Vietnam’s vehicle market declined by 17.6% to 8,745 units in August, from 10,616 units a year earlier, according to data released by the Vietnam Automobile Manufacturers Association (VAMA). This follows a 13% drop in sales in July, after a strong second quarter for the market.
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All segments of the market performed poorly in August, with passenger cars leading the decline with a drop 23% to 2,724 units; followed by SUVs and MPVs with a 22% drop to 1,783 units. Commercial vehicle sales faired slightly better, but still showed a 12% volume decline to 4,164 units.
This latest data pulls this year’s cumulative total back into negative territory, with total sales in the first eight months of the year dropping by 1.1% to 68,843 units – albeit compared with a record 69,583 sales in the same period of last year.
The economy remains strong, with year-on-year GDP growth estimated at over 6% in the January-August period. A slowdown in automotive sales had been expected given the tax increases at the beginning of the year and the recent depreciation of the local currency.
Toyota managed to increase sales by 14.1% to 18.982 units in the eight-month period; and similarly Truong Hai, which assembles Kia and Foton-based vehicles, reported a 20.5% increase to 15,417 units. Third-placed Vinamotor, which assembles trucks and buses sourced from China and South Korea, reported a 19.1% drop in sales to 8,043 units.
