VN car market continues to slide

As predicted by experts, the Vietnamese automobile market continues sliding as manufacturers cannot sell products and their production has arrived at a ‘new normal’.

Savico, one of the largest Vietnamese automobile retailers with 10 percent of market share in 2019, had VND3.15 trillion worth of revenue in the first three months of the year, a sharp fall of 25 percent from Q1 2019.

VN car market continues to slide



City Auto reported the net revenue of VND1.1 trillion in the first three months, down by 29 percent. Haxaco, the biggest distribution unit of Mercedes Benz Vietnam, also reported modest revenue of VND920 billion.

The latest report of the Vietnam Automobile Manufacturers’ Association (VAMA) also showed the dramatic fall in car sales. Its member companies in April sold 11,761 products, a decrease of 39 percent compared with March and 44 percent compared with the same period last year.

As predicted by experts, the Vietnamese automobile market continues sliding as manufacturers cannot sell products and their production has arrived at a ‘new normal’.

The number of domestically assembled automobiles also dropped by 38 percent compared with March to 7,400, while the number of imported products was 4,361, down by 40 percent.

 


From the beginning of the year to the end of April, VAMA’s members sold 60,825 products, down by 36 percent. Of these, the sales of cars dropped by 37 percent, while the sales of commercial vehicles by 30 percent and specialized vehicles 36 percent.

Toyota Motor Vietnam in April sold 2,803 products, down by 33 percent compared with April 2019. The decrease of 13 percent has been reproted for cars (Vios, Corolla, Camry, Yaris and Wigo), and a sharp decrease of 50 percent for commercial vehicles (Fortuner, Innova, Rush, Hilux, Land Cruiser, Avanza and Hiace).

A representative of Toyota admitted the sharp decrease in sales since the beginning of the year. Prior to that, in March 2020, Toyota could sell 5,143 products only, down by 44 percent compared with March 2019. The figures were 4,842 and 3,923 for Ferbruary and January, respectively.

Meanwhile, the Ministry of Industry and Trade (MOIT) reported that the domestic automobile output in the first four months of the year decreased by 24 percent compared with the same period last year to 61,400 products.

The slow car sales were attributed to the low demand in Covid-19. Meanwhile, some manufacturers, including Toyota, Ford, Honda, VinFast and Hyundai Thanh Cong had to suspend their operation in March.

Manufacturers have to run sale promotion programs to stimulate demand, offering unprecedented price discounts. Toyota Innova, Toyota Fortuner, Honda CR-V and Mazda CX-8 are sold at the price discounts of VND40-200 million.

Pham Van Dung, CEO of Ford Vietnam, said the sales in April were ‘nearly frozen’ and the situation would continue in the months to come, though the social distancing policy has eased. People will prioritize to spend money on essential goods rather than cars.

Linh Ha 

With tax and fee decreases, automobiles will be cheaper than ever

With tax and fee decreases, automobiles will be cheaper than ever

If the government agrees to slash taxes and fees for domestically assembled cars, this will be a ‘doping dose’ for domestic automobile manufacturers and consumers.

VN automobile sales fall to 5-year low

VN automobile sales fall to 5-year low

Car sales have dropped to a 5-year low and may continue to slide if the pandemic persists.

 
 

Other News

.
IPs set up, but Vietnam still needs to do more to attract investors
IPs set up, but Vietnam still needs to do more to attract investors
BUSINESSicon  03/06/2021 

There were positive developments of industrial parks in Vietnam in the first five months of the year, but experts still say the country should do more to attract big investors.

CPI growth in Jan-May lowest in five years
CPI growth in Jan-May lowest in five years
BUSINESSicon  03/06/2021 

The country’s consumer price index (CPI) in the first five months of the year grew 1.29% year-on-year, the lowest for the period since 2016, according to the General Statistics Office.

Ministry of Finance proposes keeping fee reductions until end of 2021
Ministry of Finance proposes keeping fee reductions until end of 2021
BUSINESSicon  03/06/2021 

The Ministry of Finance has proposed extending the reduction periods of several fees beyond the current expiration date of June 30.

Nearly 60,000 businesses withdraw from market
Nearly 60,000 businesses withdraw from market
BUSINESSicon  03/06/2021 

The number of newly established enterprises is still increasing, but the rate of businesses withdrawing from the market has also risen.

LG pulls out of smartphone production in Vietnam from today
LG pulls out of smartphone production in Vietnam from today
BUSINESSicon  02/06/2021 

Today, June 1, is the last day that South Korean conglomerate LG produces smartphones in Vietnam before it focuses on making home appliances only.

VIETNAM BUSINESS NEWS JUNE 3
VIETNAM BUSINESS NEWS JUNE 3
BUSINESSicon  03/06/2021 

 Stock market hits historic peaks

Investment into local start-ups expected to rise this year
Investment into local start-ups expected to rise this year
BUSINESSicon  01/06/2021 

The investment capital into Vietnamese start-ups this year would see a breakthrough despite a year-on-year decrease of 48 per cent in 2020 to reach US$451 million.

Businesses seek sources to buy vaccines for their workers
Businesses seek sources to buy vaccines for their workers
FEATUREicon  02/06/2021 

The electronics, textile and garment, footwear, wooden furniture and dairy sectors have proposed that the Government allow them to seek vaccine sources and pay for vaccinations at their enterprises so they can maintain production.

Vaccines yet to come, but biotech share prices escalate
Vaccines yet to come, but biotech share prices escalate
BUSINESSicon  02/06/2021 

Biotech shares, especially the shares of vaccine producers, are being sought by investors.

Selling farm produce online: e-commerce sites compete to attract farmers
Selling farm produce online: e-commerce sites compete to attract farmers
BUSINESSicon  02/06/2021 

For years, farmers had to rely on the wholesale distribution method and could not sell products directly to consumers. But that has changed in recent years.

Money flows strongly into Vietnam’s stock market
Money flows strongly into Vietnam’s stock market
BUSINESSicon  02/06/2021 

The flow of money from several hundred thousand newly-opened accounts into the stock market has expanded the pockets of Vietnamese billionaires by hundreds of millions of US dollars in a short time.

Difficulties facing the country eased by corporate social responsibility activities
Difficulties facing the country eased by corporate social responsibility activities
FEATUREicon  03/06/2021 

After the Covid-19 vaccine fund was established, Vietnamese businesses contributed hundreds of billions of Vietnamese dong. Many companies said they are willing to vaccinate their employees and customers with their own sources.

New master plan for seaports needed to further boost economic development
New master plan for seaports needed to further boost economic development
BUSINESSicon  01/06/2021 

A new master plan for seaports is needed to further boost the country’s socio-economic development in the rapid international integration process, experts have said.

Realty tax needs revamp to ensure fairness
Realty tax needs revamp to ensure fairness
BUSINESSicon  31/05/2021 

Realty tax not only creates sources of collection for the State budget but also is a policy able to spur growth and reduce bribery related to land. Vietnam does have realty tax.

Many companies manufacture components for Samsung, Foxconn resume operations
Many companies manufacture components for Samsung, Foxconn resume operations
BUSINESSicon  01/06/2021 

The Management Board of Industrial Parks of Bac Giang Province has allowed nine enterprises in Van Trung, Dinh Tram and Quang Chau industrial parks in Viet Yen district, Vietnam’s largest epidemic hotspot, to resume operations.

VIETNAM BUSINESS NEWS JUNE 1
VIETNAM BUSINESS NEWS JUNE 1
BUSINESSicon  01/06/2021 

Shares gain on buoyant banking stocks

Market will continue to breach new highs, but investors should be more cautious: experts
Market will continue to breach new highs, but investors should be more cautious: experts
BUSINESSicon  31/05/2021 

The market witnessed strong buying interest last week and analysts from many securities firms expect indices to continue to hit new highs, but have warned investors to be cautious.

E-commerce changing domestic retail property market
E-commerce changing domestic retail property market
BUSINESSicon  31/05/2021 

The shift toward e-commerce due to the COVID-19 pandemic has brought challenges to Vietnam’s retail property market, according to Savills Vietnam.

Customs sector helps exporters utilise benefits of FTAs
Customs sector helps exporters utilise benefits of FTAs
BUSINESSicon  30/05/2021 

The customs sector will continue to introduce measures to help Vietnamese enterprises fully tap the benefits brought about by FTAs Vietnam has signed with foreign partners, an official from the General Department of Vietnam Customs has said.

CPI inches up 0.16 percent in May
CPI inches up 0.16 percent in May
BUSINESSicon  30/05/2021 

Vietnam’s consumer price index (CPI) in May was up 0.16 percent agaisnt April and 2.9 percent from last year, reported the General Statistics Office (GSO) on May 29.

 
 
 
Leave your comment on an article

OR QUICK LOGIN