Car sales in Vietnam surge 22% in November

The number of cars sold in Vietnam in November increased by 9% month-on-month and 22% year-on-year to 36,359 units, which came on the back of strong growth of 22% inter-monthly in the sales volume in October, according to data released monthly by the Vietnam Automobile Manufacturers' Association (VAMA).

Number of car sales in January-November. Source: VAMA.

The volume included 28,755 passenger cars, up 13% inter-monthly; 7,122 commercial cars, down 5%; and 482 special-purpose vehicles, up 25%. 

As many as 23,509 locally assembled cars were sold in November, up 15% against the previous month, and 12,850 imported cars were sold, up 0.7%.

However, car sales in Vietnam in the January–November period dropped 14% year-on-year to 246,768 units across all segments. Meanwhile, sales of domestically assembled cars reached 158,306 units during the period, down 7% compared to the same period of last year, while imported completely-built-units (CBUs) totaled 90,462 units (-24%).

Truong Hai Auto Corporation (Thaco) led the market in the first eleven months with 84,858 units sold, up 2% year-on-year and accounting for 35.5% of the total sales number, followed by TC Motor with 68,062 and Toyota with 59,394.

The market expects the number of car sold in the final month of this year to exceed that of in November, as the government's policy of 50% reduction in the registration fee for domestically-produced cars is set to expired by year-end. 

That policy, along with other sales promotion program during the final festive period of the year, is expected to further heat up the domestic car market. 

Sales of imported cars down 24% year-on-year in January - November period. Source: VAMA.

92% of car imports from Thailand, Indonesia and China

Data from the General Department of Vietnam Customs showed the number of imported cars increased by 7.8% month-on-month in October to 13,653 units, worth US$283 million.

Notably, 92% of imported cars in Vietnam in October came from Thailand, Indonesia and China, with the corresponding volumes of 7,599, 4,048 and 918 units.

Overall, 80,110 cars were imported into Vietnam between January and October, down 33.8% year-on-year.

Car making is considered a key industry in Vietnam, accounting for approximately 3% of national GDP. However, the industry has severely been impacted by the Covid-19 pandemic. Viet Dragon Securities Company predicted a decline of 15% made-in-Vietnam cars in sales volume this year.