Vietnam Motor Show returns
Vietnam Motor Show (VMS) is always the focal point, the largest annual event in the automobile industry every year. After a 2023 suspension for many reasons, the event returned at the end of October 2024.
 |
| Vietnam Motor Show event returns in 2024. Photo: Tran Dinh |
Notably, many luxury car brands were absent from this year’s event, including Mercedes-Benz, BMW, Lexus, Audi, Volvo, and Volkswagen. In addition, popular brands such as VinFast, KIA, Mazda, and Peugeot were also absent.
However, this year's event still has some new things, typically the appearance of a series of fuel-efficient, environmentally friendly cars. The appearance of Chinese car manufacturers is also of interest because of their eye-catching features and appearance.
In addition, VMS 2024 will have the participation of a series of motorcycle brands such as Honda, SYM, Yamaha, UM Motorcycles, Harley-Davidson, Triumph, KTM and Husqvarna for the first time, showing the change of VMS organizers in approaching customers.
Reduce registration fees for domestically produced and assembled cars
Decree 109/2024/ND-CP clearly states that domestically manufactured and assembled cars are subject to a 50% registration fee support policy. This policy is effective from September 1, 2024 to November 30, 2024 and is applied in the context of a somewhat declining market in early 2024.
This is the fourth time this policy has been applied to stimulate the market, contributing to solving difficulties for businesses after the impact of the Covid-19 pandemic. The policy of reducing registration fees for domestically produced and assembled cars has increased significantly in the months of application. Although applied for a shorter period than previous periods, the recent reduction in registration fees has created an important boost for the domestic automobile market. According to a report by the Vietnam Automobile Manufacturers Association, in the 3 months of 50% preferential registration fees (from September to November), the total number of cars sold was 119,546 units, an increase of 48.2% compared to the previous 3 consecutive months.
Automotive industry makes breakthrough
The year 2024 has witnessed breakthroughs for automobile manufacturers in Vietnam. Typically, at the end of October 2024, the Hyundai Palisade SUV model was exported by the Hyundai Thanh Cong joint venture to Thailand - the largest export market in the region. This activity is part of the plan to export more than 4,000 Hyundai Thanh Cong vehicles to countries in the region in the period of 2024 - 2025. In particular, the localization rate (RVC) of Palisade is over 40%, meaning that this model is eligible for a 0% import tax incentive under the ATIGA Agreement in the ASEAN region.
Meanwhile, Vietnam's No. 1 electric car manufacturer VinFast has a localization rate of more than 60%, including the body, engine, roof, and shock absorbers. Compared to internal combustion engine cars assembled in Vietnam, this rate is quite high, because the highest level of gasoline and diesel cars is around 40% localization.
 |
| The localization rate of many automobile enterprises recorded positive results. Photo: VF |
To achieve 84% localization in the next two years, the Vietnamese automaker plans to use more domestic supplies for components including seats, wires, lights, rims, brake-steering systems, glass, mirrors, interior and exterior components, etc. In particular, VinFast plans to produce battery cells by 2026. Currently, VinFast only packages batteries at two factories in Hai Phong and Ha Tinh, and the battery cells are still imported from other manufacturers abroad.
In addition, many foreign car manufacturers are also aiming to invest in production in Vietnam. Typically, Tasco has officially signed a joint venture contract to assemble and distribute cars in Vietnam with Geely Group and signed a 3-party strategic cooperation agreement with the Management Board of Economic Zones and Industrial Parks of Thai Binh province. The Tasco and Geely joint venture has a designed production capacity of 75,000 cars/year for phase 1.
Also in 2024, the Thai Binh Provincial People's Committee granted the investment registration and business registration certificates to the Geleximco - Chery joint venture. This joint venture has planned to build an automobile manufacturing factory in Hung Phu Industrial Park, Tien Hai District, Thai Binh Province with a total estimated investment of up to 800 million USD, divided into 3 phases. The first phase is expected to be completed in the first quarter of 2026.
TC Motor and Skoda Auto have reached a strategic cooperation agreement and plan to build a Skoda car factory in Quang Ninh province. Czech car manufacturer Skoda chose Vietnam as the first country in Southeast Asia to set up a car assembly plant with production and assembly lines applying advanced, modern technologies, meeting European standards with a high level of automation.
The "Wave" of Chinese Cars
In 2024 alone, the domestic auto market welcomed 7 new car brands from China. The number of Chinese car brands is currently the largest in the market, surpassing Japan with 9 brands currently present in Vietnam.
Typically, BYD will enter the Vietnamese market from July 2024. In 2025, this Chinese car company is expected to launch many new car models to diversify its product portfolio.
 |
| Many Chinese car models have arrived in the Vietnamese market. Photo: Tran Dinh |
Despite being launched massively in the Vietnamese market, Chinese car models still make users not really trust because of the prejudice of "Chinese goods" and the reality in the Thai market. Specifically, when sales did not reach expectations, BYD car company in Thailand continuously reduced prices, causing controversy among customers because their vehicles had lost a lot of value in a short time.
According to the General Statistics Office, the motor vehicle production index in November 2024 is estimated to increase by 2.5% compared to October 2024 and increase by 36.2% compared to November 2023. In the first 11 months of 2024, the motor vehicle production index increased by 18.3% compared to the same period in 2023 (higher than the 14% growth rate of the first 10 months of 2024). In November 2024, Vietnam produced and assembled an estimated 47.3 thousand cars, up 3% compared to September 2024 and up 47.8% compared to October 2023. Thus, domestic automobile output has had its 8th month of growth since the beginning of 2024 and the 6th consecutive increase. This is also the month with the highest output since the beginning of 2024. The continuous growth momentum has helped the total accumulated domestic automobile production output in the first 10 months of 2024 reach 336.5 thousand cars, up 22.4% over the same period in 2023. This growth rate has improved compared to the 15.8% increase in the first 10 months of 2023. |
Source: https://congthuong.vn/nhin-lai-diem-noi-bat-nganh-cong-nghiep-o-to-nam-2024-367155.html
Comment (0)