Vietnam car sales rise 34% in two-month period

The sales figure in February, however, was on the decline for two consecutive months with a contraction of 22% against the previous month to 13,585 units.

Customers at a showroom in Hanoi. Photo: The Hanoi Times

The number of cars sold in Vietnam in the first two months rose by 34% year-on-year to more than 53,500 units, a positive sign from the current economic recovery process, according to data released monthly by the Vietnam Automobile Manufacturers’ Association (VAMA).

The volume included nearly 43,000 passenger cars, up 41% year-on-year, while the remaining were commercial cars with 9,960 units and special-purpose vehicles with 765 units.  

As many as 32,310 locally assembled cars were sold in the period, up 41% against the previous month, and the figure for imported cars rose by 25% to 21,234 units.

Truong Hai Auto Corporation (Thaco) led the market in the first two months of 2022 with nearly 22,210 units sold, up 48% year-on-year and accounting for 43% of the total sales in the market, followed by TC Motor (11,600) and Toyota (10,656).

The number of car sales. Source: VAMA

The sales figure in February, however, has been on the decline with a contraction of 26% against the previous month to nearly 23,000 units, in which passenger cars made up a lion’s share of 17,600, or 76.5% of the total.

Experts have attributed such decline to a week-long Tet holiday in the month that causes a sharp fall in demand for cars during the period.

On the other hand, a  surge in sales of locally assembled cars showed customers are taking advantage of the 50% cut in registration fees to buy cars, scheduled to end on May 31, 2022.

Many expected an improved Covid-19 situation in Vietnam and ongoing Government support policies for the car market would lead to stronger growth in car sales figures in the coming months.

In this case, Vietnam’s car market is set to reach the 500,000-mark of units sold this year.