The number of cars sold in Vietnam in December 2020 surged by 31.6% month-on-month and 45% year-on-year to 47,865 units, according to data released monthly by the Vietnam Automobile Manufacturers' Association (VAMA).
Big sales promotion in the final month of the year and customers rushing to buy cars before the government's policy of reducing 50% of the registration fee for domestically-produced cars expired by the year-end were seen as key factor that led to a high number of cars sold in December.
|Number of car sales in 2020. Source: VAMA.|
The volume included 36,856 passenger cars, up 28% inter-monthly; 10,673 commercial cars, up 50%; and 336 special-purpose vehicles, down 30%.
As many as 29,382 locally assembled cars were sold in December, up 25% against the previous month, and the figure for imported cars rose by 44% to 18,483 units.
However, car sales in Vietnam in 2020 dropped 8% year-on-year to 296,634 units across all segments. Meanwhile, the sales of domestically assembled cars reached 187,688 units during the period, down 1% compared to the same period of last year, while imported completely-built-units (CBUs) totaled 108,485 units (-17%).
Such decline in the number of car sales was significantly lower than VAMA’s forecast of 15% decrease in the sale number for the year.
Truong Hai Auto Corporation (Thaco) led the market in 2020 with 100,727 units sold, up 10% year-on-year and accounting for 35.5% of the total sales, followed by TC Motor with 81,368 and Toyota with 70,692.
| Sales of imported cars down 17% year-on-year in 2020. Source: VAMA. |
Experts said while the local economy in 2020 was ravaged by the Covid-19 pandemic, the fact that the country has effectively contained the pandemic and government’s supporting policies for the automobile sector, including a 50% reduction in registration fee for domestic car, have been the key factors keeping the sector to a strong finish by the year-end.
Such policy would help customers save up from VND15million-300 million (US$650-13,000), depending on the car model and up to 10-12% of the car prices in different provinces/cities with the cut in registration fee, not to mention imported cars were forced to lower their prices to stay competitive.
Head of the Policy Department under Vietnam Automobile Manufacturers Association (VAMA) Nguyen Trung Hieu said the year of 2021 is set to be another difficult one for Vietnam’s car market, especially when the Covid-19 pandemic continues to remain complicated globally and businesses tighten their spending.
Sharing Mr. Hieu’s view, Director of auto dealership Thien Phuc An company Nguyen Tuan said in case the market continues to stay quiet, car dealers may have to provide their own sales promotion programs for customers to keep up revenue.
Car manufacturer Vinfast, owned by conglomerate Vingroup, has recently announced its policy of supporting the registration fees for customers buying their two models of Lux A2.0 and Lux SA2.0 from now until February 28, 2021.
Meanwhile, Mitsubishi Vietnam is also offering a 50% reduction of registration fee for those who want to buy Outlander 2.0 CVT Premium, Outlander 2.0 CVT, or Xpander, with the corresponding saving amount of VND28-48 million (US$1,200 – 2,100).