Sales of domestically assembled cars in Vietnam rose 19 percent in2013, the Vietnam Automobile Manufacturers Association (VAMA) said.
Asmany as 110,519 vehicles were sold in 2013. The sales of sport utilityvehicles (SUV) and multi-purpose vehicles (MPV) registered the highestgrowth rate of 39 percent, followed by the passenger cars and commercialvehicles segments, which saw growth rates of 28.7 percent and threepercent, respectively.
The latest data, which excludesadjustments for seasonal factors, came from VAMA, which comprises thecountry's 18 leading car makers.
The recovery in demand last yearwas aided by a brighter economic outlook, attractive financing deals,price discounts and lower car registration fees.
The resultssurpassed the industry group's forecast of 10 percent for the entireyear and marked a strong rebound in one of the smallest auto market inthe region after years of stagnating growth.
In December alone, local auto makers sold 13,205 units, a year-on-year increase of 32 percent.
"Thisis the ninth consecutive month that industry volume has been higherthan the corresponding period last year," said VAMA chairman JesusMetelo Arias in a statement released late last week.
While theincrease in December sales can be attributed to the peaking of thetraditional shopping season towards the year-end, recent attractivediscounts offered by auto makers have also helped improve sales,industry insiders said.
To revive the market after its prolongedslow growth phase, most car makers reduced their retail prices bybetween 6 million VND (295 USD) and 58 million VND (3,330 USD).
While Toyota cut the price on its popular Corolla Altis sedan by 6 million VND, GM's Cruze Sedan was cheaper by 30 million VND.
Mitsubishioffered a whopping 58 million VND discount, the largest across carmanufacturers, on its Pajero Sport model, while slashing the price ofits Triton pickup truck by 40 million VND.
Even Suzuki, aJapanese car maker that rarely offers discounts, decreased the price ofits compact Swift model by 30 million VND.
Some car manufacturersalso offered promotional gifts, such as free car insurance, free cartuning service packages and installment payment options at preferentialinterest rates.
In addition, the government's decision to lowerthe registration fee, issued in March 2013, contributed to increaseddemand in the market, even during difficult economic times.
Mostcities and provinces have reduced the registration fees to 10 percent ofthe value of the vehicles. Ho Chi Minh City reduced the registrationfee to 10 percent as of January 1, 2014, while Hanoi cut the car tax to12 percent, which is still the highest registration fee in the country.
The growth in sales was helped by a 32 percent surge in demand in December, VAMA said.
Thesurprising 2013 sales have prompted VAMA to revise upwards this year'sestimate of vehicle sales to 120,000 units, according to VAMA chairmanJesus Metelo Arias.
Auto imports were up last year as well inVietnam, making one of the smallest auto markets in the region also oneof the few markets to post a growth in imports, despite a globaleconomic downturn.
The Vietnam auto market in 2013 alsoexperienced a strong increase in the imports of completely built-upunits (CBUs). As many as 34,500 CBUs valued at 709 million USD wereimported into the country, up 25.9 percent in volume and 15.2 percent invalue year-on-year, according to the General Department of Statistics.
However,the number of vehicles imported this year is lower than in 2011, when54,600 units valued at over 1 billion USD were imported.
Importsare expected to increase in 2014 after the government cut the import taxon cars from ASEAN countries to 50 percent, effective from January 1this year.
The tax cut is in compliance with Vietnam signing the ASEAN Trade in Goods Agreement (ATIGA).
WhileASEAN countries are not centres for automobile production, there aresome large manufacturing giants, such as Japan's Toyota and Honda.
Statisticsby the Customs Office revealed that 8,826 cars, valued at nearly 150million USD, were imported into Vietnam from Thailand and Indonesia inthe first 11 months of 2013, more than double the imports in the sameperiod in 2012.-VNA
Asmany as 110,519 vehicles were sold in 2013. The sales of sport utilityvehicles (SUV) and multi-purpose vehicles (MPV) registered the highestgrowth rate of 39 percent, followed by the passenger cars and commercialvehicles segments, which saw growth rates of 28.7 percent and threepercent, respectively.
The latest data, which excludesadjustments for seasonal factors, came from VAMA, which comprises thecountry's 18 leading car makers.
The recovery in demand last yearwas aided by a brighter economic outlook, attractive financing deals,price discounts and lower car registration fees.
The resultssurpassed the industry group's forecast of 10 percent for the entireyear and marked a strong rebound in one of the smallest auto market inthe region after years of stagnating growth.
In December alone, local auto makers sold 13,205 units, a year-on-year increase of 32 percent.
"Thisis the ninth consecutive month that industry volume has been higherthan the corresponding period last year," said VAMA chairman JesusMetelo Arias in a statement released late last week.
While theincrease in December sales can be attributed to the peaking of thetraditional shopping season towards the year-end, recent attractivediscounts offered by auto makers have also helped improve sales,industry insiders said.
To revive the market after its prolongedslow growth phase, most car makers reduced their retail prices bybetween 6 million VND (295 USD) and 58 million VND (3,330 USD).
While Toyota cut the price on its popular Corolla Altis sedan by 6 million VND, GM's Cruze Sedan was cheaper by 30 million VND.
Mitsubishioffered a whopping 58 million VND discount, the largest across carmanufacturers, on its Pajero Sport model, while slashing the price ofits Triton pickup truck by 40 million VND.
Even Suzuki, aJapanese car maker that rarely offers discounts, decreased the price ofits compact Swift model by 30 million VND.
Some car manufacturersalso offered promotional gifts, such as free car insurance, free cartuning service packages and installment payment options at preferentialinterest rates.
In addition, the government's decision to lowerthe registration fee, issued in March 2013, contributed to increaseddemand in the market, even during difficult economic times.
Mostcities and provinces have reduced the registration fees to 10 percent ofthe value of the vehicles. Ho Chi Minh City reduced the registrationfee to 10 percent as of January 1, 2014, while Hanoi cut the car tax to12 percent, which is still the highest registration fee in the country.
The growth in sales was helped by a 32 percent surge in demand in December, VAMA said.
Thesurprising 2013 sales have prompted VAMA to revise upwards this year'sestimate of vehicle sales to 120,000 units, according to VAMA chairmanJesus Metelo Arias.
Auto imports were up last year as well inVietnam, making one of the smallest auto markets in the region also oneof the few markets to post a growth in imports, despite a globaleconomic downturn.
The Vietnam auto market in 2013 alsoexperienced a strong increase in the imports of completely built-upunits (CBUs). As many as 34,500 CBUs valued at 709 million USD wereimported into the country, up 25.9 percent in volume and 15.2 percent invalue year-on-year, according to the General Department of Statistics.
However,the number of vehicles imported this year is lower than in 2011, when54,600 units valued at over 1 billion USD were imported.
Importsare expected to increase in 2014 after the government cut the import taxon cars from ASEAN countries to 50 percent, effective from January 1this year.
The tax cut is in compliance with Vietnam signing the ASEAN Trade in Goods Agreement (ATIGA).
WhileASEAN countries are not centres for automobile production, there aresome large manufacturing giants, such as Japan's Toyota and Honda.
Statisticsby the Customs Office revealed that 8,826 cars, valued at nearly 150million USD, were imported into Vietnam from Thailand and Indonesia inthe first 11 months of 2013, more than double the imports in the sameperiod in 2012.-VNA
