Auto sales mark new record in 2009

Automobile sales, including domestic-manufactured and imported autos, last year set a new record of nearly 200,000 units on the domestic market despite the global economic slump, giving a strong boost to automakers in Vietnam.

The 16 members of the Vietnam Automobile Manufacturers Association (VAMA) sold 119,460 units last year, 7% more than in 2008. In December alone, these automakers sold 16,065 vehicles, up 59% year-on-year, to become the best sales month of the year, VAMA figures show.

Last year, the passenger car segment increased by 47%, the MPV/SUV segment 3%, but commercial vehicle sales dropped by 7%, according to VAMA.

Mercedes-Benz Vietnam sold nearly 3,400 units last year, a staggering 60% year-on-year increase and the highest growth rate among the members of VAMA. GM Daewoo sold 14,200 units, up 29%.

Ford Vietnam reported its best-ever sales performance last year with sales increasing by 28% versus a year earlier to 8,286 units. The record year was supported by strong sales across Ford’s product lineup.

Toyota Vietnam continued as the market leader last year with 30,110 units sold, up by 23%, while Truong Hai sold more than 21,600 units, up 22%.

The market has undergone big changes since the luxury tax law came into effect and the car ownership registration fee was slashed by half in HCMC and Hanoi in late April. Automakers attributed the improvement in car consumption to these proactive measures by the Government.

However, some carmakers registered decreases in sales. Honda Vietnam sold 4,215 units, down 29%, Hino’s sales totaled nearly 2,200 units, down 18%, and Isuzu nearly 3,000 units, down 11%.

Regarding the import auto segment, the country imported 76,300 completely built-up units (CBU) in 2009 worth US$1.17 billion, the highest-ever auto import value in history, according to the General Statistics Office.

The number of imported cars has been increasing steadily over the last few years. In 2007, only 28,000 cars were imported at US$500 million, but the figure rose to 50,400 cars worth US$1 billion in 2008 and then to 76,300 cars in 2009.

Car imports have increased most sharply since August. November witnessed the highest volume of cars imported in 2009, with importers spending US$159 million on 11,500 CBU cars.

The imports fell sharply in December, simply because importers anticipate lower purchasing power for next year when tax incentives are removed. Only 7,000 cars were imported at a value of US$98 million.

Imports have reflected the real situation of Vietnam’s car market and the impact of the tax policies. The imports sold on a massive scale in October and November, when people rushed to purchase cars before the tax incentives ended.

Automakers and auto importers have announced new prices for their cars since the VAT on automobiles was doubled from 5% to 10% on January 1.

The auto industry this year will face extra difficulties as vehicle registration fees will be adjusted up to 10%-12% from the previous 5%-6%.

Tags: Vietnam auto sales, Vietnam automotive industry