Car Market Sales in January 2024 only Half of late 2023

DNHN - In terms of vehicle types, passenger car sales fell the most, reaching 14,745 vehicles, a 54% decrease compared to the previous month. Specialised vehicles and commercial vehicles also recorded declines of 46% and 31.5% respectively.

The Vietnam Automobile Manufacturers Association (VAMA) has just announced sales figures for the first month of 2024, and the report shows that the car market has experienced a sharp decline in sales.

In January 2024, total market sales reached 19,243 vehicles, a 50% decrease compared to December 2023. Domestically assembled vehicle sales fell by 59% compared to the previous month, reaching 9,783 vehicles, while imported vehicle sales fell by 36%, reaching 9,460 vehicles. The sales balance between domestically assembled and imported vehicles has almost equalised, immediately after the policy of a 50% reduction in registration fees for domestically produced vehicles expired.

In terms of vehicle types, passenger automobile sales fell the most, reaching 14,745 vehicles, a 54% decrease compared to the previous month. Specialised vehicles and commercial vehicles also recorded declines of 46% and 31.5% respectively.

The only bright spot in the report is that January 2024 automobile sales increased by 11% compared to the same period last year. However, it should be noted that January 2023 coincided with the Tet holiday, while in 2024, this holiday fell in February.

According to a report from TC Motor, the only company that distributes all Hyundai-branded commercial and passenger vehicles in Vietnam, sales in the first month of 2024 fell by 67% compared to the previous month, reaching only 3,569 vehicles.

TC Motor said that January 2024 was the time leading up to Tet, which led to a limited shopping mentality, resulting in a decline in sales for Hyundai and the entire market. However, once the Tet holiday is over and the market stabilises again, they expect higher sales growth in the following months.

The sharp decline in automobile sales in the first month of 2024 is explained by many factors, including pre-Tet consumer sentiment and changes in policy, such as the expiry of the 50% registration fee incentive policy. Car brands have also seen fluctuations in market share, with Toyota dropping from second to fourth place in market share.

P.V