Viet Nam vehicle sales keep up growth momentum in September

Saturday, Oct 11, 2014 11:36

HA NOI (Biz Hub)— Vehicle sales last September continued on the revival track taken since last May, on the back of multiple launches and improving consumer sentiment.

Viet Nam's 18 leading vehicle manufacturers sold a combined 16,149 units in September, representing a 29-per cent month-on-month increase and a 65-per cent year-on-year increase, according to the Viet Nam Automobile Manufacturers Association (VAMA).

Of the figure, cars made up 10,511 units, representing a 30-per cent month-on-month increase, and trucks made up 5,638 units, representing a 25-per cent month-on-month increase.

"This is the 18th consecutive month that industry volume has been higher than that of the same period last year," VAMA chairman Jesus Metelo Arias said in a statement released yesterday.

"The total number of vehicle sales for 2014 is predicted to hit 145,000 units, a 32-per cent year-on-year increase," Arias added.

Thaco, a domestic car manufacturer, retained its market leadership with sales of 4,195 units or 32 per cent of market share in September. Japanese manufacturer Toyota came in second with sales of 3,747 units or 29 per cent of market share, followed by US manufacturer Ford with sales of 1,390 units or 10.7 per cent of market share.

Booming sales were attributed to attractive financing deals, price discounts, cuts in car registration fees and a brighter economic outlook.

According to the Ministry of Planning and Investment, Viet Nam's economic growth rate in 2014 was set at 5.8 per cent and CPI growth at less than seven per cent.

Planning and Investment Minister Bui Quang Vinh said on Thursday the country's gross domestic product growth could reach 5.8 per cent or even higher this year.

The rise in vehicle sales last September was also attributed to the traditional peak in shopping towards the end of the year, usually beginning in mid-September.

In addition, a large number of vehicles that will become obsolete this year also helped trigger demand, as the Government stipulated that trucks more than 25 years old and cars more than 20 years old could no longer be used.

According to the Viet Nam Register, a total of 3,388 cars, 13,033 trucks and 67 buses will be taken off the road this year.

Rising imports

Meanwhile, about 7,000 completely-built units (CBU) were imported in September this year, bringing US$132 million in revenue, the General Statistics Office (GSO) reported.

The number of CBUs in September is about 1,000 units more than that in August, but revenue fell by $4 million.

The automobile market has been stable since last June, as the number of imported cars remained at 6,000 units and above per month, the highest in the last three years. — VNS

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