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Friday, June 14, 2024

Local auto sales see steepest drop in nearly seven years

By Hoang Bao

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HCMC – Members of the Vietnam Automobile Manufacturers’ Association (VAMA) sold 8,884 vehicles in August, falling 45% against the figure in July, the biggest decline in the local auto market since 2015.

A VAMA report also showed that the local auto market registered its fifth consecutive month of falling sales in August.

Specifically, sales of passenger cars contracted 40% month-on-month, commercial vehicles saw a drop of 55% and special-use vehicles declined 33%.

Since the latest outbreak in Vietnam on April 27, many plants of VAMA members had suspended operations several times. As for members that could resume or maintain operations, they faced another obstacle—high inventories of unsold vehicles caused by the suspended operations of auto dealers.

Over 200 auto dealers of the VAMA members have remained shut. Moreover, more than 200 car service workshops could not operate. The auto supply chain and distribution has been stalled and encountered substantial losses, with many companies recording a fall of over 60% in sales.

In addition to the VAMA members, other non-member brands such as Vinfast and TC Motor also saw a sharp decline in sales. TC Motor sold 2,182 cars last month, which is equivalent to 54% of the figure in July.

The sharp fall in car sales in August was mostly attributed to the extended social distancing period in many provinces and cities nationwide amid the complicated developments of Covid, said a TC Motor representative.

Regarding the automaker VinFast, it said that as this August overlapped the seventh month of the lunar year, or also known as the Ghost Month, interest in buying weaned and car sales fell. Many localities nationwide have also been following the stringent stay-at-home order to fight Covid, leaving a huge impact on auto sales.

VinFast auto sales stood at 2,310 cars in August compared to 3,782 vehicles in July. The global shortfall of car accessories and semiconductor chips remained unsolved, resulting in some models such as Lux SA2.0 being in short supply to be handed over to customers, according to a VinFast announcement.

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