Vietnam’s car market cools on Covid-19
The domestic car market is gloomy as people are not making purchases despite the sharp price falls.
The Vietnam Automobile Manufacturers' Association (VAMA) reported a 27 percent decrease in the total number of cars sold in the last two months. The sales of cars with less than 9 seats saw the sharp decline, 30 percent, compared with the same period last year.
Automobile manufacturers have seen the number of cars sold decreasing by 13,200 because the demand has decreased during Covid-19.
As for the cars with less than 9 seats, 25,000 products were sold in the last two months, a decrease of 11,200 products compared with the same period last year.
The number of cars imported by Vietnam in the first two months of the year decreased by tens of thousand of products because of Covid-19. Of these, the number of cars from Thailand and Indonesia decreased by 9,800. Some models from the two markets saw a sharp 60 percent decrease.
|The number of cars imported by Vietnam in the first two months of the year decreased by tens of thousand of products because of Covid-19. Of these, the number of cars from Thailand and Indonesia decreased by 9,800. Some models from the two markets saw a sharp 60 percent decrease.|
There were 8,000 products from Thailand (- 8,400), and 5,100 products from Indonesia (- 1,400).
According to the General Department of Customs (GDC), 14,450 cars arrived in Vietnam in the first two months of the year, or 11,175 products lower than the same period last year. This included 10,600 cars with less than 9 seats, a decrease of 7,154 products.
The sharp sales fall was seen in most product lines. As for sedans, the key product line, only 12,200 products were sold, a decrease of 1,600.
Toyota Vios remains the best seller with 4,000 cars sold, followed by Accent of Hyundai Thanh Cong (2,900), Hyundai i10 (2,700) and Mitsubishi Xpander (2,200).
In addition to the three models, some others also saw good sales (more than 1,000 products sold), namely SantaFe and Tucson of Hyundai, Cerato and Soluto of Kia.
Meanwhile, many manufacturers and car importers reported unsatisfactory sales in the last two months.
Only 930 Honda CRV imported from Thailand were sold, a decrease of 2,800 products. 211 Rangers were sold, a decrease of 1,900.
The third model with unsatisfactory sales was Mazda CX5, a domestically assembled model, with just 800 products sold, decreasing by 2,000 products.
In early March 2020, a series of models which are the key products bringing highest turnover to manufacturers, such as Toyota Fortuner, Honda CRV, Ford Everest and Explorer began decreasing in prices. The decreases were between VND30 million and VND270 million.
The car market is the favorite of small-size MPVs which are fashionable, reasonable in price and multi-purposed.
Xpander of Mitsubishi is leading the market segment with 20,000 products sold in 2019, followed by Innova of Toyota with 12,000 cars sold and Mazda CX5 with 10,200.
Vietnam still has to import car parts for domestic assembling. As a result, the production cost is high and domestically made products remain less competitive than imports.
Automobile importers in Vietnam will no longer have to obtain a Vehicle Type Approval (VTA) certificate from authorities in exporting countries, making it easier for them to import cars into the country.