A strong recovery in the auto market is expected in the fourth quarter of 2020. — Photo tinnhanhchungkhoan.vn

Automobile companies are accelerating fast to reach their annual targets after facing difficulties in the first half of the year.

The latest report on the industry by Bao Viet Securities Company (BVSC) said automobile consumption in Viet Nam has recently recovered with a car sale reduction of only 5 per cent in the third quarter of 2020 compared to 31 per cent in the first quarter.

In October, car sales reached 33,254 units, up 22 per cent month-on-month and up 15 per cent year-on-year, thanks to good sales growth in both passenger and commercial vehicles.

The volume of domestically assembled vehicles was also positive in October, reaching 20,498 units, up 25 per cent year-on-year, mainly thanks to Government's incentive policy of cutting registration fees by 50 per cent. The volume of imported cars also inched up by 2 per cent year-on-year to 12,756 units.

In the first 10 months of the year, total car sales volume reached 2,409 units, down 18 per cent compared to the same period last year.

BVSC expected a strong recovery in the auto market in the fourth quarter of 2020, buoyed by rising demand for locally assembled vehicles in the wake of promotion programmes and launching of new models in the peak season of car sales in the country.

 

Buyers are also rushing to own cars to enjoy the registration fee reduction before the policy is due to finish at the end of this year.

Automobile companies such as Haxaco, Savico, VEAM, City Auto, and DRC are showing positive business results.

Do Tien Dung, General Director of Haxaco, told tinnhanhchungkhoan.vn that this year, the company aimed to earn a profit more than VND66 billion. But it is estimated that it can reach VND110-120 billion, far exceeding the set target. Haxaco reported a pre-tax profit of VND65 billion in the third quarter of 2020.

Savico's business results in the third quarter also recorded positive recovery after facing many difficulties in the previous two quarters. It reported a profit of VND66.8 billion in the third quarter, 4.3 times higher than the second quarter and up 43.3 per cent compared with the same period last year.

With the recovery and positive market movements, the automobile industry is forecast to grow in 2021 when the domestic consumption demand is expected to rise. — VNS

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