VietNamNet Bridge - The massive import of cheap cars did not occur in 2018 as predicted, but sales in 2018 were still satisfactory, especially domestically sold cars.


{keywords}

A VinFast's model



According to the Vietnam Automobile Manufacturers Association (VAMA), its member companies sold 288,683 cars in 2018, an increase of 5.8 percent over 2017. 

Hyundai Thanh Cong, which is not a VAMA member, sold 63,526 cars, an increase of 103 percent.

Automobile assemblers had a successful year in 2018. Hyundai Thanh Cong doubled its sales. VAMA members assembled 215,704 cars, up by 10.6 percent compared with 2017.

Among the 10 best selling models, Toyota Vios had the most impressive sales, with 27,188 cars sold, followed by Hyundai Grand i10 with 22,068 cars sold.

The massive import of cheap cars did not occur in 2018 as predicted, but sales in 2018 were still satisfactory, especially domestically sold cars.

Due to the modest imports, nine out of 10 bestsellers were assembled in Vietnam.

Bios, Grand i10 and Innova were among the bestsellers. Accent was fifth in the list of best sellers. 

The upgraded version of Accent was launched in Vietnam last April, with 12,537 cars sold, exceeding Honda City, its direct rival in B-size sedan segment. Other domestically assembled such as Hyundai Kona and Mitsubishi Outlander also sold well.

Unlike domestically assembled cars, imports had a bad year. Decree 116 with barriers on VTA certificate led to a 6.2 percent drop in car imports to 72,979.

Vietnamese consumers thought if importers could satisfy the strict requirements stipulated in Decree 116, they would be able to buy cars at reasonable prices. But this did not happen in 2018. Predictions about import car prices change regularly.

Decree 116, released on October 17, 2017, stipulates the conditions for production, assembly, import and business of automobile warranty and maintenance services.

Of the 10 bestsellers in 2018, Honda CR-V was the only import, while Toyota Fortuner and Ford Ranger, familiar names, were not on the list of bestsellers.

More imports arrived in the last months of 2018, when importers could satisfy Vietnam’s requirements on procedures. In December, 14,000 products were imported, raising the total imports to 81,000. 

Regarding market share, the three top positions still belonged to familiar names – Truong Hai, Toyota and Hyundai Thanh Cong. 

Truong Hai, with Kia, Thaco Bus, Thaco Truck, Mazda, Peugeot and BMW brands, holds 27.3 percent of market share. Toyota is second with 18.7 percent, and Hyundai Thanh Cong 18 percent. 

Big changes in the car market are expected in 2019, when more cars from VinFast, a Vietnamese brand, will hit the market.


RELATED NEWS

Car price war to break out from January 1, 2018

The highlights of the automobile market in 2018


Mai Thanh