Vehicle sales in Vietnam fell by 11% to 8,544 in July, from 9,570 units a year earlier, according to the Vietnam Automotive Manufacturers Association.

The market was driven lower by declining demand for commercial vehicles, down by 27% to 3,599 units, and by weak demand for SUVs and MPVs – down by 13% to 1,611 units for the month. 

Sales of passenger cars bucked the trend however, with sales rising by 20% to 3,334 units, with buyers encouraged to hedge against inflation. High taxes continue to be a major drag on the market, however.

Cumulative sales for the seven month period were up by just 1% to 61,132 units, with a decline in commercial vehicle sales of 12% to 27,248 units offset by higher passenger vehicle sales. Passenger cars sales increased by 25% at 21,118 units while SUV/MPV sales were up by just 2% at 12,766 units.

Market leader Truong Hai, which assembles Kia cars and various commercial vehicles, increased sales by over 35% to 18,050; followed by Toyota with 15,932 units (-4%); and GM-Daewoo 5,370 units (+6%).