The latest report from the Vietnam Automobile Manufacturers’ Association (VAMA) reveals that the total market sales in April reached 24,350 units, an 11% decrease from March 2024 but a 9% increase from April 2023.
Out of the 24,350 vehicles sold in April, 17,258 were passenger cars, 6,815 were commercial vehicles, and 277 were specialized vehicles. Domestic assembly sales reached 11,983 units, a 17% decrease from the previous month, while completely built-up (CBU) imports stood at 12,367 units, a 3% dip from March.
Cumulative sales for the entire market up to the end of March 2024 witnessed an 11% decline compared to 2023, with passenger cars dropping by 14%, commercial vehicles by 3%, and specialized vehicles by 28%.
Despite offering various incentives and discounts, car manufacturers have seen lackluster sales. (Illustrative image)
It is estimated that there are currently over 70,000 cars in inventory, mostly from the 2023 production year. As a result, businesses are now focusing on clearing this stock.
According to the General Statistics Office, in the first four months of 2024, the number of completely built-up (CBU) car imports was estimated at 44,772 units, valued at 919 million USD. Compared to the same period in 2023, this figure represents a decrease of 17.6% in volume and 24.2% in value.
In April 2024, a total of 38,200 new cars, including both domestically assembled and imported vehicles, were added to the Vietnamese market. This number is 6% lower than in March 2024 but 2% higher than in April 2023.
Among these, the output of domestically assembled cars is estimated at 25,700 units, up 3.6% from March 2024 (24,800 units) and 5.2% from April 2023. Cumulative output in the first four months of 2024 is estimated at 88,300 units, a 6.6% decrease from the same period in 2023.
Additionally, according to the General Statistics Office, the number of completely built-up (CBU) car imports in April 2024 was estimated at 12,500 units, valued at 244 million USD. Compared to the figures for March 2024, which were 15,860 units and 330 million USD in import turnover, car imports in April 2024 decreased by 21.2% in volume and 26.1% in value.
Compared to the same period in 2023, the volume of car imports in April 2024 increased by 1.6%, but the value decreased by 15.1%.
This indicates that car importers’ recent trend has been to prioritize bringing in cheaper models, with an average value per unit of only 19,500 USD (approximately 495 million VND).
Industry experts believe that the car market remains sluggish, prompting importers to exercise caution and refrain from massive imports. Currently, many car manufacturers are postponing the launch of new models until the end of the second quarter of 2024, offering promotions and discounts on various models.
Car manufacturers continue to offer discounts
Following a series of incentives such as a 50-100% reduction in registration fees (based on a 10% registration fee framework), cash discounts, or free first-year insurance for customers purchasing cars from May 6 to May 31, 2024, Honda Vietnam and other car manufacturers have announced significant discounts for 2023 models of popular vehicles like the CR-V, City, HR-V, Accord, and Civic, with price cuts ranging from 50 to 250 million VND.
One of the most notable price reductions in early May was offered by Ford for its Ford Explorer model, with a discount of up to 440 million VND compared to the previous month, bringing the actual selling price down to 1.999 billion VND.
The Hyundai Creta also joined the price reduction campaign, offering discounts of 40-41 million VND and bringing the starting price of this model down to 599-699 million VND. This is the first time the Creta has had a price reduction since its launch.
In the last days of May, consumers not only benefit from manufacturer incentives but also enjoy additional discounts and promotions offered by dealerships and distributors.
For instance, a sales consultant in Central Vietnam is offering a significant discount of 125 million VND on the Hyundai Elantra 2.0 AT premium version. Meanwhile, some dealerships in the North are providing a 74 million VND discount along with 15 million VND worth of accessories. A dealership in the South is selling the Hyundai Elantra 2.0 AT in white with a 65 million VND discount, bringing the price down to 604 million VND, just slightly higher than the listed price of the standard version at 599 million VND.
Toyota is also joining the end-of-May sales promotion with discounts of 30-50 million VND on the Toyota Raize, making it more competitive with the KIA Sonet, which has seen low sales recently.
Toyota Raize is one of the car models with significant discounts at the end of May. (Illustrative image)
The Toyota Raize was once a highly sought-after model in Vietnam in 2022, often sold at a premium. However, with the current market challenges, dealerships are now offering incentives to boost its competitiveness against rivals like the KIA Sonet and Hyundai Venue.
The Volkswagen Teramont, a 2023 model, has also seen a further price reduction of 30 million VND, bringing the total discount to 430 million VND from the listed price. With this significant discount, the car is now priced at 2.069 billion VND.
The Teramont is equipped with a 2.0L turbocharged gasoline engine that delivers a maximum output of 220 horsepower and a maximum torque of 350 Nm, paired with a 7-speed automatic transmission and all-wheel drive.
