Vietnam’s car sales have fallen to its lowest level since 2015

September 13, 2021 | 13:09
The Vietnam Automobile Manufacturers’ Association (VAMA) announced a significant slump in overall August sales, which is the deepest decline since 2015.
Vietnam’s car sales have fallen to its lowest level since 2015
Vietnam’s car sales experienced the fifth consecutive month of decreasing sales

Accordingly, car brands in Vietnam sold a total of 8,884 vehicles in August 2021, down 45 per cent against July 2021 and by 57 per cent against August 2020. This is the fifth consecutive month that the market has posted shrinking sales. This is also the lowest sales performance in the industry since 2015.

Specifically, sales of passenger cars in August dropped 40 per cent from a month earlier to 6,231 units. Commercial vehicle deliveries plunged 55 per cent to 2,344 units while special-purpose vehicles contracted 33 per cent to 309 units.

Deliveries of Completely Knocked Down (CKD) vehicles tumbled 41 per cent to 5,345 units. Meanwhile, sales of Completely Built Unit (CBU) vehicles fell 41 per cent to 3,539 units.

Since the fourth outbreak of the COVID-19 pandemic, many factories of VAMA members have had to temporarily close. Others that have reopened now have surplus stock that they cannot sell. More than 200 dealers of VAMA members remain closed while over 200 service workshops cannot operate due to the pandemic.

Supply chains have been stagnated while logistics has been seriously affected. Some brands have reduced sales by up to 60 per cent.

In addition to VAMA member companies, the sales of other large automobile enterprises such as Thanh Cong and VinFast also decreased sharply in August.

Accordingly, VinFast only sold more than 2,300 units in August, down more than 1,400 units or 37 per cent compared to July. Meanwhile, Thanh Cong Hyundai sold more than 2,100 units in August, fell nearly 50 per cent against the previous month.

A representative of a local automobile brand attributed the shrinking sales to the prolonged social distancing measures to combat the COVID-19 pandemic in several localities. August 2021 also coincides with the seventh lunar month also known as the month of the lonely ghost, when consumers are hesitant to make new purchase.

By Vy Nguyen

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