August 15, 2018 11:50

Advertisement Contact us RSS Vietnamese

Automobile market reducing 10%, ending the dramatic year

15:15 | 16/01/2018

VCN- According to the latest report of Vietnam Automobile Manufacturers Association (VAMA), total buying power of automobiles in the 2017 market was 272,750 units, reducing by 10% compared to 2016.

automobile market reducing 10 ending the dramatic year Actively mobilizing resources to set up centralized automobile zones
automobile market reducing 10 ending the dramatic year September: Vietnam's automobile market achieved growth of 24%
automobile market reducing 10 ending the dramatic year
Despite efforts by automakers, the auto buying power in 2017 decreased by 10%. Photo Nguyen Ha

In which, the volume of passenger cars reached 154,209 units, down 15%; Commercial cars reached 104,672 units, down 2%; and special-purpose vehicles reached 13,869 units, down 12%.

The results are beyond expectations as well as predictions of the automakers despite the economic growth in 2017 being high and firms making great efforts to launch new products in the market, especially as promotion and discount programs were applied consecutively.

It can be said that Vietnam's automobile market has never witnessed such strong price reductions, even many firms had to cut profits to compensate for price. As a result, in 2017, the retail price of passenger cars in the Vietnam’s market fell to the level close to the regional level.

However, the buying power in market was not as high as expected. In the first three months of the year, buying power was still quite high. But in the second quarter of the year it reduced significantly. The total sales of automobile in market for April 2017 only reached 21,942 units, a decrease of 18% compared to the previous month, and 15% compared to the same period in 2016. This reduction was sustained in the following month.

automobile market reducing 10 ending the dramatic year
The sales reduced due to people’s psychology of waiting for an auto price cut

Due to people’s psychology of waiting for an auto price cut with the import tax rate of 0% in the region in 2018. On the other hand, the consecutive discount programs offered by firms made customers wait for the lowest prices.

In 2018, few firms are confident to make an assessment of the auto market as it is a time when a series of new policies on business, production and import is applied such as: import duty in the region reduces to 0%; Decree 116 on the condition of automobile production and business takes effect; policy on reducing tax for imported auto parts to assist domestic production is implemented and Special Consumption Tax policy will also be amended.

automobile market reducing 10 ending the dramatic year Imported automobiles suddenly increase significantly again

VCN – In recent days, the volume of imported cars has increased sharply after months of decline, ...

Besides, the automobile market has changed significantly, when THACO became the leading company in automobile industry with 8 major car brands and large investment plans. Thanh Cong Hyundai has transformed from the largest automobile importer into a domestic production and assembly company; and VinGroup – a real estate group, has officially invested in the field of automobile production with quite a number of grand plans.

However, some experts assessed that the sales in auto market will increase by at least over 10%.

By Nguyen Ha/Ngoc Loan