Automobile companies have seen profits down since the beginning of this year despite robust car sales in the domestic market. — Photo infonet.vn

Five listed auto companies on the two stock exchanges reported combined profits of VND271 billion (US$12.2 million) in the first half of 2016, a drop of 56.4 per cent from the same period last year.

Four of the five reported lower profits in the first six months, with Hoang Huy Investment Services Co (HHS) posting the largest year-on-year decline of 75.6 per cent, down from VND336 billion in 2015 to VND82 billion in 2016.

TMT Motors Corporation (TMT) also saw its profits fall significantly to VND47 billion in the first six months of this year, down 66 per cent year-on-year.

First-half profits of two other companies, Truong Long Auto & Technology Co (HTL) and Sai Gon General Service Corp (SVC), were also down 36.3 per cent and 1.4 per cent, respectively.

Only Hang Xanh Motors Service Co (HAX) saw its six-month profits inch up 2.1 per cent to reach VND33.4 billion.

Hoang Huy explained that the company was focusing its investments on manufacturing new products, while other firms said higher discounts offered to their dealers pushed up sales costs.

According to the Vietnam Automobile Manufacturers' Association (VAMA), car sales grew 31 per cent in the first half of 2016.

The high increase was attributed to strong purchasing demand ahead of the adjustment in special consumption tax on cars, which went into effect on July 1, 2016.

Along with slumps in profits, share prices of most automobile companies have tumbled between 10 and 44 per cent, except for the shares of Hang Xanh Co (HAX), which rose 8 per cent since the beginning of the year. —  VNS