New vehicle sales in Vietnam declined again in December 2019, by 3.3% to 31,425 units from 32,511 units in the same month of the previous year, according to wholesale data released by the Vietnam Automotive Manufacturers Association (VAMA).
The strong recovery seen earlier in the year came to a halt in the fourth quarter resulting in full year sales rising by less than 11% to 306,073 units from 276,817 units in 2018.
Passenger vehicle sales were up by close to 20% at 229,706 units last year, with the segment rebounding strongly from a sharp drop in the previous year when new regulations had a severe impact on imports.
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Commercial vehicle sales continued to struggle, however, with volume dropping by almost 10% to 76,367 units.
The economy remained strong throughout last year with average GDP growth of 7.0% driven by strong manufacturing, service sector and investment growth. Growth peaked at 7.5% in the third quarter, dropping back to 7% in the fourth quarter.
Truong Hai (Thaco) group, the local assembler and distributor of brands including Kia, Mazda and Peugeot and a significant player in the commercial vehicle segment, reported a 4.6% drop in group sales to 91,710 units last year. This included a flat performance by Mazda with 32,731 sales and a 3.9% rise in Kia sales to 30,103 units.
Toyota remained the leading vehicle brand in the country in 2019, with sales rebounding by over 20% to 79,328 units from depressed volumes in the previous year, while Honda sales rose by close to 22% to 33,102 units. Ford sales also recovered strongly last year, by 31% to 32,175 units.
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