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Auto sales may drop 20% this year, says TMV
2012-0109
The auto sales volume of the Vietnam Automobile Manufacturers Association (VAMA)’s members would decline by 20% this year, given the new policy and other economic difficulties, said the top automaker on the market.
Akito Tachibana, general director of Toyota Motor Vietnam (TMV), predicted that sales would contract sharply in 2012 as the Government adopted policies to fight traffic congestion in major cities. Last year, the market size, including imported automobiles, amounted to 140,000 units, still a fall of 8% from the previous year.
Starting from this year, the vehicle registration fees are adjusted up to 20% in Hanoi and 15% in HCMC, together with the increased license plate fees of VND20 million. This will push up the total costs to own a car, and drag down the market demand accordingly, said Tachibana.
Moreover, given the Government’s target to sacrifice economic growth to curb inflation this year, the auto market will face more challenges and hardly record any significant growth compared to 2011.
Speaking to the Daily, Tachibana stated his firm would reconsider the production plan for 2012. Furthermore, when the automobile import tariffs are removed in 2018 under Vietnam’s commitments to ASEAN, more pressure will be put on the automakers active in the local market.
Tachibana stressed TVM would strive for stable production in Vietnam’s market through localization and cost reduction to create advantages for locally manufactured products as imported products from ASEAN countries are to enjoy 0% tax rate in six years’ time.
He advised local auto producers to make good preparation and enhance their competitiveness from now. Otherwise, they would be forced to halt production and switch to import, like what happened to the electronics industry in 2009-2010.
In addition, he suggested the Government should have long-term strategy to assist the development of the auto industry, leading to the development of supporting industries.
Tachibana, who used to serve as chairman of VAMA, said there was a significant change in local auto market last year, with the drastic growth of personal vehicles while sales of commercial vehicles witnessed a drop.
Akito Tachibana, general director of Toyota Motor Vietnam (TMV), predicted that sales would contract sharply in 2012 as the Government adopted policies to fight traffic congestion in major cities. Last year, the market size, including imported automobiles, amounted to 140,000 units, still a fall of 8% from the previous year.
Starting from this year, the vehicle registration fees are adjusted up to 20% in Hanoi and 15% in HCMC, together with the increased license plate fees of VND20 million. This will push up the total costs to own a car, and drag down the market demand accordingly, said Tachibana.
Moreover, given the Government’s target to sacrifice economic growth to curb inflation this year, the auto market will face more challenges and hardly record any significant growth compared to 2011.
Speaking to the Daily, Tachibana stated his firm would reconsider the production plan for 2012. Furthermore, when the automobile import tariffs are removed in 2018 under Vietnam’s commitments to ASEAN, more pressure will be put on the automakers active in the local market.
Tachibana stressed TVM would strive for stable production in Vietnam’s market through localization and cost reduction to create advantages for locally manufactured products as imported products from ASEAN countries are to enjoy 0% tax rate in six years’ time.
He advised local auto producers to make good preparation and enhance their competitiveness from now. Otherwise, they would be forced to halt production and switch to import, like what happened to the electronics industry in 2009-2010.
In addition, he suggested the Government should have long-term strategy to assist the development of the auto industry, leading to the development of supporting industries.
Tachibana, who used to serve as chairman of VAMA, said there was a significant change in local auto market last year, with the drastic growth of personal vehicles while sales of commercial vehicles witnessed a drop.
Source: SGT
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