The first Nissan Sunny is produced by TCIE Viet Nam Company in the Hoa Khanh industrial zone in Da Nang's Lien Chieu District. The company, part of Malaysia's Tan Chong Motor Group, has been the the first and only Nissan Sunny assembly unit in central Viet Nam.

DA NANG (Biz Hub) — TCIE Viet Nam Co, Ltd has sold 665 Nissan Sunny cars in the domestic market till June this year, earning revenue of US$14.5 million.

The company, part of Malaysia's Tan Chong Motor Group, started operations in its factory in the Hoa Khanh industrial zone in Da Nang's Lien Chieu District last year. It is the first and only Nissan Sunny assembly unit in central Viet Nam.

"It's still a modest sale for our company in the first half of this year since our first roll-out Nissan Sunny last year. We hope to increase sales of the sedan segment in the Viet Nam market," Chairman Loh Chun Ying told Biz Hub on July 16.

Loh said the supportive automobile industry in Viet Nam and the central region has not yet developed enough to provide spare parts and accessories to automobile manufacturers.

A workers welds frame of a car at TCIE Viet Nam Company's factory in the Hoa Khanh industrial zone in Da Nang's Lien Chieu District.

"Some domestic producers of automobile spare parts and accessories in Viet Nam could provide help to localise parts for car makers, but prices have to be competitive enough against those imported," he explained.

He said the automobile market in Viet Nam still faces hurdles in its attempts to accelerate growth due to car prices which are higher than those in countries like Thailand, Malaysia or Indonesia.

"Cars in Viet Nam still cost more than those available in other ASEAN countries. Meanwhile, consumers still have to pay different taxes for driving cars here," he said.

A final stage of production of Nissan Sunny is tested at Da Nang-based automobile plant. — VNS Photos

"Also, Vietnamese buyers have yet to approach banks for car loans. Paying through bank instalments would give more options to car users, but they are hesitant because of the poor infrastructure and parking in some cities and provinces," he said.

"So the motorcycle is still king of the road in the cities," he added.

The TCIE Viet Nam's US$40-million automobile plant with an annual capacity of 6,500 vehicles has received support from the local administration in setting up the plant quickly in competition with big brands like Toyota and Honda in Viet Nam.

The plant only assembles Nissan's popular Sunny model – XV Automatic Transmission and XL Manual Transmission model – with 2,000 units rolling out in the first year. — VNS