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Jun 15, 2020 / 15:29

Car sales in Vietnam surge 62% in May amid Covid-19 under control

The government’s decision to slash the registration fee for domestically-produced cars by 50% is set to further boost the sale of domestic cars in the two remaining quarters of this year.

The number of cars sold in Vietnam in May surged 62% month-on-month to 19,081 units, indicating the gradual recovery of the auto market in the post-Covid-19 period, according to monthly data from the Vietnam Automobile Manufacturers Association (VAMA).

 Car sales in Vietnam surged 62% in May. Illustrative photo

This included 13,009 passenger cars, up 67% month-on-month; 5,810 commercial cars, up 59%; and 262 special-purpose vehicles, down 16%. 

The sales volume of locally assembled cars in May was 11,095 units, up 50% month-on-month, and that of imported cars was 7,986 , up 83%.

Overall, car sales in Vietnam in the January – May period are dropped 36% year-on-year to 83,181 units across all segments. Upon breaking down, 59,098 were passenger cars, down 36% year-on-year; 22,579 were commercial vehicles, down 28%; and 1,504 were special-purpose vehicles, down 39%. 

Sales of domestically assembled cars reached 51,669 units during the period, down 32% compared to the same period of last year, while imported completely-built-units (CBUs) totaled 31,512 units, down 38%. 

Truong Hai Auto Corporation (Thaco) led the market in May with 5,829 units sold, followed by TC Motor (4,833) and Toyota (4,167).

Prime Minister Nguyen Xuan Phuc’s decision to slash the registration fee for domestically-produced cars by 50%, scheduled to take effect from June 20, is set to further boost sales of made-in-Vietnam cars in the two remaining quarters of this year.

Additionally, the deadline for payment of excise taxes for domestically-produced/assembled cars has been delayed until late 2020. The government said it would consider adjustments to the current excise tax policy to support domestic production.

Statistics from the General Department of Vietnam Customs (GDVC) revealed in the first five months of 2020, Vietnam imported 36,800 cars worth US$800 million, down 42.5% year-on-year in volume and 44% in value.

In May, the number of imported cars increased 5.7% month-on-month to 5,000 worth US$110 million, down 5.7% in quantity and 15.8% in value.

According to the GDVC, 50% of imported cars in Vietnam in May came from Indonesia with 2,500 cars, Thailand with 1,100, and Japan with 370, among others.