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Consumption of new cars in 2021 in Vietnam decreased slightly

Although the market was closed for many months because of the epidemic, the purchasing power of the car industry only decreased slightly by 3%.

By the end of December 2021, the cumulative sales of the Vietnam Automobile Manufacturers Association (VAMA) reached 277,203 vehicles of all kinds, a slight decrease of 2% compared to the same period last year. The number of TC Motor, which distributes Hyundai vehicles is 70,518 vehicles, down 13.3%.

VinFast achieved sales of 35,723 vehicles in 2021, an increase of 21.2% compared to last year. Thus, its sales volume in 2020 will reach about 29,523 vehicles, this is a number that VinFast did not announce at the end of 2020.

Total sales of VAMA, TC Motor, VinFast reached 383,444 vehicles in 2021, a slight decrease of 3% compared to 2020.

In the slight decrease of 3% in sales of VAMA, the passenger car segment decreased by 6%, reaching 203,766 vehicles. In general, car brands belonging to this association such as Toyota, Mitsubishi, Honda, Ford, Suzuki, and Mazda all decreased in sales, except for Kia and Peugeot, which increased by 16% and 53% respectively.

A German car company displays cars at a shopping mall, October 2021. Photo: Pham Trung

The Vietnamese auto market in 2021 is greatly affected by the Covid-19 pandemic. Three months in the third quarter, when the disease spread across the country, especially in the southern region, a series of car showrooms closed. Customs clearance and registration of new cars also stopped, causing car sales to plummet.

From October, when the epidemic was basically under control, economic activities resumed, new car sales began to prosper. Decree 103 reducing registration fees by 50% for assembled and manufactured cars (applied from December 1 to May 31, 2022) is considered a push to help new car sales increase sharply at the end of the year. In December alone, VAMA sales reached 43,526 vehicles, the highest level since the beginning of the year.

Representatives of automobile manufacturers in Vietnam share the same opinion that the 2022 auto market will grow again when the car supply is more stable and the Covid-19 epidemic has cooled down. Many new products will also be presented to Vietnamese customers before and after the Lunar New Year. Among these are names like Honda Civic, Ford Explorer, Toyota Altis, MG5.

Pham Trung


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