The market is normally busier at the final months of a year due to increasing demand for personal cars. However, despite a strong growth rate in October with over 10,280 units sold, auto sales of manufacturers in November fell by 1%.
Toyota Vietnam, the leading automaker on the domestic market, sold 2,767 units in November, or a drop of 434 units from the previous month. Meanwhile, the sales volumes at Ford Vietnam and GM were 780 and 450 units, down 110 and nearly 10 units respectively.
Honda Vietnam and Vinastar sold more cars in November with 709 and 313 units respectively compared to October but their sales increased slightly.
According to the latest report of the Vietnam Automobile Manufacturers’ Association (VAMA), 10,148 units were sold last month, which was around 1% lower than that of October but still increased by 6% from last year’s same month.
In November, the auto market did not follow the common rule of previous years, when the demand often rises towards the year’s end.
The falling sales can be attributed to consumers in HCMC awaiting a steep fall in the registration fee for small vehicles from the current 15% to 10%, effective from January 1, auto manufacturers explained.
At the ongoing meeting, the HCMC People’s Council agreed on the proposal to cut the registration fee on under-ten-seat vehicles to 10% instead of 15%. The new fee is lower than that of 12% in Hanoi.
Auto traders in HCMC forecast this month’s sales volume will drop as buyers will wait until next year to avoid the current high fee.
The Government’s policy of lowering the auto registration fee has partly stimulated the market.
According to VAMA, auto sales can hit 109,000 units this year due to changes in the fee and tax policies as well as economic recovery.