According to the Vietnam Automobile Manufacturers Association (VAMA), the sales of passenger cars, commercial vehicles, and special vehicles in January 2021 increased by more than 60%, 11%, and 31% compared to the same period last year, respectively.
To be specific, the number of automobiles sold in January 2021 reached nearly 20,400 units, with a year-over-year increase of more than 7,600 units. More than 5,700 units of commercial vehicles were sold, increased by more than 3,000 units over the same period last year. And the number of specialized vehicles sold reached more than 293 units, rose by more than 70 units year over year.
In terms of the origin, the number of domestically assembled and imported automobiles increased by more than 56% and 88% over the same period last year, respectively.
Compared to the same period last year, the sales in most car manufacturers increased. To be specific, Kia Truong Hai was ranked the highest with an increase in the sale of 18.5%, followed by Toyota with an increase of 18%. The rest was Honda (up 12.5%), Mazda Truong Hai (up 10%), Ford Vietnam (up 6.6%), and finally Hyundai with the highest actual sales of 6,000 units, up 2% over the same period last year.
Although the sales of automobiles in January 2021 increased year over year but recorded a sharp drop of 45% compared to the preceding month, December 2020. In particular, commercial vehicles and specialized vehicles decreased by more than 46% and 13%. Regarding the origin, the number of domestically assembled automobiles fell by more than 51% and imported cars decreased by more than 35%.
However, this is a normal scenario. The car sales in the first month of a year always decrease considerably compared to the last month of the preceding year. That is because, in the last months of a year, car manufacturers often offer incentives, discounts, and great promotions to stimulate demand for cars. On the contrary, at the beginning of the year, manufacturers and agents often cut down on incentives to prepare for the sales race in mid-year months.
However, automobile sales in February 2021 are likely to decline significantly due to the impact of the new COVID-19 pandemic wave and the Lunar New Year. "The automobile market still needs a sale push because only sales can maintain production. It is difficult to count on the policy of reducing registration fees this year. Manufacturers need to restructure trade channels, reduce prices, and win over competitors. This is a long-term plan to ensure sustainable growth", said Mr. Hoang Van Tuoi, owner of a private car dealership on Pham Hung Street, Nam Tu Liem District, Ha Noi.
The income per capita in Vietnam is on the rise, expected to have an 8 - 10% growth/year over the next ten years. Compared to other countries in the region, Vietnam's current average income is very close to the explosion of car demand.
According to the SSI Research report, automobiles will soon go from luxury goods with only 34 cars/1,000 people in 2020 (source: Vietnam Registry) to become popular consumer goods with high car ownership rates as in other countries in the region.
Secondly, according to SSI Research, the rapid increase in domestic automobile production is gradually meeting consumer demand and will help lower car prices. Manufacturers can offer attractive discount policies to boost market demand and catch up with new supply.
Thirdly, there will be a gradual reduction of taxes and fees on automobiles. After Decree 57/2020/ND-CP and the free trade agreements like EVFTA, ATIGA come into effect, many taxes and fees have been cut down and car prices have been reduced accordingly.
Compiled by VietnamCredit