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Vietnamese car consumption is at a record low in 5 years

The number of cars sold in the entire market in February 2024 only reached 11,633 units, down 40% compared to the previous month and down 50% compared to the same period in 2023.

This is a record low level of car consumption in at least the past 5 years in the Vietnamese market. Before reaching a 5-year bottom last February, the time when the market had the lowest purchasing power was February 2021 with 13,585 units. Note that February 2021 falls during the period of social distancing due to the Covid-19 pandemic.

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Statistics from the Vietnam Automobile Manufacturers Association (VAMA) show that the group of passenger cars was hardest hit with only 8,099 units sold on the market, down 45% compared to the first month. year. Commercial vehicles reached 4,478 units, down 21%. The segment with the deepest decrease rate of 48% is specialized vehicles with 56 units sold on the market but not much affected because the capacity is too small.

In terms of origin, domestically produced and assembled cars (CKD) have been able to slow down the decline better thanks to proactive supply and demand stimulation policies. Specifically, the sales volume of CKD cars in February 2024 reached a total of 6,662 units, down 32% compared to the previous month. Meanwhile, imported completely built-up (CBU) vehicles reached 4,971 units, down 47% compared to the previous month.

Also according to VAMA's report, the total accumulated volume of Vietnam's automobile market in the first 2 months of this year reached 30,876 units, down 23% over the same period last year. Of which, the passenger car segment reached 22,844 units, down 26%; the Commercial vehicle segment reached 7,868 units, down slightly by 12%; the Specialized vehicle segment reached 164 units, a loss of 59%.

The domestically assembled car group was more severely affected when accumulated in the first 2 months of the year with 16,445 units sold on the market, down 27% compared to the same period in 2023. The imported car group decreased by 19%, reaching a turnover of 14,431 units.

Representatives of several major car manufacturers said that the most important reason leading to the record decline in car sales in February 2024 is due to the impact of the long Tet holiday.

However, this is only a temporary and short-term cause. Before the statistics for February this year were available, February 2021 was also affected by the double impact of the Tet holiday and also a period of local market freeze due to the Covid-19 pandemic.

Economic experts say that the reason car purchasing power is getting weaker is because the macro economy has not yet escaped difficulties even though positive signs are appearing more and more.

To soon escape the bottom of purchasing power, automobile businesses have begun to actively launch discount and promotional programs right from the beginning of the year. A series of large car manufacturers such as Ford, Toyota, Mitsubishi, Hyundai, Honda and VinFast... are all applying strong incentives to attract consumers back to shopping. The auto business community expects that the picture of Vietnam's auto market will gradually become brighter in the following months and grow again in the last 6 months of the year.

(Tap Chi Giao Thong)


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