Production line at Thành Công Group’s factory in northern Ninh Binh province. — VNA/VNS Photo Đức Phương |
HOINOI — 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 insiders.
According to a report by the Automobile Manufacturers Association of Southeast Asia (AAF), Indonesia ranked first with car sales exceeding 1 million units in 2023, down 4% from the same period last year. Malaysia ranked second with 799,731 units, an increase of 10.9% compared to 2022, while Thailand ranked third with 775,780 units, an 8.7% decrease compared to 2022.
The Philippines ranked 4th with 429,807 units, an increase of 21.9% compared to 2022. Vietnam fell to 5th place with 301,989 units, a 25.4% decrease compared to 2022. Singapore and Myanmar followed with 38,670 units 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. Passenger cars decreased by 27% compared to the previous year, commercial vehicles decreased by 16%, and special vehicles decreased by 56%.
Specifically, 181,380 locally assembled vehicles and 120,600 CBU vehicles were sold, 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.
According to experts, the auto industry is sluggish due to a variety of factors, including unpredictable economic development 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 percent reduction in registration fees for domestically produced and complete vehicles from July 1, 2023 to December 31, 2023. In addition, businesses are encouraged to sponsor the remaining 50 percent of fees or provide registration fees. 100% fee incentive for imported cars. However, despite these efforts, the automobile market has not made significant progress in sales.
Automotive purchasing power is expected to increase in early 2024 due to increased shopping needs associated with Chinese New Year celebrations. However, future purchasing power remains uncertain in the coming months as automakers adjust incentives and business policies, potentially impacting sales. —VNS