AAA weekly

2021-09-14

Vietnam’s Automobile Sales Results in YTD June 2021

Vietnam’s automobile sales in the first six months of 2021 increased 40.4% year-on-year to 150,000 units according to the announcement of the Vietnam Automobile Manufacturers’ Association (VAMA) which only releases data on member companies. It was about the same level as in the first half of 2019 when sales reached 154,000 units, recovering from the deep slump of 107,000 units in the first six months of 2020 caused by the outbreak of the new coronavirus infection. If the sales total of two non-VAMA members Hyundai Thanh Cong Vietnam (HTCV), a local subsidiary of Hyundai, and VinFast, a Vietnamese manufacturer which entered the market in 2019, is added to VAMA’s figure, combined sales reach 200,000 units in the first half of 2021, surpassing the sales result of the same period in 2019.

Taking the combined sales volumes of VAMA, HTCV and VinFast as the total market, Kia and VinFast increased their share for the second consecutive term from 2020 to the first half of 2021 while Hyundai has maintained its top position since 2020. Kia sold 7,209 units of the Seltos, which was launched in July 2020, in the first half of 2021. VinFast, which started selling automobiles in June 2019, sold 10,000 units of its flagship model the Fadil in the first half of 2021, making it the best-selling model in the Vietnamese market.

In the first half of 2021, the increase in imported vehicle sales was remarkable. According to VAMA, 85,000 locally-assembled vehicles and 65,000 imported completely built-up units (CBU) were sold, the ratio of imported CBUs reaching a record high level of 43.5%. The 50% tax reduction on the registration fee for locally-assembled cars, which was implemented by the government in June 2020 as a measure to stimulate demand for automobiles, ended at the end of 2020, and so demand for locally-assembled cars declined in the first half of 2021.

In July 2021, lockdown was implemented in Hanoi and Ho Chi Minh City due to the spread of a mutant strain of the new coronavirus, so the market has begun to cool down again. Although it depends on future policies, full-year 2021 is not expected to reach the level of 2019.

(SEKISHIRO Rie)