Auto sales decline

Despite a surge in the sales of sedans, the poor business results of commercial cars and multi-purpose vehicles (MPVs) pulled down the overall result of the auto market in October.

According to a report of the Vietnam Automobile Manufacturers’ Association (VAMA), its members sold nearly 9,260 units in October, dropping 770 units against the previous month and 11% year-on-year.

Around 3,370 commercial cars and 1,830 MPVs were consumed, falling by 31% and 18% respectively, said VAMA.

Meanwhile, sales of sedans continued the hefty growth with 3,774 units sold, a rise of 17% over the same period last year. However compared to September, the number of sedans sold last month still fell by 371 units.

The sales volume of commercial cars in October reflected the impact of economic difficulties on local enterprises, because the major customers of this segment are transport companies.

On the other hand, local demand for personal vehicles is on the up, pushing up the sedan segment further.

In addition, the good business results of VAMA members are owing to several auto importers having run out of products and are now banned from continuing their import business under Circular 20/2011/TT-BCT of the Ministry of Industry and Trade effective from June 2011.

Consumers, though, have been left with fewer choices, switching to buy locally-assembled vehicles or from other importers, mostly members of VAMA. Also the release of new car models including those aimed at female drivers and residents of big cities have made a great contribution to promote the automobile market share of VAMA members.

In October, Toyota Vietnam maintained its place at the top of the market with almost 3,000 vehicles sold, a rise of 11%, followed by Thaco Group, GM Vietnam, and Ford Vietnam.

Overall, members of VAMA have sold 89,930 units in the January-October period, up by 2% year-on-year. Sedans still recorded high growth of 29.7% against the same period last year, while MPVs inched up 1% and commercial cars dwindled by 15%.