New vehicle sales in Vietnam fell by 24% to 5,858 units in June, compared with 7,696 units a year earlier, according to data released by the Vietnam Automotive Manufacturers Association.
The market has been in sharp decline since early in the first quarter after the government increased vehicle registration taxes. Retail interest rates remain prohibitively high at around 20%, with the government making controlling inflation its main priority.
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Passenger car sales were the worst hit, with volumes falling by 37% to 1,822 units; while sales of SUVs and MPVs were down by 20% at 1,108 units; and commercial vehicles 19% lower at 2,768 units.
First-half sales were 33% lower at 35,725 units, compared with 53,293 units a year earlier.
Market leader Truong Hai, which assembles Kia cars and various commercial vehicles, reported a 28% drop in first-half sales to 11,155 units; followed by Toyota with 10,357 units (-24%); and GM-Daewoo 2,738 units (-43%).
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By GlobalData
