Freezing Market Drives down Auto Output by Half
Total car output in Vietnam is estimated to decrease 50 per cent on year in January and February of this year to 4,772 units principally due to slow sales, according to the government’s General Statistics Office (GSO).
An authority in the Ministry for Industry said, “Slow sales in recent months have forced carmakers in the country to cut down production.”
“We cannot sell many products since the government decided to the reduce import tariff and special consumption tax on imported new cars because local potential buyers are awaiting deeper slashes in car prices in the coming time,” a local carmaker revealed in sorrow.
In addition, the permission to import used cars from May has further prompted them to delay their purchasing decisions, he said.
Toyota, Ford, Mitsubishi and other carmakers have reduced their car prices and offered handsome sales promotions in an effort to heat up the Vietnamese freezing auto market.
However, according to the Vietnam Automobile Manufacturers Association (VAMA), 11 operational foreign-led carmakers in Vietnam suffered a 36 per cent drop in sales in January to 1,517 units.
With a fledging auto industry, all carmakers in the country have to import parts for production. They spent around US$96.6 million on car parts in January and February of this year.
Last year, the auto industry turned out nearly 65,000 units, up over 30 per cent on year.
GSO
Vietnamese
