The Vietnam Automobile Manufacturers’ Association (VAMA) has announced that its members sold 25,159 vehicles in June, down 42 per cent from May ending three consecutive months of gains.

The luxury car market in H1 saw sales increasing significantly. But many clients were told to wait six months to a year for delivery.

The Vietnam Automobile Manufacturers’ Association (VAMA) said on July 13 that its members sold 25,159 vehicles in June, down 42% from the previous month.

Some car models are very popular and in short supply. Buyers have to wait six months to one year to get deliveries though they have paid a deposit and bought accessories.

The car part shortage crisis in the world has affected the Vietnamese market as car buyers have been told to wait for deliveries.

Nghe An, Ha Tinh and Thanh Hoa were among the 10 provinces with the highest numbers of cars bought in 2021. They are among the 10 provinces with the highest number of poor households.

Hanoi continued to lead cities and provinces in the number of cars bought in 2021, followed by HCM City and Hai Phong. Nghe An province was among the top four car buyers.

2021 was a difficult year for car manufacturers in Vietnam. The total sales of the market reached over 410,000 cars.

Vietnam’s rising income per capita would soon move cars from a luxury product with a passenger vehicle density of 34 per 1,000 to a more ordinary one with a density level comparable to countries in the region.

Car sales in Vietnam in 2020 dropped 8% year-on-year to 283,983 units across all segments despite a strong increase seen in the fourth quarter, the latest data released by the Vietnam Automobile Manufacturers Association (VAMA) showed.

Automobile companies are accelerating fast to reach their annual targets after facing difficulties in the first half of the year.

As Vietnam has set new policies to encourage domestic production, car manufacturers have resumed the assembling of some bestsellers in Vietnam to enjoy incentives.

After the Government’s move to lower car registration fees by half took effect more than a week ago, the domestic car market has picked up.

After the Government’s move to lower car registration fees by half took effect more than a week ago, the domestic car market has picked up.

Instead of reducing taxes and fees, the State needs to set reasonable policies to develop automobile supporting industries, experts say.

While automobile manufacturers in the world have laid off workers in large quantities to reduce operation costs during the Covid-19 crisis, automobile joint ventures in Vietnam have retained their workforce.

Car prices in Vietnam are predicted to continue falling with many discount programmes due to large inventory and slow sales.

Car sales have dropped to a 5-year low and may continue to slide if the pandemic persists.

Despite sharp price cuts of hundreds of million of dong, cars still cannot find buyers. The automobile market is predicted to see a minus 15 percent growth rate this year.