Vietnam Doubles Vehicle Sales
By Brendan Moore
Doubling sales in one year is pretty impressive usually, but in this case, we’re talking about a jump from 50,000 to 100,000 units sold. So, small numbers, but Vietnam is convinced that the country is on the way to their own large auto industry.
Vietnam has been trying to get their auto industry
going for years without much success, so any good news is welcome from their viewpoint.
The Ministry of Industry and Trade stated that approximately 80,000 automobiles will be assembled this year, and 25,000 imported into the country. Therefore, the total number of cars purchased in 2007 may reach 100,000, including 60,000 cars.
Bui Ngoc Huyen, Director of Xuan Kien Automobile Private Establishment (Vinaxuki), claims that the car market will see the growth rate of 100% this year over 2006, and the figures will be 20-30% in the next years.
Mr Huyen remarked that the sedan output by itself would reach 100,000 units a year by 2010. And if that happens, then the market scale of the in-country auto industry would enable enterprises to increase the localization content, which can help reduce selling prices.
The Vietnamese government is also planning to reduce taxes on all cars under 3 liters soon, which is expected to spur automobile sales considerably.
GM and Toyota have the biggest market shares and the highest production capacities in Vietnam. GM, through its Daewoo subsidiary, has newly-increased capacity of around 25,000 units annually, and Toyota has approximately 20,000 units of capacity. Toyota has sold about 12,000 units of their market-leading Innova model in 2007.
Vietnam currently has 1 car for every 80 people in the country. The rest of the world has a average ratio of 1 car for 8 people. The U.S. has an average ratio of approximately 4 cars for every 5 people, and that does not take into account the ones that are stored and/or not running.
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