Strong Car Sales in Dec Gear up 2006 Growth

The Vietnam Automobile Manufacturers Association (VAMA) has announced that car sales of its 16 members in 2006 rose 2 per cent on year to 40,853 units, principally thanks to strong sales in December.

 

December’s selling volume increased 62 per cent on month and 27 per cent on year to 6,134 units, the VAMA said through its sales report.

 

VAMA chairman Udo F. Loersch said in a statement that the growth was mainly contributed by the sales of sport utility vehicles (SUV) and multipurpose vehicles (MPV), with 63 per cent increase against December 2005 to 2,886 units.

 

The 17 per cent growth in sales of commercial cars, SUVs and MPVs lifted the 2006 overall sales figure by 2 per cent, he added.

 

December was the first time 2006 sales of surpassed those of 2005, and was also the first in three years VAMA saw an on-year annual sales increase.

 

In 2005, VAMA’s members sold 35,264 vehicles; 40,141 units in 2004 and over 42,000 units in 2003. However, in these years VAMA had only 10 members.

 

“The high sales growth results from attractive sales promotion programs by carmakers in the country,” a car trader in Hanoi said.

 

“Ford, Vidamco, Mercedes-Benz, Mekong Auto and other companies have given generous discounts or gifts to buyers,” he added.

 

For example, US-led Vidamco is offering a rebate ranging US$400 to US$4,000, depending on the model, for its vehicle buyers while Mercedes-Benz is presenting LCD TVs for buyers of its C-Class sedans.

 

A Hanoi-based car trader said the recent government decision to limit the purchase of mission cars for State-funded organizations and corporations has seriously affected sales growth in the year.

 

In addition, many potential buyers have delayed plans to purchase cars with the hope that prices will fall after Vietnam opens its market for imported vehicles following WTO entry.

 

Japanese-led Toyota Vietnam remains the largest carmaker with sales of 2,569 cars in December, totaling 14,784 units in the year, accounting for 36.2 per cent of the market share, followed by Mitsubishi-led Vinastar with 1,075 units and 3,398 units, and Vietnamese-invested Truong Hai Auto with 517 units and 5,354 units.

 

Vinastar enjoyed the highest on-year growth in December, 195 per cent, but the country’s largest carmaker Toyota reported the highest sales rise in the January-December period with 25 per cent.

 

Mercedes-Benz suffered the worst sales in December with drop of 84 per cent while Vidamco was the worst seller in 2006 with a fall of 61 per cent.

 

* The following table details car sales, market shares and the growth of the 16 VAMA carmakers in December and in 2006.

 

No.	Maker	Dec 06			Jan-Dec 06
		Sales (units)	Share ( per cent)	On-year growth ( per cent)	Sales (units)	Share ( per cent)	On-year growth ( per cent)
1	Toyota	2,569	42	45	14,784	36.2	25
2	Truong Hai	517	8	21	5,354	13.1	24
3	Ford	403	7	-37	3,610	8.8	-28
4	Isuzu	233	4	28	2,344	5.7	9
5	Vinaxuki	183	3		2,393	5.9
6	VinaStar	1,075	18	195	3,398	8.3	-19
7	Mercedes-Benz	35	1	-84	1,202	2.9	-29
8	Visuco	242	4	-20	1,807	4.4	-46
9	Vidamco	183	3	-36	1,634	4.0	-61
10	VMC	86	1	-77	659	1.6	-37
11	Mekong	74	1	-1	597	1.5	17
12	Hino	45	1	67	613	1.5	13
13	Vindaco	27	0	-67	530	1.3	17
14	Vinacomin	59	1		340	0.8
15	Samco	80	1	19	478	1.2	-11
16	Honda	323	5		1,110	2.7
	Total	6,134	100	27	40,853	100	2

 

Note: Truong Hai Auto makes Chinese-originated Thaco-trademarked trucks, Vinastar (Mitsubishi), Vinaxuki (Chinese Jinbei cars), Vidamco (GM-Daewoo), Visuco (Suzuki), VMC (Mazda, BMW, Kia), Vindaco (Daihatsu) and Mekong Auto (Fiat, Ssanyong, PMC). (VAMA Release, Vietnam Panorama)