Vietnam car sales have more than doubled so far this year, according to the local automakers’ association.
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Headed by Toyota (one of the first to assemble some models locally), the 16 car makers sold a combined 77,067 units during the first seven months ending July, up 120% from the same period last year, the association said in its monthly report, according to Reuters.
Sales last month rose nearly one-third to 8,458 units from 6,474 units in July 2007, but were lower than 9,749 units sold in June, partly reflecting a slowdown in Vietnam’s economy.
The country’s economic growth slowed in the first half to an estimated 6.5% compared with the same period of 2007, when the annual growth was 7.91%, Reuters noted.
Dealers reportedly said demand would slow for the rest of the year after the government said it would triple registration fees to 15% from 14 August on top of a 36% rise in fuel prices from 21 July.
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By GlobalDataToyota and Honda Motor also have raised their prices, citing higher raw material prices globally and soaring inflation in Vietnam, Reuters reported.
Toyota retained its lead among the 12 manufacturers backed by foreign automaker, selling 14,941 cars, up 50% year on year.
Reuters said the government planned further import tax hikes to help reduce worsening road congestion, which dealers said had prompted purchases to surge before the new tax rate comes in – Vietnam has already raised tariffs on imported cars to 83% from 70% previously.
Car imports in July fell to 3,000 fully assembled units from 4,500 units in June but total imports since the start of this year still surged 290% from the same period last year to 43,000 units, according to government data.
