Vietnam October Car Market: Highest Sales in 2005

According to figures released by the Vietnam Automobile Manufacturers Association (VAMA), car sales by 11 foreign-led carmakers hit 3,358 units in October, an increase of 407 units against September. This is the largest sales volume in 2005.

 

Between January and October of this year, foreign car joint ventures sold 28,381 cars, compared with 27,310 units of the same period in 2004. Toyota led the market with total sales of 9,391 cars, holding 33.1 per cent of the market share, followed by Ford, Vidamco and Vinastar. However, the October car sales were much lower than those in October of 2004. According to VAMA, the alarming car sales drop is resulted from rumours of sharp decreases in car prices in 2006 when the government reduces taxes on imported cars. As a result, potential car buyers are waiting for a price drop. After witnessing high on-year monthly rises in car sales from January to July (except for February), car sales began dropping from August. Car sales volume in August, September and October of 2005 were 2,858, 2,951 and 3,358 units, down 321 (10 per cent), 481 (14 per cent) and 1,505 (31 per cent) units against the same months of 2004, respectively.

 

In November, Toyota still led the auto market with 1,109 cars sold, up 234 units against September. Ford and Vinastar sold 667 cars and 517 cars, respectively keeping the second and third places, followed by Isuzu, Visuco and Vidamco. Hino, Mekong and Vindaco only sold between 38 and 50.

 

In October, foreign carmakers sold 1,144 sedans of less than five seats and 1,525 cars of 6-15 seats. Toyota Zace sedan is the best seller with 457 units sold, followed by Ford Everest (334 units) and Vinastar’s Mitsubishi Grandis (306 units). Car models with sales of between 100 and 200 units include Toyota Vios, Toyota Corolla, Toyota Camry, Vinastar’s Mitsubishi Jolie, Mercedes Sprinter and Vidamco’s Daewoo.

 

No matter how rumours of next year’s price fall may affect the car market, the car sales will remain on the rise because the demand for the motorized four-wheelers is actually high. As a result, the rumours will not have much negative impact on businesses of carmakers.