The year 2023 proved challenging for members of the Vietnam Automobile Manufacturers’ Association (VAMA), as they witnessed a substantial 25% year-on-year drop in sales.
Sales Figures and Overview
In 2023, automakers affiliated with VAMA sold slightly over 300,000 units, marking a sharp decline of 25% compared to the previous year. A detailed breakdown reveals passenger car sales recording a 27% year-on-year decrease to just over 230,700 units. Commercial vehicle sales contracted by 16%, reaching almost 70,000 units, while special-purpose vehicles saw a staggering 56% plummet to just over 2,200 units.
CKD and CBU Vehicles – Declines Across the Board
Sales of completely knocked down (CKD) vehicles experienced a 20% drop, with just under 181,400 units sold in the past year. Simultaneously, completely built-up (CBU) car sales recorded an on-year decline of 32%, totalling 120,609 units.
December Rebound – A Glimpse of Hope
December brought hope as total auto sales rebounded by 39% from November, reaching nearly 38,800 units. Passenger car sales comprised around 30,300 units, marking a 20.5% increase, while commercial vehicle sales jumped by 9%, totalling 6,400 units. Special-purpose vehicle sales also saw an increase, amounting to 200 units.
In the same month, CKD vehicle sales spiked by 33%, reaching over 24,000 units, and CBU vehicle sales surged by 49% to almost 15,000 units.
Thanh Cong Group’s Noteworthy Performance
Thanh Cong Group (TC Group), a non-VAMA member specialising in assembling and distributing the Hyundai brand, showcased an impressive performance in December. With sales exceeding 10,800 units, TC Group recorded a notable increase of 36.4% compared to November and 14% against the same period in the previous year. However, in 2023, TC Group’s total Hyundai car sales stood at 67,450 units, reflecting a decline of more than 17% compared to 2022.
Factors Influencing December Rebound
The December rebound in auto sales was attributed to the year-end shopping season and a significant policy change – a 50% reduction in registration fees for domestically assembled cars. This incentive likely played a crucial role in encouraging consumer spending and stimulating the market during the concluding months of 2023.
