Vama

Vietnam car imports surge 70% in March

April 5, 2021 by hanoitimes.vn

The number of imported cars in March are nearly the combined figure in the first two months of the year.

In March, Vietnam spent US$347 million on importing 17,000 cars, a surge of 69.3% month-on-month in volume and 66% in value, according to the General Department of Vietnam Customs (GDVC).

Car imports at Hai Phong port. Photo: Kinhtedothi

Such figures are nearly the combined imported number of cars in the first two months of the year which is 18,382 units and US$421 million.

This resulted in 35,367 cars imported to Vietnam in the first quarter of the year worth US$770 million, up 31.1% year-on year in volume and 35% in value.

According to the GDVC, 90% of imported cars in Vietnam in the January – March period were from Thailand, Indonesia and China, while the rest were from Japan, the US, Europe and South Korea.

A sharp increase in the number of cars imported to Vietnam came as a surprise as the local car market continues to struggle with the Covid-19 impacts.

A report from the Vietnam Automobile Manufacturers’ Association (VAMA) revealed the car sales in February declined 22% against the previous month, marking the second consecutive month of market decline with a contraction of 45% month-on-month in January.

However, experts also suggested demand for cars would eventually bounce back, especially as production and business activities are returning to normal at a time when the country puts Covid-19 under control.

Imports of automobiles accelerate in March

April 5, 2021 by en.vietnamplus.vn

Vietnam recorded a surge in car importation in March (Photo: VNA)

Hanoi (VNS/VNA) – The import of automobiles increased dramatically in March, according to figures released by the General Department of Customs (GDC).

But although more and more cars are coming into Vietnam, purchasing of vehicles tends to slow at the beginning of the year.

Statistics shows that last month more than 347 million USD worth of CBU (Completely Built-up Units) were brought into the country.

This was an increase of 69.3 percent in volume and 66 percent in value compared to the previous month and almost matching the figures for the first two months combined.

In the first quarter of 2021, 35,367 cars worth 770 million USD were imported, up 31.1 percent in volume and 35 percent in value against the same period last year.

Industry insiders attributed the surge to the increasing demand of transport businesses and private use after the economy stalled due to COVID-19.

While car dealers remained cautious about the prospect of car market, many expected more positive sale figures for the second quarter given the launch of many new models.

Automobile sales has continuously declined in the first two months of the year.

The Vietnam Automobile Manufacturers Association (VAMA) reported that car sales in February 2020 stood at only 13,585 units, down 48.6 percent compared to the first month of the year.

Car purchasing power in the first month of 2021 also suffered a decline of 45 percent compared to the previous month./.

VNA

Vietnam to raise tax on cars with high emissions

April 13, 2021 by vietnamnet.vn

Experts have suggested imposing high taxes on vehicles and encouraging the use of electric cars.

Vietnam to raise tax on cars with high emissions

At a seminar on urban transport’s impact on the environment held several days ago, Yann Maublanc from Espelia said that, after electric car usage kicked off, nitrogen oxide emissions in the populous Île-de-France decreased by 37 percent in 2005-2015, while emissions from transport decreased by 32 percent. The volume of fine dust, which caused 50,000 deaths a year, also fell by 36 percent.

The decreases were not attributed to the reduction in number of vehicles, but to the increase in the number of electric vehicles.

Vietnam is entering a motorization period. Experts say that if Vietnam cannot reduce the number of vehicles in circulation, it needs to restrict the use of old-technology vehicles and encourage vehicles using clean green technologies.

But the problem is that the vehicles using new technologies are pricey.

HEV (hybrid electric vehicles) are believed to be a solution to environmental problems in Vietnam. The School of Transportation Engineering under the Hanoi University of Science and Technology, after an experiment, concluded that HEV has outstanding advantages over traditional internal combustion vehicles in Vietnamese conditions, especially in terms of fuel savings.

The researchers used two Toyota Corola Cross 1.8L for the experiment, one with hybrid technology and the other with internal combustion engine technology.

On inner city roads, the hybrid only consumed 5.6 liters of petrol per 100 kilometers in rush hours, 4.8 liters in normal hours and 4.6 liters on highways.

The figures were 11.2 liters, 10.3 liters and 5.7 liters for an international combustion engine car.

Experts pointed out that in foreign countries, hybrids have become more popular than ever as they are green, clean and friendly to the environment. At first, people drove small cars, but there are now medium and large hybrids as well.

In Vietnam, hybrids do not enjoy any preferences compared with traditional internal combustion engine cars. Both types of cars bear the same import tariff, luxury tax and VAT.

Using high technologies, hybrids have high prices. In Vietnam, a hybrid is at least VND100 million more expensive that an internal combustion engine car. The modest income of Vietnamese explains why they are indifferent to hybrids.

Enterprises have been calling for reasonable policies to encourage people to use green cars. With preferential taxes and fees, hybrids would become cheaper and more people would use them. But policies have not been created.

That is why the number remains small. VAMA reported that 289 hybrids were imported in 2010, then the figure rose to 347 in 2011, but once again dropped to 131 in 2015. The imports continued to drop to to 84 in 2016 and 20 in 2017.

In late 2020, the sales of hybrids increased slightly with the hybrid version of Toyota Corolla Cross imported from Thailand. However, it is estimated that there are only 1,000 hybrids of different kinds, or just 0.3 percent of total cars.

Environmental quality

Some enterprises have tried to develop PHEV (plug in hybrid electric vehicle), but their efforts did not bring the desired effects.

It is impossible to shift to use EV immediately. Enterprises still need more time, more preferences and high financial capability to develop infrastructure and technology.

Mitsubishi Motors Vietnam introduced the Outlander PHEV in 2017, but there has been no information about sales.

The model uses two electric engines and a petrol one. Once fully charged, the car can run 60 kilometers without petrol. If it needs to go further, the petrol engine will be activated to charge the battery with electricity and support acceleration.

The Outlander PHEV consumes 1.9 liters per 100 kilometers, with CO2 volume of 44g/km, lower than the 173g/km of normal cars.

The product line has a preferential luxury tax, 70 percent of petrol engine cars, so the selling price is still high.

In order to develop these products, it is necessary to develop a network of electricity charging stations, like the one for EV (electric vehicle).

In Vietnam, the EV market has seen considerable progress compared with 2-3 years ago. VinFast has its first orders for its first EV model, and plans to delivery products in November. Some companies have imported EVs for domestic sale and their prices are nearly the same as petrol cars of the same segments.

In some cities, electricity charging stations have been built which allow drivers to charge quickly. A 25-minute charge is equal to 200 kilometers of travel.

But analysts still believe that it is impossible to shift to use EV immediately. Enterprises still need more time, more preferences and high financial capability to develop infrastructure and technology.

Frost and Sullivan believe that PHEV and EV will account for 30.4 percent of total cars in the world by 2030.

Experts believe that Vietnam needs to impose high taxes on vehicles that produce high emissions that pollute the environment. At the same time, it is necessary to encourage or even award clients using electrified vehicles. A good transport system and reduced pollution will attract investors and improve people’s lives.

Tran Thuy

Automobile sales up 36 percent in Q1

April 13, 2021 by en.vietnamplus.vn

VAMA members sold 70,952 vehicles in the first three months of 2021 (Photo: VNA)

Hanoi (VNA) – The Vietnam Automobile Manufacturers’ Association (VAMA) announced on April 13 that its members sold a total of 70,952 vehicles in the first quarter of 2021, a year-on-year surge of 36 percent.

The figure comprised 51,126 passenger cars, up 34 percent, 18,735 commercial vehicles, up 43 percent, and 1,091 special-use vehicles, up 17 percent.

March auto sales by VAMA members grew 127 percent against February to 30,935.

Of these, 21,089 were passenger cars, 9,227 commercial vehicles, and 619 special-use vehicles.

Sales of domestically-assembled vehicles rose 99 percent month-on-month to 70,952, while those of completely-built-up (CBU) vehicles increased 177 percent against January to 13,795.

These figures do not fully reflect the situation in Vietnam’s automobile market, however, as they do not include the sales of brands such as Audi, Jaguar Land Rover, Mercedes-Benz, Subaru, Volkswagen, and Volvo.

In March, TC Motor sold 6,807 vehicles while VinFast sold 2,330, bringing the figure for the two brands in Q1 to 40,072.

TC Motor led all brands in March sales, followed by Toyota with 6,527, Kia with 3,745, Ford with 3,228, Mazda with 2,606, and Honda with 2,486.

The Ford Ranger pickup truck was the bestseller in the month, with sales of 2,171, while the Hyundai Accent followed with 2,094.

Growth in auto sales during March was attributed to the launch of new and updated models and the introduction of promotions.

Vietnam has also brought COVID-19 largely under control and a vaccination programme is now underway, while domestic tourism has reopened./.

VNA

Domestic car sales record 127% surge in March

April 13, 2021 by vov.vn

In terms of vehicle origins, the past month has seen sales of domestically-assembled vehicles reach 17,140 units, a climb of 99%, whilst CBU imported cars stood at 13,795 units, an increase of 177% compared to one month earlier.

The opening three months of the year witnessed VAMA members selling a total of 70,952 cars, an annual rise of 36%, with passenger cars climbing by 34%. In addition, the sales of commercial and special purpose cars also witnessed respective increases of 43% and 17% compared to the same period from last year.

According to the sales announcement given by VAMA, TC Motor, and VinFast, the local auto industry saw the consumption of 40,072 vehicles of all types in March.

Most notably, Hyundai remained as the leader in terms of car sales among auto brands within the domestic market, with a total of 6,807 units sold, trailed by Toyota, Kia, Ford, Mazda, and Honda.

Along with VAMA members, brands such as TC Motor, Audi, Jaguar, Mercedes-Benz Land Rover, Subaru, Volkswagen, and Volvo also have a presence within the country, although they have chosen not to disclose their business results.

According to experts, following the overall purchasing power of the auto market dropping by 22% in February due to the Lunar New Year holiday, the industry as since prospered with a rise of 127% compared to the previous year, thereby bringing the overall increase recorded in the first quarter to 36% on-year.

This level of growth can mainly be put down to numerous car manufacturers launching new models or upgraded versions of vehicles, with numerous promotions and discounts on offer, in addition to the novel coronavirus (COVID-19) pandemic situation being brought under control within the country.

Furthermore, the vaccination process is also underway in many localities, coupled with the reopening of the domestic tourism market as a means of contributing to boosting domestic purchasing power.

Vietnam car imports surge over 20% in February

March 23, 2021 by hanoitimes.vn

Ninety percent of imported cars in Vietnam in February came from Thailand, Indonesia and China.

In February, Vietnam imported 10,039 cars worth US$209 million, up 20.3% month-on-month in volume but down 1.88% in value, according to the General Department of Vietnam Customs (GDVC).

Car production at VinFast. Photo: Pham Hung

According to the GDVC, 90% of imported cars in Vietnam in February came from Thailand (5,200 units), Indonesia (3,300) and China (589).

Overall, nearly 18,400 cars were imported to Vietnam during the two-month period, up 23.7% year-on-year, of which, passenger cars made up a lion’s share of over 12,000, or 66.3%.

Customs statistics also showed that car accessories and parts worth US$345 million were imported into Vietnam in February, up 10.2% month-on-month. Suppliers of those products were mainly from South Korea with US$93 million, followed by Thailand (US$63 million), China (US$59 million) and India (US$22.6 million).

Overall, accessories and parts imported to Vietnam during the January-February period reached US$730 million, up 11% year-on-year.

Data from the Vietnam Automobile Manufacturers’ Association (VAMA) revealed the number of cars sold in Vietnam declined for two consecutive months in February with a contraction of 22% against the previous month to nearly 13,600 units.

In the first two months of 2021, car sales in Vietnam, however, rose by 21% year-on-year to more than 40,000 units across all segments.

As many as 23,120 locally assembled cars were sold in the period, up 11% against the previous month, and the figure of imported cars rose by 37% to 16,900 units.