The Vietnamese new car market recorded a total of 21,900 new registrations, including both domestically produced and imported vehicles, according to the General Statistics Office of Vietnam.
This represents a stark decrease of 23.3 percent compared to the previous month and a significant 38.8% decline compared to February 2023.
Locally-Produced Cars
Domestically produced and assembled cars are estimated at 15,900 units, marking a substantial 26.4% drop from January 2024. This figure also represents a 25.3% decrease compared to the same period last year, highlighting a concerning trend of dwindling production levels.
In total, the first two months of 2024 saw a total output of domestically produced and assembled cars amounting to 37,500 units, down 9.8% compared to the corresponding period in 2023.
Imported Cars
In February 2024, approximately 6,000 units were imported, totalling US$117 million. This reflects a 13.7% decrease in volume and a 19.3% decrease in value compared to January 2024.
Over the two months, imports reached 12,955 units valued at US$262 million, signalling a significant 51.6% decrease in volume and a staggering 54.3% decrease in value compared to the same period in 2023.
Addressing Supply Surplus
In the first two months of 2024, more than 50,000 vehicles were brought into the market, but sales were only about 40,000 units. This resulted in an excess of around 70,000 vehicles by the end of February 2024, mostly older models from 2023.
To address this surplus and boost sales, businesses have launched big advertising campaigns and offered significant discounts across different parts of the market.
In the A-class SUV segment, prominent models like the Toyota Raize, Hyundai Venue, and Kia Sonnet have witnessed price reductions ranging from 20 million Vietnamese Dong (about 1,200 AUD) to 30 million Vietnamese Dong (about 1,800 AUD).
Meanwhile, in the B-class SUV category, Hyundai Thanh Cong has announced price cuts for the Creta model, and Mitsubishi Vietnam has followed suit with reductions on the Xforce model.
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