Vietnam's car sales drop to just over 300,000 units in 2023

January 12, 2024 | 11:17

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Automakers under the Vietnam Automobile Manufacturers’ Association (VAMA) sold just over 300,000 units in 2023, a sharp drop of 25 per cent on-year.

Vietnam's car sales drop to just over 300,000 units in 2023

According to data from VAMA, passenger cars recorded an on-year decrease of 27 per cent to slightly over 230,700 units last year. Meanwhile, commercial vehicle sales contracted by 16 per cent to almost 70,000 units, and special-purpose vehicles plummeted by a staggering 56 per cent to just over 2,200.

Sales of completely knocked down (CKD) vehicles were down 20 per cent, with just under 181,400 units sold last year. At the same time, 120,609 completely built up (CBU) cars were sold, an on-year decline of 32 per cent.

In December, total auto sales rebounded by 39 per cent from November to nearly 38,800 units. Among them, around 30,300 passenger cars were sold, with 6,400 commercial vehicles, and 200 special-purpose vehicles, jumping by 20.5 per cent and 9 per cent on-month.

In the same month, CKD vehicle sales jumped by 33 per cent from a month earlier to over 24,000 units, and CBU vehicle sales surged by 49 per cent to almost 15,000 units.

Thanh Cong Group (TC Group), a non-VAMA member that specialises in assembling and distributing the Hyundai brand, recorded sales of over 10,800 units in December, an increase of 36.4 per cent compared to November and 14 per cent against the same period in the previous year.

In 2023, TC Group sold a total of 67,450 Hyundai cars, down more than 17 per cent compared to the same period in 2022.

The rebound in December was attributed to the year-end shopping season and a 50 per cent reduction in registration fees for domestically assembled cars.

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The decree aims to help enterprises in the domestic automobile manufacturing industry who are faced with high surplus inventory alongside reduced access to capital, high interest rates, changes in exchange rates, and inflation.