Car imports from China surge in the first half of 2024

According to data from the General Department of Customs, in June 2024, 2,882 completely built-up (CBU) cars were imported from China, with a total turnover value of nearly 83 million USD, marking an increase of 117% in volume and 57.8% in value over the same period last year.

Explaining this sudden growth phenomenon, many experts believe that the simultaneous launch of a number of famous car brands from China such as BYD, GAC, Haval, Lynk & Co, Omoda and Jaecoo has created a wave of car imports from this country.

At the same time, the recovery of MG Cars has also contributed to this boom. Particularly noteworthy is the appearance of BYD, a brand that is facing many scandals globally but still quickly dominates the Vietnamese market.

The explanation for the sudden growth in CBU car imports from China is the rapid launch of a number of brands such as BYD, GAC, Haval, Lynk & Co, Omoda and Jaecoo, along with the quiet rise of MG Cars... recently.

In the first 6 months of 2024, Vietnam imported a total of 14,729 CBU cars from China, worth nearly 456 million USD. This is an increase of 152% in volume and nearly 104% in value compared to the same period in 2023. This not only reflects the trend of importing cars from China but also shows the increasing influence of car brands from this country in the Vietnamese car market.

Not only China, Indonesia also recorded impressive growth in the first half of this year. Statistics show that in June 2024, Vietnam imported 6,564 CBU cars from Indonesia with a total turnover of 98 million USD, up 65.5% in volume and 77.4% in value over the same period last year. In the first 6 months of the year, the total import turnover of cars from Indonesia reached 32,797 units and 478 million USD, up 26.2% in volume and 36% in value.

In contrast to the boom of Chinese and Indonesian cars, the number of imported cars from Thailand - one of Vietnam's key markets - has decreased sharply. Specifically, in the first 6 months of 2024, only 23,736 CBU cars from Thailand were imported into Vietnam, reaching a turnover of 463 million USD, down 26.7% in volume and 31.7% in value compared to the same period in 2023.

Since the ASEAN Trade in Goods Agreement (ATIGA) took effect on January 1, 2018, the import tax on completely built-up cars from Southeast Asian countries has been reduced to 0%, helping imported cars from Thailand and Indonesia increase sharply. However, 2024 will witness a clear change in the market balance, when imported cars from China and Indonesia become the two main sources of supply. This has sharply reduced the market share of Thai cars in Vietnam.

As of now, imported cars from Indonesia, Thailand and China almost dominate the entire imported car market in Vietnam, with the majority being low-cost cars. Meanwhile, high-end cars from the UK, Germany and the US continue to face difficulties in the face of a wave of cheap cars from China and Southeast Asia.

Source: https://www.congluan.vn/nhap-khau-o-to-tu-trung-quoc-tang-dot-bien-trong-nua-dau-nam-2024-post314281.html