Auto sales plunge despite registration fee cut by half
2023 was a challenging year for the Vietnamese automobile market as sales fell 25% year-on-year despite a 50% cut in the registration fee from July 1, according to the Vietnam Automobile Manufacturers Association (VAMA).
The VAMA said on January 10 that its members sold only 301,989 vehicles in the year, with the sales of domestically-assembled automobiles declining 20% to 181,380 units, and the number of imported completely built-up autos dropping 32% to 120,609.
Experts blamed economic headwinds caused by the COVID-19 pandemic and unprecedented socio-political developments across the globe over the past time.
Toyota led sales at 57,414 units, followed by Kia 40,733, Ford 38,322, Mazda 35,632, Mitsubishi 30,894, and Honda 23,802.
Earlier, the association described the registration fee cut for locally-made or assembled cars and increasing demand in the end of the year as a driving force for auto dealers and producers to regain sales growth momentum.
In fact, the auto market saw rosy recovery in December, the last month that the Government’s registration reduction was applied, with 38,740 units sold, up 39% from the previous month.
As for 2024, economic recovery and better demand are said to be in store for the auto market, experts said, adding dealers and producers should capitalise on all opportunities to renew their business strategy and improve competitive edge.
