New vehicle sales in Vietnam declined 5% to approximately 22,000 units in June, according to the Vietnam Automotive Manufacturers Association (VAMA).
Photo for illustration (VOV5)
While the government has cut import tariffs to zero for vehicles originating from neighboring ASEAN countries and adopted incentive policies for domestically-built cars, Vietnamese consumers are waiting for newer models at lower prices.
June has always been a slow month for the automobile market, which should pick up again in the rest of the year, particularly after September. Vehicle importers and distributors are still adjusting to regulatory changes introduced by the Vietnamese government at the beginning of the year, including new minimum standards for emissions, warranties, and aftermarket services.
Total vehicle sales in the first half of this year were 125,000 units, a decrease of 6% from the same period last year. Sales of pickup trucks were almost 49% lower at 5,900 units, while passenger vehicle sales increased almost 11% to 82,900 units.
Truong Hai (Thaco) group, the local assembler and distributor of brands such as Kia, Mazda, Peugeot, and Hyundai and a significant player in the commercial vehicle sector, reported a 5.3% rise in group sales. Toyota remained the leading vehicle brand in the first half of the year, while Honda's sales more than doubled to 11,000 units.