Car market shows signs of improvement

Sales growth of nearly 50%

Earlier this month, information about the Government's decision to reduce 50% of registration fees for cars assembled and manufactured in Vietnam was received with some caution by car showroom managers because they were worried that companies would reduce stimulus policies.

However, contrary to this concern, car manufacturers have “followed the flow”, deciding to “add a sprint, creating a premise for a bright future for the last quarter of the year”. Accordingly, instead of car manufacturers cutting down on previous support policies, in September, those who wanted to buy a car enjoyed double benefits, both enjoying policies from the State and choosing stimulus policies from car manufacturers, some even adjusted their listed car prices down.

For example, Ford Vietnam, in conjunction with its nationwide dealer system, launched the “Double Day - Double Deals” program during the entire month of September. All customers who book a car online or directly at Ford dealers nationwide will be able to participate in a lucky draw with an attractive cashback opportunity of up to VND99 million.

Along with this incentive, Ford Vietnam supports up to 100% of registration fees from September 11, 2024 to September 30, 2024 for Territory, Ranger, Everest and Explorer models.

Or luxury car models worth billions of dong are also continuously announced with new selling prices with unprecedentedly attractive deep discounts. Specifically, the Volkswagen brand set a new record for price reductions in the market, with the Volkswagen Teramont model being reduced by 501 million VND; Luxury car models of other brands are also announced with price reductions, usually over 100 million VND/car depending on the model.

Other major car companies also announced price reductions or promotions of additional services, along with the 50% reduction in registration fees, creating a fairly large market boom in September.

Accordingly, the latest announcement of the Vietnam Automobile Manufacturers Association (VAMA) shows that the total market sales of member units in September 2024 reached 36,585 vehicles, recording an increase of 45% compared to the previous month and an increase of 44% compared to the same period last year. This is considered a record increase of the automobile market in 1 month.

Of which, the number of passenger cars sold reached 28,973, up 51% compared to the previous month. Commercial vehicles also recorded an impressive increase of 7,367 vehicles, equivalent to 25%, of which specialized vehicles reached 245 vehicles, up 48%.

Notably, sales of domestically assembled vehicles reached 19,500 vehicles, up 62% compared to the previous month. Some companies have seen rapid sales growth, such as Honda Vietnam, with the announcement from the company showing that Honda Vietnam's car sales in September 2024 reached 3,607 vehicles, up 210.9% compared to the previous month and up 41.2% compared to the same period last year; Toyota is not far behind with total sales reaching 7,143 vehicles, equivalent to an increase of 150% compared to sales in the previous month (including Lexus vehicles); Hybrid vehicle sales achieved results with 563 vehicles, up more than 60% compared to the previous month.

Expected 2024 sales to grow positively

Explaining the fact that domestically assembled car sales reached 19,500 vehicles, an increase of 62% compared to August, a VAMA representative said that September sales increased significantly thanks to the policy of supporting 50% of registration fees for domestically produced and assembled cars.

This shows the effectiveness of policies to encourage domestic car consumption. And this policy will continue for the next 2 months, to encourage consumers to choose domestically assembled cars. Therefore, it is possible to hope that car sales in the coming months will maintain growth.

Some industry experts also commented that the 45% growth in sales of the entire auto market in September 2024 showed that the Vietnamese auto market responded quite quickly and effectively to the Government's stimulus policy. Because with this policy, domestically assembled and manufactured auto manufacturers have benefited with a large increase.

Not to mention, customers who "aim" at imported cars also benefit because many importers have entered the promotional race to attract customers in need, as evidenced by the fact that some luxury car companies have announced record price reductions.

However, although the automobile market grew dramatically in September, in the first 9 months of 2024, the total sales of cars in the entire market of VAMA member units reached 225,583 vehicles, an increase of 7.5% over the same period in 2023. This is a low increase, but compared to the negative growth of the market in 2023, it shows a positive signal for sales in the whole year of 2024.

Some forecasts from the dealers of the companies show that the market is likely to continue to grow when the 50% reduction in registration fees policy is still in effect until the end of November 2024. In addition, some car models with extremely low sales in September (2-3 car models with sales of less than 10 units) may have their own strategies to boost demand, in order to best consume when the market is on the rise. Not to mention, they are also preparing to enter the final stage to report sales for 2024, so it is likely that the companies also have their own "tricks" to attract more customers.

Source: https://baophapluat.vn/thi-truong-o-to-co-dau-hieu-khoi-sac-post528340.html