Luxury vehicals on the move

While the number cars and motorbikes imported in April is expected to decrease, the import turnover is believed to increase, which shows that Vietnamese people now use more valuable vehicles, a new consumption tendency.

According to the General Statistics Office (GSO), the actual import turnover of cars imported in March under the form of complete built unit (CBU) was higher than the forecast figure by 1000 cars. In fact, 4000 cars were imported in March, worth $62 million, an increase of 1000 cars valued at $17 million.

GSO does not think that April will see the increases again. It has estimated that that only 3000 cars will be imported in April, a decrease of 1000 cars from the previous month

Despite witnessing the considerable decrease in terms of quantity in comparison with March, the import turnover of cars in April may increase slightly from $62 million to $65 million.

The figures have led to the belief that Vietnamese people will purchase more and more valuable vehicles in the time to come. Insisting that they will not favour smaller and cheaper cars any longer.

From late April, the import tariff on some kinds of cars with nine seats with the cylinder capacity of 2.9L and higher, and some kinds of 4WD vehicles will decrease by 3-6 percent. These are mostly big size and valuable vehicles. The tax reduction, thus leading to lower sale prices, is believed to help increase sales.

Meanwhile, the motorbike imports in April are estimated to decrease by 14 percent, and the import turnover will be the same.

GSO has estimated that some 6000 motorbike will be imported in April, a decrease of 1000 motorbikes from March 2010. Meanwhile, the import turnover would remain the same at seven million dollars.

Excluding January because sales significantly increased during the pre-Tet month, the number of motorbikes imported in the last five months just hovered around 6000-7000 motorbikes a month.

The figures, according to analysts, show that the Vietnam motorbike market has become saturated.

According to the Vietnam Registration Administration, by the end of the year, Vietnam would have 24 million motorbikes, that’s one motorbike for every three people.

Though the demand for motorbikes has not increased, the demand for larger luxury models keeps rising.

According to GSO, by the end of April 2010, the total number of import motorbikes will reach 30,000, while the import turnover will reach $35 million. This represents the decrease of 29 percent in quantity and 39 percent in value in comparison with the same period of 2009.

Thoi bao Kinh te Vietnam

Tags: Vietnam Auto market, Vietnam automotive, Vietnam automotive industry