Vietnam’s Auto Sales Surged 181% during January-April 2008

Jul 03, 2008

From January to April 2008, sixteen Vietnamese automobile firms sold 47,366 units, an increase of around 181% over the same period in 2007.

VAMA (Vietnam Automobile Manufacturers Association) announced on May 20, 2008 that from January to April 2008, sixteen Vietnamese automobile companies sold around 47,366 vehicles, a phenomenal increase of 181% as compared to the sales recorded in the first four months in 2007 (January-April 2007), as reported by redorbit.

VAMA said that in April 2008, the Vietnamese automobile firms sold 13,271 vehicles (an annual increase of about 183%), the highest number of vehicles ever sold in a month in the country. Also, the sales of the commercial cars (29,745 units) and passenger cars (7,791 units) surged by 313% and 105% respectively during the same month.

VAMA said that in April 2008, the Vietnamese automobile firms sold 13,271 vehicles (an annual increase of about 183%), the highest number of vehicles ever sold in a month in the country. Also, the sales of the commercial cars (29,745 units) and passenger cars (7,791 units) surged by 313% and 105% respectively during the same month.

The improving living standard, changing lifestyle and increasing expenditure on auto-related parts are also leading to a rapid growth in the automobile industry of Vietnam. Moreover, rise in the personal disposable income and decline in prices of cars are too encouraging sales of cars in the country.

Furthermore, the employment conditions in Vietnam provides ample growth opportunities to the vehicle industry as a large part of the country’s population is dependent on agriculture for their livelihood, and thus requires commercial vehicles for transportation and small cars for traveling. This factor also helped in driving the growth of automobile industry during January-April 2008.

Also, the Vietnamese government is taking various initiatives to modernize the economy, and therefore, is launching infrastructure projects, such as transportation improvement. These improvement projects are leading to rise in the demand for commercial vehicles.

However, a strong growth is registered by the Vietnamese automobile sector in one-third period this year but according to auto industry experts, a slowdown in economy and rising prices of fuel could badly affect the auto industry in near future.

According to a Research Analyst at RNCOS, “The growing Vietnamese economy is resulting in rapid growth in the auto sector of the country, but rising fuel prices act as the biggest threat for the industry. Thus, to maintain strong and continuous growth in the automobile sector, players should develop eco-friendly vehicles, which consume green and clean fuel.”