Vietnam’s auto sales for the first time reached the positive growth and even saw a jump in July. Tax and fees preferential policies have brought about a fever in the domestic demand, but also made the auto import market more exciting. This has also resulted in a sharp increase in the auto import over the past recent months.
Locally-made autos sold like hot cakes
Representatives from auto salons said, they have seen a sudden rise in buyers recently, making the auto market become hot. The owner from an auto salon in Kim Ma Street, Ba Binh district, Hanoi, said each salon often receives 25-30 autos for sales per month, but the figure is still far to meet the real demand.
Besides, according to a report from the Vietnam Automobile Manufacturers’ Association (VAMA), its members sold 10,839 autos in July, up 26 % on-year.
The association said, sales of sport utility and multipurpose vehicles has partially recovered with a just slight decline of 2 % on-year to 2,310 units. Meanwhile, sales of commercial cares increased 35 % on-year at 5,338 units, and sales of passenger care grew 41 % at 3,191 units. After months of slump, Vietnam witnessed a soar in car sales in July.
This was the fourth successive month that Vietnam saw higher sales of passenger cars than multipurpose ones. This was also the first time that sales of passenger car reached more than 3,000 units, which showed different segments of the Vietnamese auto market.
However, it was a small sign to warm up the domestic auto market. In the first seven months of this year, VAMA members sold 58,748 cars, down 25 % from a year ago.
Moreover, VAMA said, the “fever” in the local demand was not due to people’s real demand, but their purpose to enjoy tax priority for car purchase. Car buyers will be offered a 50 % cut of ownership registration tax and VAT reduction of 50 % also before December 31 this year. Analysts said the “fever” will be a good chance for speculators.
Imported cars flooding Vietnam
Vietnam has not only seen the fever for locally-made cars but also imported ones. According to the General Statistics Office, the number of imported autos in July was 1,700 units higher than the estimated figure. Value of the imported cars was also US$12 million higher than the initial estimation. Compared to June, the number of imported cars in July increased by 700 units, equivalent to the growth rate of 24 % and import value of US$20 million.
Along with the gap between demand and supply, Vietnam imported more auto spare parts in July, raising the total auto import value to US$297 million in the month, US$36 million higher than June.
Around 8,000 autos worth US$115 million has been imported into Vietnam in August. In addition to small and popular lines, luxury cars are flocking into Vietnam. The Vietnamese auto market often continues exciting in the four remaining month of every year, expected to witness new impressive figures.
VAMA forecast that Vietnam could consume 100,000-110,000 units of different types of car this year. Based on the current high demand, the figure is expected to reach 140,000 units. However, the limited supply source fails to meet the increasing demand. This is explained by car makers’ production cut due to the demand fall since late 2008. Therefore, it is important to control the auto market to prevent the speculation, high fever as well as massive car import at present.
Huy Hieu
Vietnamese
