Auto sales suffer their sharpest drop in five years

March 14, 2024 | 15:05

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According to a recent report from the Vietnam Automobile Manufacturers’ Association (VAMA), recorded sales of vehicles for February were down 40 per cent from the previous month and 50 per cent on-year, representing the largest decline in almost five years.

Vietnam’s auto sales suffered the sharpest drop in five years

Data by VAMA shows that sales of passenger cars were hit the hardest, down 45 per cent from January. Sales of commercial vehicles were down 21 per cent. Meanwhile, special-purpose vehicles declined by 48 per cent.

Automakers slowed the downward momentum of completely knocked-down (CKD) sales thanks to a more proactive supply chain and the benefit of demand stimulation policies. Sales of CKD vehicles were down 32 per cent in February from the previous month. Meanwhile, completely built vehicles saw a drop of 47 per cent for the same period.

According to industry experts, consumers have tightened their budgets amid the current economic difficulties, with many purchasing cars before a policy that halved registration fees expired in December.

Many car manufacturers have launched promotional campaigns offering discounts since the beginning of the year with the likes of Ford, Toyota, Mitsubishi, Hyundai, Honda, and VinFast applying attractive incentives to pull in buyers.

Industry experts expect Vietnam's vehicle market to gradually improve in the following months and see steady growth in the last six months of the year.

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Amid a challenging economic environment, Vietnam's auto sales continues their downward trend, falling 31 per cent from a year earlier in October.

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By Vy Bui

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