Hanoi: The decline in domestic car consumption and its fall to No. 5 in Southeast Asia can be attributed to both external and internal factors, according to industry sources.
The Association of Southeast Asian Automotive Manufacturers (AAF) reported that Indonesia topped the list with more than 1 million car sales in 2023.
This was a 4% decrease compared to the same period last year.
Malaysia ranked second with 799,731 units, an increase of 10.9% compared to 2022.
On the other hand, Thailand ranked third with 775,780 units, down 8.7% from 2022.
The Philippines ranked fourth with 429,807 units, an increase of 21.9% compared to 2022.
Vietnam fell to 5th place with 301,989 units, down 25.4% from 2022.
This is followed by Singapore and Myanmar, with 38,670 and 3,357 units, respectively, in 2023.
According to the Vietnam Automobile Manufacturers Association (Vama), all three automotive segments experienced a significant decline in 2023.
Sales of passenger cars decreased by 27% compared to the same period last year, sales of commercial vehicles decreased by 16%, and sales of special vehicles decreased by 56%.
Specifically, we sold 181,380 locally assembled vehicles and 120,600 completed vehicles.
This was a decrease of 20% and 32%, respectively, compared to 2022.
These figures do not include sales of non-member brands such as VinFast, Audi, Jaguar, Land Rover, Nissan, Subaru and Volkswagen. This is because each brand has not yet released sales data.
VinFast currently does not provide monthly sales data in Vietnam.
Experts say the auto industry is in decline.
This is due to a variety of factors, including unpredictable developments in the economy and instability in bank interest rates.
These factors affect people’s purchasing power and lead to a decline in car sales.
To address this situation and stimulate the market, the government has taken certain measures.
One of these measures is a 50% reduction in registration fees for cars produced and assembled in the country from July 1, 2023 to December 31, 2023.
In addition, companies are encouraged to support the remaining 50% commission or offer 100% commission incentives on imported vehicles.
However, despite these efforts, the automobile market has not made significant progress in sales.
Automotive purchasing power is expected to increase in early 2024.
This is due to increased shopping needs related to Lunar New Year celebrations.
However, future purchasing power in the coming months remains uncertain.
This is because automakers may adjust incentives and business policies, which could affect sales. — Vietnam News/ANN