Vietnam’s new vehicle sales fell 12.9% year on year to 9,439 units in July, from 10,839 units a year earlier, according to data released by the Vietnam Automotive Manufacturers Association.
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The slump came after a strong rebound in the second quarter, following a weak start to the year after the VAT rate was increased from 5% to 10% in January. GDP growth accelerated in the second quarter to an estimated 6.2-6.4%, albeit compared with weak year earlier data.
July demand was weaker across all main market segments, with SUVs and MPVs leading the decline with a 20% drop to 1,809 units. Passenger car sales were down by 12.9% to 2,779 units, while sales of commercial vehicles fell by 9.9% to 4,811 units.
Overall vehicle sales in the first seven months of the year were ahead by just 1.6% at 59,717 units, compared with 58,748 units a year earlier. Passenger car sales were 20% higher at 16,912 units, commercial vehicle sales were flat at 30,278 units, while MPVs and SUVs volumes were down 12% down at 12,527 units.
Toyota’s sales in the seven month period were up 21% to 16,541 units. Truong Hai, which assembles Kia and Foton-based vehicles, reported a 22% increase to 13,363 units. Third-placed Vinamotor, which makes trucks and buses, reported an 18% drop to 7,141 units.
