Vietnam Business Channel

VAMA says Vietnam’s automobile market is on the fast track to recovery

The VinFast factory in Hai Phong / Photo courtesy of VinFast.

According to a new report from the Vietnam Automobile Manufacturers’ Association (VAMA), member companies sold 24,002 automobiles in June, an increase of 26% compared to May, but down 13% year-on-year.

The breakdown of automobiles that were sold included 17,585 passenger cars, 6,109 commercial automobiles and 309 special use cars.

VAMA said that June’s increase in automobile units sold is a signs that Vietnam’s economy and the automobile industry are recovering from the global Covid-19 pandemic.

In the first six months of 2020, VAMA member companies sold a total of 107,183 automobiles of all classifications, down 31% from the same period in 2019. Sales of passengers cars were down 32% in this period, commercial car sales were down 25% and special use automobiles were down 40%.

Automobile analysts said that VAMA’s numbers do not reflect 100% of Vietnam’s automobile industry since sales of brands that are not members of VAMA are not included in VAMS’s figures.

Non-VAMA brands include Audi, Jaguar Land Rover, Mercedes-Benz, Subaru, Volkswagen, Volvo and TC Motor. TC Motors said that is sold 5,613 units in June, and local brand, VinFast reported that it sold 2,170 units during June.

The automobile industry is expected to continue to recover throughout the summer and with a government reduction of the regulation tax for domestically assembled automobiles of 50%, and a variety of marketing campaigns being implemented by various brands, the industry is hoping that by September it will match numbers from the same month in 2019.

 

 

 

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