VietNamNet Bridge – After the Ministry of Transport gave a written reply that the fee collection to restrict private vehicles still cannot be implemented in the immediate time, automobile manufacturers have reported an increase in car sales.

The answer of the transport ministry that it would take more time, possibly several years, to research on the issue, consider the fee collection plans and bring the policy into the world--is really the enjoyable news for automobile manufacturers and buyers.

Market prospers

According to the Vietnam Automobile Manufacturers’ Association (VAMA), the total number of cars sold by the association’s members in July 2012 was 6737, an increase of 1255 cars over June (5482 cars). The figure does not include the sales of the cars imported under the mode of complete built unit (CBU).

Truong Hai led the automobile manufacturers in terms of the number of cars sold (1997), up by 110 cars over the last month. Toyota ranked the second with 1727 cars sold, an increase of 65 cars over June (1662).

Ford Vietnam sold 437 cars in June, and 470 cars in July. Honda Vietnam sold 166 cars in July, higher than the sales of 111 cars in June.

Especially, GM Vietnam made a breakthrough in car sales with 471 cars sold in July, nearly double that of June (262).

With 1255 cars sold more in July, VAMA believes that the automobile market is warming up. The main factor that has helped activate the market again, according to VAMA, is the information that the Ministry of Transport would not collect the fee to restrict private vehicles in the next few years. The ministry has also committed that the fee collection would be implemented only with the agreement of people.

The information about the fee collection, which makes it more costly to keep a car, has been described as the “psychological burden,” and once the burden is lifted, people would feel more secure to buy cars.

In fact, the car market has warmed up also partially thanks to the big sales promotion campaigns launched by manufacturers. GM saw the sharp rise of the car sales in July partially because of the sales promotion campaign commencing from July 9, under which the buyers of Chevrolet models would receive the gifts valued up to 120 million dong.

The program finished on July 31.

Ford Vietnam has also seen the number of sold cars increasing after it decided to apply a new sales policy, under which showrooms open until 0 am of the next morning, and offered the price discounts of 8-137 million dong for the buyers of Mondeo, Everest, Focus, Escape, Fiesta and Transit. Truong Hai also regularly offers gifts worth hundreds of millions of dong to those who buy the cars with nine or fewer seats.

After a period of fasting their belt to overcome difficulties by cutting down the spending from the state budget, state management agencies are now allowed to buy cars for public services again, thus bringing a new considerable amount of clients to the car market.

Only sales promotion campaigns would help boost sales

Observers have said the auto market is entering the high sales season of the year. VAMA has predicted that about 100 cars would be sold in 2012, an increase of 20,000 cars in comparison with the initially predicted figure.

However, automobile manufacturers think that in the current circumstances, people would still keep practice thrift, which means that the automobile production would not be able to recover from the current stagnation soon.

Therefore, in order to boost sales, they would have no other choice than offering attractive price discounts and gifts.

Tran Thuy