Econ
Vietnam's auto sales hit record high in 2016
Vietnam`s total auto sales hit a record high of surpassing 300,000 units for the first time in 2016, the Vietnam Automobile Manufacturers Association (VAMA).
A newly-released VAMA report showed that last year, a total of 304,427 automobiles were sold in the Vietnamese market, up 24 percent year-on-year.
The figure much surpassed the earlier record set in 2015 with 244,914 auto units. In December alone, the country's auto sales reached 33,300 units, up 17 percent over November and 13 percent year-on-year.
In 2016, as many as 228,964 domestically-assembled cars were delivered to customers, up 32 percent year-on-year, and 75,463 imported completely built-up (CBU) autos were sold, an increase of 5 percent year-on-year.
Among VAMA members, local Truong Hai Auto Joint Stock Company (Thaco) took the lead with its sales totaling 112,847 units, accounting for 41.5 percent of the market. Toyota Vietnam came second with 57,036 units sold, accounting for 21 percent and Ford Vietnam third with 29,011 autos and 10.7 percent, respectively.
Local experts said the results beat expectations of automakers. Earlier, VAMA forecast an annual growth rate of around 10-15 percent in sales for the year of 2016.
Industry insiders expect sales of small cars to keep increasing sharply in the near future as Vietnam lowered its tariff rate from 45 percent to 40 percent last July and plans to cut it further to 35 percent in 2018. The policy applies to cars with engines smaller than 1.5 liters, which currently account for about half of the local market.
Completely-built units from neighboring countries are given a more favorable treatment. Since January 1, cars from Southeast Asian countries have been subject to a 30 percent tariff, compared to 40 percent previously. This will be completely removed from 2018, as part of an agreement between regional countries.
A booming economy has created more wealth for local consumers, who are switching from motorbikes to cars, and from cheap cars to luxury models. The economy is expected to grow 6.7 percent this year.
Meanwhile, over 3.1 million motorbikes were consumed in the Vietnamese market in 2016, posting a year-on-year increase of 9.5 percent. In the first six months of 2016, Vietnamese consumers bought over 1.444 million motorbikes while from July to December, the country's motorcycle sale hit some 1.676 million units.
Explaining why the number of sold motorbikes stood much lower than that of autos, local experts said Vietnam's motorbike consumption almost obtained the saturation level, so it can not enjoy sharp increase like autos.
VAMM groups five members - Honda, Yamaha, Piaggio, Suzuki and SYM - with 55 motorbike types.
The figure much surpassed the earlier record set in 2015 with 244,914 auto units. In December alone, the country's auto sales reached 33,300 units, up 17 percent over November and 13 percent year-on-year.
In 2016, as many as 228,964 domestically-assembled cars were delivered to customers, up 32 percent year-on-year, and 75,463 imported completely built-up (CBU) autos were sold, an increase of 5 percent year-on-year.
Local experts said the results beat expectations of automakers. Earlier, VAMA forecast an annual growth rate of around 10-15 percent in sales for the year of 2016.
Industry insiders expect sales of small cars to keep increasing sharply in the near future as Vietnam lowered its tariff rate from 45 percent to 40 percent last July and plans to cut it further to 35 percent in 2018. The policy applies to cars with engines smaller than 1.5 liters, which currently account for about half of the local market.
Completely-built units from neighboring countries are given a more favorable treatment. Since January 1, cars from Southeast Asian countries have been subject to a 30 percent tariff, compared to 40 percent previously. This will be completely removed from 2018, as part of an agreement between regional countries.
A booming economy has created more wealth for local consumers, who are switching from motorbikes to cars, and from cheap cars to luxury models. The economy is expected to grow 6.7 percent this year.
Meanwhile, over 3.1 million motorbikes were consumed in the Vietnamese market in 2016, posting a year-on-year increase of 9.5 percent. In the first six months of 2016, Vietnamese consumers bought over 1.444 million motorbikes while from July to December, the country's motorcycle sale hit some 1.676 million units.
Explaining why the number of sold motorbikes stood much lower than that of autos, local experts said Vietnam's motorbike consumption almost obtained the saturation level, so it can not enjoy sharp increase like autos.
VAMM groups five members - Honda, Yamaha, Piaggio, Suzuki and SYM - with 55 motorbike types.
