Challenges Persist for the Auto Market in the First Half of the Year
Vietnam’s auto industry faced significant challenges in the first six months as sales declined due to economic difficulties. Auto sales experienced a sharp 31% year-on-year drop, with only 176,976 units sold.
To stimulate demand, car manufacturers and brands resorted to offering substantial discounts, up to VND300 million per unit, for cars manufactured in the previous year. Popular models such as the Ford Explorer, Volkswagen Teramont, and Subaru Forester were among those discounted. Even high-end brands like Volvo, Audi, and Mercedes joined in offering promotions.
In an effort to boost demand, the government implemented a policy on July 1 to reduce registration fees by half for locally manufactured or assembled cars. However, industry insiders remain skeptical about the effectiveness of this decision.
While some market recovery is anticipated by the end of the year, experts predict that sales levels will not reach the same heights as the previous year. The road to recovery for the auto market in Vietnam may still be challenging.