Tag: car

According to the latest draft strategy submitted by the Ministry of Industry and Trade, out of the 1 million cars to be sold in Vietnam in 2030, around 350,000 units will be electric, hybrid, and solar-powered vehicles.

Centers in Hanoi and HCMC meeting just 40-50% of demand.

Figures from the General Department of Vietnam Customs show that 18,303 completely-built-up (CBU) motor cars of all kinds were imported in September, with total turnover standing at $367.45 million, a 0.1 per cent increase in number but fall of 4.7 per cent in turnover compared to August. In the first nine months of the year, 114,496 CBU motor cars were imported, with turnover totaling more than $2.6 billion, up 0.2 per cent in number and 3 per cent in turnover year-on-year.

Three new car models were introduced by manufacturers in the space of just one week recently - the Kia Sportage, Mitsubishi Xpander 2022, and Honda HR-V 2022. New models are coming quickly, to compete with “heavyweights” already on the market.

Figures from the General Statistics Office show that more than 63,500 new motor cars were sold in May. Imported cars totaled 19,000 units, up 22.3 per cent in volume and 33.2 per cent in value over the same period last year. Domestically-produced and assembled cars were estimated at 44,500 units, up 13.2 per cent against April and 17.6 per cent year-on-year.

Vietnam’s motor car market has become more active after a long period of doom and gloom, while the price of many models has increased due to supply shortages. According to the Vietnam Automobile Manufacturers Association (VAMA), despite a decline of more than 30 per cent compared to December, purchases in January rose 16 per cent year-on-year. Notably, January has recorded the highest sales for the past three years.

Top 5 unchanged from 2020, but in different order.

Indonesia has recently become a major supplier of motor vehicles to Vietnam. Imports from the country in September rose 66.4 per cent compared to August, according to the General Department of Vietnam Customs.

September sales increase significantly against August but down 50 per cent against September 2020.

Vietnam’s automobile market welcomed many new models in different segments in September, with prices ranging from VND600 million ($26,415) to VND5 billion ($220,160). Some models feature artificial intelligence and are assembled in Vietnam.

The fourth outbreak of Covid-19 dragged down sales in Vietnam’s auto market to a six-year low in August.

Covid-19 continues to cast a shadow over Vietnam’s motor vehicle market, forcing automakers to extend discount and promotional programs to boost consumption. It is forecast that the woes will continue for the market until the end of the year and that prices will remain low.

Demand for motor cars in Vietnam fell 32 per cent in July compared to June. This is the fourth consecutive month sales have declined, in both imported and locally-assembled vehicles. It is forecast that demand may fall even further in the time to come.

A proposal has been made to extend the tax incentive program for domestically-manufactured and assembled cars beyond 2022. The program will continue to maintain a 0 per cent tax rate on imported auto components, and at the same time amend and supplement a number of regulations relating to emissions, localization ratios, preferential consideration periods, and output.

As of the end of 2020, Vietnam had more than 40 enterprises engaged in the production and assembly of motor vehicles, some of which have actively participated in global automobile production chains. The country’s total assembly capacity is 755,000 vehicles a year, of which the foreign-invested sector accounts for 35 per cent and local enterprises 65 per cent.

The top 5 most popular automobile brands in Vietnam in the first half of 2021 are Hyundai, Toyota, Kia, VinFast, and Mitsubishi, which have all posted increased sales. This is a positive result amid the difficulties the industry has had to face.

A report from the research team at the United Nations Development Program (UNDP) in Vietnam pointed out that Covid-19 has not directly impacted the country’s car industry but instead presented it with more opportunities. They suggest that Vietnam quickly issue suitable policies so that its car industry can focus on a transfer to electric cars in the time to come. Electric cars are the future of Vietnam’s car industry, the report noted, and will mark the country’s position in the global market.

Vietnam’s auto imports have been substantially influenced by the ASEAN Trade in Goods Agreement (ATIGA). Since import taxes on completely built-up (CBU) vehicles were cut to zero from January 1, 2018 under the agreement, vehicles from Southeast Asia have continuously grown in terms of market share. In the first half of this year, Vietnam imported 79,353 CBU vehicles worth $1.73 billion. Those originating from Southeast Asian countries (mainly Thailand and Indonesia) dominated in terms of volume, accounting for 80 per cent.

Completely-built-unit (CBU) motor cars imported into Vietnam in the first half of this year doubled the figure posted in the same period last year, according to the General Department of Vietnam Customs. The country imported 81,107 CBUs in the period, with turnover reaching more than $1.838 billion, up 100.5 per cent in volume and 100.3 per cent in value compared to the first half of 2020.