Carmakers Raise Output in Hopes of Higher Sales

Automakers in Vietnam increased their output in December after sales increased in recent months, a government source said.

 

Car sales by the 16 member carmakers of the Vietnam Automobile Manufacturers Association (VAMA), now dominating the Vietnamese auto market, rose 23 per cent on-year but down 6 per cent on-month in November to 3,807 units, following difficult import of used cars into the country.

 

“The positive sales figures have encouraged us to boost production,” a carmaker said.

 

December’s Vietnamese car output was up 11.9 per cent on-year and 15.41 per cent on-month to 4,815 units, the General Statistics Office (GSO) said.

 

However, in 2006, automakers turned out 41,557 units, down 26.2 per cent on year, principally due to the sharp drop early this year when domestic consumers pinned strong hopes on cheap used vehicles.

 

According to the GSO, foreign-led carmakers still dominate the Vietnamese automotive industry with production of 30,555 units this year (down 28 per cent) and 3,380 units in December (down 2.6 per cent), followed by non-State firms with 7,556 units (up 10.2 per cent) and 864 units (up 68.4 per cent) and State-owned firms with 3,446 units (down 50.9 per cent) and 571 units (up 79 per cent).

 

With a fledging auto industry, all carmakers in the country have to import parts for production. Carmakers in Vietnam are predicted to spend $497 million on car components this year.

 

Last year, the auto industry turned out nearly 65,000 units, up over 30 per cent on-year.