Car sales in Vietnam dropped 30% in the first half from a year earlier to 47,909 vehicles, as a weakening economy hit demand, according to the Vietnam Automobile Manufacturers Association.
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However June sales by the 16 car makers operating in the country were down just 1% year on year to 9,699 units after the government halved its value-added tax to 5 percent, the Association added.
Dealers said demand could still slow significantly for the rest of the year as consumers shelve big-ticket items such as cars and houses. Last year, car sales rose 37% to a record 110,186 units.
Vietnam’s economy grew an estimated 3.9% in the first six months from a year earlier, slowing from annual growth of 6.5% in the same period last year, the government said last week.
Toyota retained top position in Vietnam although its first half sales were down 13% to 10,907 vehicles. Ford fell nearly a third to 2,699 units.
