Over the past year, 103,500 automobiles were sold in Vietnam, perhaps signaling the dawn of the car age in a country where motorbikes have long reined king.
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The latest report from the Vietnam Automobile Manufacturer' Association found that car sales in Vietnam have increased 58% compared to last year, according to DTI News.
During this period, sales increased across the board from small cars (45% increase) and commercial vehicle (75% increase) to special-purpose vehicles (136% increase).
The trend appears to be continuing as June saw a 9.2% jump in passenger car sales compared to May.
Toyota’s all-new Vios was a particularly hot commodity with 1,106 sales in June, 42% higher than the same time period last year.
With rising incomes, Vietnamese have more disposable cash to buy big-ticket items like cars. Last year, Vietnam imported over 66,025 of them, nearly double that of 2013.
Expect the trend to continue, especially as more low cost cars like Tata’s Nano (US$2,500 – US$5,000) become available and taxes on vehicles built in ASEAN nations drop to 50% under the ASEAN Trade in Goods Agreement (ATIGA) later this year. This figure will fall to 40% in 2016, 30% in 2017 and hit zero by 2018.
[Photo via mmbiztoday]
