Domestic car market maintains sale growth in April

Tuesday, May 17, 2022 08:59

In April, sales of domestically-assembled cars and completely built-up (CBU) cars surged by 16 per cent and 13 per cent per month, respectively. — Photo

Members of the Viet Nam Automobile Manufacturers Association (VAMA) sold 42,359 autos in April, up 14 per cent on the month and 40 per cent on the year, according to a recent VAMA report.

This was the second consecutive month of this year when VAMA members had witnessed an auto sales growth. In March, the growth rate was 60 per cent.

In April, passenger car sales surged 18 per cent on month to 33,588, while 7,795 commercial vehicles found customers, up 2.6 per cent, and 776 special-use cars were sold, up 15 per cent, according to a VAMA report released on May 12.

Sales of domestically-assembled cars and completely built-up (CBU) cars surged by 16 per cent to 25,269 units and 13 per cent to 17,090 units in the month, respectively.

Apart from VAMA members, non-member automakers Thanh Cong Motor and VinFast sold 6,959 units and 2,427 units last month.

In the first four months of 2022, VAMA members sold 132,865 units, up 31 per cent year on year, of which passenger cars were up by 47 per cent, commercial vehicles up by 8 per cent and special-use vehicles up by 19 per cent.

During the period, sales of domestically-assembled cars and imported CBU cars increased by 38 per cent to 79,442 and 22 per cent to 53,423 year-on-year, respectively.

The market performance showed that in the first four months of 2022, the auto sale of VAMA members maintained relatively high growth. Especially, the growth rates of domestically-assembled cars in April and the first four months were higher than the levels of CBU imported cars.

Consumers continued to buy domestically-assembled cars to enjoy an incentive of a 50 per cent reduction in registration fees according to the Government's Decree 103/2021/ND stipulating the registration fee level for domestically manufactured and assembled automobiles. This registration fee reduction has been applied from December 1, 2021, to May 31, 2022.

This policy pushed the auto consumption up and made some imported car brands lower prices or increase promotions to compete with domestically assembled cars.

According to representatives of some auto companies, the car sales in April and the first four months of 2022 had remarkable growth rates due to economic stability and the well-controlled pandemic.

However, manufacturers are still facing a global semiconductor crisis. The global lack of chips and high-tech components significantly affected car manufacturers. That led to a short supply of some car models in the market.

That situation made some car manufacturers and dealers adjust car selling prices and hoard some hot car models.

Experts said the domestic auto market will continue to grow strongly following months due to the controlled COVID-19 pandemic in Viet Nam and the reduction of 50 per cent in registration fees for domestically manufactured and assembled cars until the end of May.

The auto sales on the domestic market are expected to reach the milestone of 500,000 vehicles this year. — VNS

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