number of passenger cars sold in the market. In October TC Motorbrandwhich sold 7,737 units, bringing the total sales in the first ten months of 2019 to 63,210 vehicles of all kinds. In October,combining the announced figures of VAMA and TC Motor, Vietnam's auto market consumed 36,686 cars, in ten months of 2019, there were 322,492 cars.

On the other hand, there are many sales results of other brands such as Audi, Jaguar, Land Rover, Subaru, Volkswagen and Volvo thathave not been includedhere.

imported cars increase domestic car production declines
The auto market will be positive at the end of the year. Photo Nguyen Ha

However, the salesresults of October did not reach the expectations of businesses after a series of promotions and deep discounts; especially after the biggest auto show of the year.

Many comments show that Vietnam's automobile market will accelerate in the last months of the year.This is the peak season for automobile procurement in Vietnam. Especially, in the context of companiesracing to reduce the price of vehicles, especially domesticproducts because of inventory.

By Nguyen Ha/Quynh Lan

Related News

Many cases related to production of fake food prosecuted

Many cases related to production of fake food prosecuted

VCN - The production of fake food products has become more complicated. The Environmental Crime Prevention Police Department (C05, Ministry of Public Security) has proactively taken measures to combat, prevent and prosecute many violations.
Vietnam and Japan promote cooperation

Vietnam and Japan promote cooperation

VCN - On August 28, Deputy Prime Minister and Minister of Finance Ho Duc Phoc had a working session with the Japanese Senate delegation led by Mr. Nakanishi Yusuke, Senator of the Liberal Democratic Party.
Close cooperation between Vietnam and the EU in sustainable development

Close cooperation between Vietnam and the EU in sustainable development

VCN - EuroCham will closely collaborate and share experiences with various sectors in Vietnam to promote green economic development and sustainable growth.
Green energy goals still face many challenges

Green energy goals still face many challenges

VCN - Green development, energy transition, and emission reduction are inevitable trends that Vietnam cannot stand aside. This is also an opportunity to develop and restructure the economy towards green, clean, and sustainable. However, green energy transition in Vietnam still faces many challenges. Dr. Vo Tri Thanh, Director of the Institute for Brand Strategy and Competitiveness, shared about this issue.

Latest News

Footwear industry takes bold steps towards green growth

Footwear industry takes bold steps towards green growth

Vietnam is discussing the establishment of a centre for raw materials to support the textile, leather and footwear industries, signalling a bold effort for the billion-US-dollar sectors to enhance sustainability and climb higher up the global value chain.
Vietnam likely earn 5 billion USD from rice exports this year

Vietnam likely earn 5 billion USD from rice exports this year

Vietnam’s rice exports are expected to reach a record turnover of about 5 billion USD this year, as high demand from many large and traditional markets, such as the Philippines and Indonesia, continues.
Australian plums to be available in Vietnam

Australian plums to be available in Vietnam

Australian plums will soon be on shelves in Vietnam under the two-way agricultural market access agreement between the two countries that brings Australian plums to Vietnam and Vietnamese passion fruit to Australia, according to the Australian Government.
How to quarantine imported aquatic products for domestic consumption?

How to quarantine imported aquatic products for domestic consumption?

VCN - Enterprises importing aquatic raw materials for export production or export processing for domestic consumption encounter difficulties in implementing quarantine.

More News

Vietnam trade mission in Germany seeks cooperation in automobile industry

Vietnam trade mission in Germany seeks cooperation in automobile industry

The Vietnam trade mission in Germany coordinated with the Berlin – Brandenburg automotive association (aBB) and authorities of the Vietnamese province of Nam Dinh to hold a roundtable on cooperation in the automobile industry.
New markets help fruit exports grow to record revenues

New markets help fruit exports grow to record revenues

Vietnam's fruit export revenue hit 4.63 billion USD in the first eight months of 2024, representing an increase of 30.6% compared to the same period last year, thanks to the opening of several key markets.
Vietnam aims for green, sustainable tourism

Vietnam aims for green, sustainable tourism

VCN - Green tourism is increasingly gaining attention and becoming an important development direction for many countries, including Vietnam. Green tourism will be an important lever for developing a green economy, helping green growth, towards the goal of achieving Net Zero (net zero emissions) by 2050.
Enhancing the role of localities in developing supporting industries

Enhancing the role of localities in developing supporting industries

VCN - Some localities with great potential for developing supporting industries have proactively issued their own policies to support businesses in training human resources, helping businesses access the global production chain.
Mekong Delta promotes clean agricultural production to achieve Net Zero

Mekong Delta promotes clean agricultural production to achieve Net Zero

Localities in the Mekong Delta region have been progressively developing roadmaps for clean agricultural production as an effort to gradually guide Vietnam's agricultural sector towards the goal of "Net Zero" by 2050.
Wood export target of 15.2 billion USD feasible, challenges remain

Wood export target of 15.2 billion USD feasible, challenges remain

Despite market recovery, the wood industry needs to overcome formidable challenges to realise the export revenue target of 15.2 billion USD for the whole year, according to insiders.
Serious shortage and many impacts on seaport human resources

Serious shortage and many impacts on seaport human resources

VCN - According to the assessment of seaport enterprises in Vietnam, from 2024-2028, human resources at seaports will have strong changes in demand, due to the impact of technological trends to meet the task of developing the seaport economy in Vietnam.
Exports gain momentum

Exports gain momentum

VCN - With a highly open economy like Vietnam, exports are an important driving force for economic growth. In many major markets, the recovery in year-end consumption of goods creates more room for industries to contribute to export turnover.
The driving force for businesses to "sprint" at the end of the year

The driving force for businesses to "sprint" at the end of the year

VCN - Although the economy has shown many signs of recovery and business results are positive, the difficult period has not yet passed, forcing businesses to continue to make efforts to "sprint" in the last months of 2024.
Read More

Your care

Latest Most read
Footwear industry takes bold steps towards green growth

Footwear industry takes bold steps towards green growth

Vietnam is discussing the establishment of a centre for raw materials to support the textile, leather and footwear industries, signalling a bold effort for the billion-US-dollar sectors to enhance sustainability and climb higher up the global value chain.
Vietnam likely earn 5 billion USD from rice exports this year

Vietnam likely earn 5 billion USD from rice exports this year

Vietnam’s rice exports are expected to reach a record turnover of about 5 billion USD this year, as high demand from many large and traditional markets, such as the Philippines and Indonesia, continues.
Australian plums to be available in Vietnam

Australian plums to be available in Vietnam

Australian plums will soon be on shelves in Vietnam under the two-way agricultural market access agreement between the two countries that brings Australian plums to Vietnam and Vietnamese passion fruit to Australia, according to the Australian Government.
How to quarantine imported aquatic products for domestic consumption?

How to quarantine imported aquatic products for domestic consumption?

VCN - At the same time, ensuring state management of imported aquatic products for processing and export to change the purpose of domestic consumption food.
Vietnam trade mission in Germany seeks cooperation in automobile industry

Vietnam trade mission in Germany seeks cooperation in automobile industry

The Vietnam trade mission in Germany coordinated with the Berlin – Brandenburg automotive association (aBB) and authorities of the Vietnamese province of Nam Dinh to hold a roundtable on cooperation in the automobile industry.
Mobile Version