Auto Sales Fall 25 per cent in First 7 Months Despite Strong Recovery in July

Auto sales in Vietnam fell by 25 per cent against the same period last year to 58,748 units in the first seven months of 2009 despite a sudden rise of 26 per cent in July, the latest statistics of the Vietnam Association of Automobile Manufacturers (VAMA) showed Tuesday.

 

On-year decrease was led by sales of commercial vehicles, which were down 33 per cent from a year ago to 30,396 units. Passenger car sales, meanwhile, dropped 5 per cent to 14,141 units in the period, according to the statistics.

 

Domestic automakers witnessed strong sales of 10,839 units in July, compared to only 8,592 units they sold in the same month last year, the association said.

 

Two segments that were major drivers for growth last month are commercial vehicles which grew 35 per cent from last July to 5,338 units; and passenger ones which rose 41 per cent to 3,191 units.

 

Foreign and domestic manufacturers that reported a rise in auto sales included Toyota Vietnam, Ford Vietnam, GM Daewoo, VinaStar (Mitsubishi), Samco, Truong Hai, Vinaxuki and Vinacomin-Vinacoal.

 

Toyota still led the market with total sales amounting to 2,786 units, up 14 per cent. Followings are GM Daewoo with 1,358 units, up 87 per cent; Ford Vietnam with 582 units, up 27 per cent; and VinaStar with 262 units, up 49 per cent.

 

In the month, domestic producers Vinacomin-Vinacoal and Vinaxuki posted 280 per cent and 96 per cent on-year increases in sales to 19 units and 976 units, respectively. Samco and Truong Hai sales leapt 200 per cent and 80 per cent on-year to 27 units and 2,007 units, consecutively.

 

Automakers attributed the improvement in car sales to the Government’s proactive measures such 50 per cent VAT and 50 per cent ownership tax reductions. Another reason for the pick-up is that interest rate on car loans is down to 10.5 per cent per annum.

 

Domestic auto market, however, was not rosy for multi-purpose and sport utility vehicles which declined 2 per cent from last July to 2,310 units, according to VAMA.

 

As the general market outlook is positive, automakers are racing to launch new versions of their existing best-selling models to attract customers.

 

Vietnam was estimated to have spent US$512 million importing 30,700 cars under the mode of complete built unit (CBU) in the period, down 36.7 per cent in value and 28.7 per cent in volume on-year.

 

Following table is the breakdown of car sales, market shares and the growth of the 16 VAMA carmakers in January-July 2009.

Carmaker		Sale (Unit)	On-Yr Growth
Mekong (Fiat, Ssangyong, PMC)		479	-64 per cent
VMC (BMW, Mazda, Kia)		600	87 per cent
GM Daewoo		6,284	-17 per cent
VinaStar (Mitsubishi)		1,735	-11 per cent
Mercedes-Benz Vietnam		1,621	24 per cent
Visuco (Suzuki)		1,052	-48 per cent
Toyota		13,693	-9 per cent
Isuzu*		1,719	-28 per cent
Ford		3,281	-24 per cent
Hino*		954	-46 per cent
SAMCO		221	-38 per cent
Truong Hai		10,940	-17 per cent
Vinacomin - Vinacoal*		113	-50 per cent
Vinaxuki		5,170	-14 per cent
Honda		2,190	-50 per cent
Vinamotor*		8,696	-45 per cent
Total		58,748	-25 per cent

(VAMA August 2009)