Vietnam's auto sales down 6 percent in 2018's first half

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Vietnam's total automobile sales in the first half of this year were 125,659 units, a year-on-year decline of 6 percent, the Vietnam Automobile Manufacturers Association said on July 11. In June alone, 21,913 automobiles were sold in the Vietnamese market, down 5 percent against May, but up 10 percent against June 2017.

Specifically, sales of passenger cars dropped 1 percent against May to 15,185, those of commercial vehicles such as trucks and buses decreased 8 percent to 6,281, and those of special-purpose vehicles fell 42 percent to 447.

Vietnam's auto sales down 6 percent in 2018's first half.

In the first six months of this year, Vietnam imported completely-built automobiles and components for assembly totaling over 1.7 billion U.S. dollars, falling 34.9 percent on-year. Specifically, the country imported nearly 11,300 completely-built automobiles worth 309 million U.S. dollars, posting respective decreases of 77.9 percent and 70.2 percent, according to its Ministry of Industry and Trade.

The total sales of VAMA member brands fell sharply. The Lexus brand (Toyota) fell 83 percent. It was followed by Ford, down 33 percent, Nissan down 26 percent, Toyota and Mercedes-Benz all down 13 percent and Chevrolet brand (GM Vietnam) down 9 percent, according to VNS's report.

Insiders said that the January-June sales were affected by the Government’s Decree 116/2017/NĐ-CP, known as Decree 116, which stipulates the conditions for production, assembly, import and business of automobile warranty and maintenance services and came into effect early this year.

Vietnam's auto sales down 6 percent in 2018's first half.

In 2017, the two big Vietnamese automakers, Toyota with the Fortuner model and Ford with Ranger model, always reached high sales volume and consistently ranked among the bestselling car brands on the market every month. The demand for those models is still high, but there are no vehicles for sale due to the provisions of the decree 116.

The market in the first six months showed that Honda Vietnam imported four models (including the CR-V, Civic, Jazz and Accord) and then GM Vietnam imported two models Chevrolet Trailblazer and Colorado for distribution in the country.

Toyota Vietnam recently announced the sale prices of three imported units including Fortuner, Hilux and Hiace, but these models will be officially rolled out to the market in August because of the lengthy time required to complete relevant procedures.

This year, total vehicle sales will increase to over 284,400 units, global research company BMI Research forecast, explaining that passenger car demand would be driven by reduction in tax rates on vehicles with engine sizes of 2.0 liters or less, and elimination of tariffs on completely-built units from ASEAN member countries in January.