Vietnam Doubles Vehicle Sales

By Brendan Moore

12.03.2007

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.

Toyota Innova

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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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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2 Comments

  1. I saw a statistic somewhere that said 25% of American households had five or more vehicles.

  2. I wonder how many scooters and motorcycles there are in Vietnam? Because it seems like about 100 million are on the streets at any one time.

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