Car market in auto cruise mode

Local auto market competition is hitting the fast lane.

A range of new models are being rolled out such as the Hatchback Mazda making a comeback in the Vietnamese market early this year after it was imported into the country by VinaMazda, which acts as an authorised Vietnamese sales agent for Japan-based Mazda Motor Corporation.

Mazda 2, Mazda 3, Mazda 3, CX9 and pick-up BT 50 were distributed by VinaMazda’s three dealers in Vietnam’s three major regions.

VinaMazda is reportedly busy establishing workshops in Chu Lai Open Economic Zone in central Quang Nam province to be able to embark on assembling some Mazda brands with proposed rollouts within a next few months.

Mazda vehicles used to be assembled and sold in the Vietnamese market together with BMW and Kia brands by the Hoa Binh Automobile Joint Venture (VMC).

However, the assembly of Mazda vehicles in Vietnam ended in 2005 due to poor sales figures.

Mazda hatchbacks, however, continued to be imported into Vietnam.

Besides Mazda, the local auto market will soon witness the rollout of vehicles under General Motors (GM) brand to supersede GM Daewoo Vidamco brand.

In South Korea, Daewoo vehicles no long existed after the parent company GM Daewoo Auto & Technology Co. became GM Korea Co. from the first quarter of 2011.

In Vietnam, the Vidamco joint venture was founded in 1993 and turned into a 100 foreign-owned firm in April 2000.

It later renamed to GM Daewoo Vidamco which just stood behind Japan-backed Toyota in terms of passenger car sales in many years in the Vietnamese market and reaped great success with the mini-car Matiz.

South Korea’s Kia Motor Group is joining hands with local Truong Hai Auto Joint Stock Company to work on the import and assembly of some Kia vehicle brands such as Morning, Caren and Sorento.

Recently, Kia resumed negotiations with Chu Lai Zone Authority on opening an auto manufacturing plant in the zone with an annual capacity of 100,000 vehicles serving domestic market and export demands. The vehicle price will be around $8,000 per unit which was alleged to suit the budget of Vietnamese and some regional country consumers.  -VIR

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