The report from the General Statistics Office states that in February, a total of 21,900 new cars, including domestically produced and imported products, were added, a decrease of 23.3% compared to January 2023 and a decrease of 38.8% compared to the same period last year.
The number of new cars supplied to the domestic market has decreased significantly.
The estimated number of domestically assembled cars reached 15,900 units, corresponding to a decrease of 26.4% and 25.3% compared to January 2023 and the same period last year, respectively. Notably, this is the lowest production volume in recent years. In the first two months of the year, the number of cars manufactured in Vietnam was 37,500 units, a decrease of 9.8% compared to the same period in 2023.
In addition, the volume of imported cars in February was only 6,000 units, equivalent to a import value of 117 million USD, a decrease of 13.7% in quantity and 19.3% in value compared to the previous month. Particularly, the volume mentioned above decreased by 51.3% and 54.9% in quantity and value compared to the same period last year.
Over the first two months of the year, the accumulated volume of imported cars reached 12,955 units with a value of 262 million USD, a decrease of 51.6% in quantity and 54.3% in value compared to the same period in 2023.
According to market experts, the reason for the decrease in car production in the past month is the overlap with the Lunar New Year holiday in 2024, many businesses and factories allowed workers to take time off. However, the high rate of decline in the number of new cars supplemented in the market signals that businesses will continue to face difficulties in stimulating consumption.
In addition, the government’s policy of supporting a 50% reduction in vehicle registration fees from the beginning of 2024 may affect the sales volume of domestic car manufacturers. In fact, the Vietnam Automobile Manufacturers Association (VAMA) reported that vehicle sales in the Vietnamese market in January 2024 significantly decreased by up to 50% compared to December 2023.
Therefore, car companies are currently focusing on “clearance” of remaining inventory from 2022, with a German automaker with a factory in Vietnam reducing car prices by nearly 700 million VND.
In this context, this dealer announces a significant reduction in prices for many sedan models and multi-purpose vehicles, ranging from 20-50 million VND. Despite the large discounts, the fact that people are not really enthusiastic at this time makes the market still quite dull.
