Auto market gets into gear

The local auto market is ready to roll this year with a number of new brand models being launched.

Honda Vietnam (HVN) is revved up after unveiling a new sedan model, the Honda Accord 2011, imported in a completely built unit (CBU) form, which is expected to diversify the market for local consumers, alongside existing models such as Toyota Camry (assembled in Vietnam) or the CBU-imported Hyundai Sonata and Nissan Teana.

The new 3.5L engine Honda sedans are being sold for VND1.66 billion ($83,000), around VND200 million ($10,000) more than 3.5Q Camry vehicles.

Toyota Vietnam (TMV) will soon enter the market with a new version of the multi-purpose vehicle Toyota Innova. TMV sold out around 7,300 Innova vehicles in 2010.

Ford Vietnam, the US-backed auto firm, is also expected to launch its Fiesta model in the second quarter of this year, a move which will boost the Ford brand’s appeal on the Vietnamese market.

The Fiesta would have to compete with the Toyota Yaris to seize the market share after this Japan-backed auto firm unveiled plans to sell this model in Vietnam in 2011 (formerly the model was imported and sold by commercial firms but not by Toyota Vietnam). The Toyota model’s launch may coincide with the launch of Ford Vietnam’s Fiesta model.

According to industry experts, the market for locally assembled vehicles will be volatile in 2011 in light of financial management changes. The duty imposed on imported vehicles from the Association of South East Asian Nations (ASEAN) member countries was eased to 70 per cent from the previous level of 83 per cent while the Vietnam dong-US dollar rate is still high and registration fees are slated to rise from 12 to 20 per cent.

Sales by Vietnam Automobile Manufacturers’ Association (VAMA) members were down six per cent in 2010 against 2009 with commercial vehicles losing four per cent, sedans and hatchbacks three per cent and multi-purpose vehicles 13 per cent. However, sales in December topped 2010 with 12,485 units being sold in this month alone. – VIR

Tags: Vietnam automotive, Vietnam automotive industry, Vietnam autos market