DUBLIN--(BUSINESS WIRE)--Research and Markets(http://www.researchandmarkets.com/research/e441be/vietnam_autos_repo) has announced the addition of the "Vietnam Autos Report Q4 2011" report to their offering.
New locally manufactured vehicle sales in Vietnam rose 11% year on year (y-o-y) in the first five months of 2011, to reach 44,966 units, according to the Vietnam Automobile Manufacturers Association (VAMA). Over the same period, the number of completely built units (CBUs) imported into the country rose 45.7% y-o-y, to reach 26,900 CBUs, according to a report on the Vietnews website for a total of 71,866 new car sales so far in 2011. If this trend is replicated over the remainder of the year, BMI's current forecast of 118,824 units to be sold this year will necessitate some upward revisions.
Looking at the breakdown between locally manufactured and imported cars, there is a developing downward trend in new locally manufactured vehicle sales, which were down by 19% month-on-month (m-o-m) in May, at just 7,661 units. This decline was particularly pronounced in the sale of locally manufactured commercial vehicles and sport utility vehicles. It would appear that Vietnamese consumers are increasingly able to afford imported cars. Considering also imported parts, the total value of automotive imports into Vietnam for the Jan-May 2011 period stands at US$1.34bn, up 23.7% y-o-y.
Looking forward, BMI is happy to maintain its 2011 new vehicle sales forecast for now, with the country still dogged by high inflation (CPI at 21% as of June 2011) and a weak currency. Moreover, the car industry remains heavily taxed, with taxes reportedly accounting for some 60% of the value of a new car in Vietnam at present. However, if new car sales continue to show strength into H211, even despite these adverse macroeconomic and taxation factors, then some measure of upward revision may prove necessary.
Companies Mentioned:
- GM Daewoo (Vidamco)
- Mercedes-Benz Vietnam
- Truong Hai Auto Joint Stock Co (Thaco)
- Toyota Vietnam
For more information visit http://www.researchandmarkets.com/research/e441be/vietnam_autos_repo.