The sales of pickups decreased in 2018

A report from the Vietnam Automobile Manufacturers’ Association (VAMA) showed that the sales of pickups fell from the third position in 2017 to fourth in 2018, and its position is still under threat this year.

Ford Ranger, called the ‘pickup King’, saw the sharpest decline. About 13,500 pickups were sold in 2017, while the figure tumbled to 6,700, or 50 percent, in 2018.

The sales of other pickup models are also on the decrease. Mitsubishi could only sell 1,700 Tritons, or 200 products less than 2017. Colorado of Chevrolet was the only model which had satisfactory sales with 3,470 products, an increase of 670.

VAMA attributes the pickup sales decrease to the strong rise of other types of vehicles.

Other SUV product lines saw a large expansion of pickups. Manufacturers launched a series of SUV models with better design and smaller size, suitable to travel within cities and long journeys.

Statistics show that SUVs & small-size models saw sales increase sharply last year. According to VAMA, 87,400 sedans were sold, up by 22,000 products. As for Crossover, the sales were over 11,000 products, up by 3,300. The figures were 18,000 products for MPV, and 12,000 for hatchbacks, increasing by 4,000 and 1,800, respectively.

Nguyen Quang Bac, head of the sales division of an automobile company, said that pickups’ advantage is in that they are multipurpose, but designs show problems. 

“Many people buy pickups because the cargo compartment is large and they can enjoy long journeys. However, the large size of pickups makes it difficult to travel within the city,” Bac said.

Urban transport conditions in Vietnam, especially in large cities, are a “nightmare” for pickups. People now want compact and convenient vehicles.

“People need pickups for travel only several times a year, while they have to go to office every day. Pickups only fit merchants, businesspeople and construction companies,” he commented. 

Tran Thanh Minh, the owner of a car showroom on Nguyen Van Cu street in Hanoi, agreed with Bac, saying that pickups could be a trend for several years, but Vietnam’s transport is not a paradise for the product line. 

New tax policies may also cause car dealers to change their distribution strategies.

The ownership registration tax on pickups will increase from 2 percent to 6 percent in 62 cities/provinces, and 7.25 percent in Hanoi. A Ford Ranger valued at VND900 million, for example, will have registration tax of VND54 million in localities except in Hanoi.

US$1=VND23,000

RELATED NEWS

Finance ministry calls for higher fees on pickup trucks and vans

Govt wants taxes on pick-up trucks hiked to match cars

Ha Dung