The sharply decreasing market in August

Auto market in August 2010 reduced remarkably in sales over the same period last year. According to the latest report made by the Vietnam Automobile Manufacturers’ Association (VAMA), all of 17 joint-ventures could sell only 8,671 units last month, decreasing by up to 18 percent.

In August 2010, sales in all auto segments decreased. MPVs, 4-seat cars and commercial cars decreased respectively by 22%, 23% and 12%. That sharp drop made the incremental sales of the first 8 months in 2010 smaller than 1% in comparison with that in 2009.

Most giants in the field of passenger car production in Vietnam suffered the same scene market going down, although many constantly offered attractive promotion programs such as registration fee support, discounts, etc.... Vinastar only sold 157 units (decreasing by 63%), GM Daewoo sold 726 units (decreasing by 48%) and Toyota, despite holding the leading position with 2,441 units sold, also dropped by 17% in sales over the same period.

Truong Hai was one of the names that continued to maintain its status, with increasing sales by 11% over the same period last year, reaching 2,054 cars sold. Isuzu had the sales of only pick-up cars slightly decreasing, marking a positive month in business thanks to the growth of truck lines.

Commenting on this general decline, some analysts thought that due to the psychology of not spending in Ngau month (the seventh month of the lunar year), many customers postponed their purchase plans. Moreover, interest rates for credit loans in Vietnam were high, while the adjustment-to-decrease goal was still under consideration, many people still listened out. Mr. Huynh Quang Son – Chief Editor of Autonet Magazine also asserted that "The reduction in car consumption in the past August was temporary only. In September, consumers would no longer abstain from Ngau month plus increasing shopping needs in end-year period, the auto market would grow again"

The leading position in the table of Top ten best-selling cars in August remains Toyota’s. Vios, the small-sized sedan, ranked No. 1 with 575 units, pushing Innova – the once "leader" for a long time to No. 2 with 472 units. Fortuner ranked third with total 469 units. See details in the table below.

In the chart of cumulative sales from January to August 2010 of firms, Toyota took the lead with 18,982 units. Truong Hai with 15,417 units ranked the 2nd and the 3rd position belonged to Vinamotor with 8,043 units (not including bus chassis).

A notable information for Vietnam’s car market was from August 2010, the SYM Vietnam company became a new VAMA member. Currently, the company’s product lines included light trucks and vans.

Top ten best-selling cars in August

 Ranking of manufacture sales in August 2010 over the same period in 2009

(*) Exclusive of bus chassis

Ranking of manufacture cumulative sales from Jan to Aug 2010 over the same period in 2009

(*) Exclusive of bus chassis