Decline in the Supply of New Cars

Automobile production in Vietnam declined in the first month of the year. Photo: Viet Linh .

According to the latest report from the General Statistics Office, the number of domestically assembled cars in January is estimated to reach 23,300 units, a 16.6% decrease compared to the 27,900 units recorded in the last month of 2023. However, domestic car production in the first month of this year is still 14.6% higher than the number of domestically assembled cars recorded in January 2023.

Prior to that, data from the General Department of Customs also showed that in the first half of January, only 1,053 complete imported cars completed customs procedures in Vietnam.

Therefore, if there are no significant changes, the estimated number of new cars added to the Vietnamese market in January is only about 25,410 units, including 23,300 units domestically assembled and about 2,110 units imported.

Last year, reports showed that there were 25,300 cars produced and domestically assembled in January 2023, while the number of completely imported cars into Vietnam in the first month of the year reached 14,422 units. Therefore, a total of 39,722 new cars of all types were added to the Vietnamese car market in the first month of 2023.

Imported and domestically assembled cars in Vietnam both experienced significant declines in January. Photo: Viet Linh.

In January 2023, the Vietnamese car market suffered a sharp decline in sales, according to a report from the Vietnam Automobile Manufacturers’ Association (VAMA), with the entire market losing 51% of its consumption compared to the previous month. At that time, domestically assembled cars in Vietnam reached 8,086 units, while imported cars recorded sales of 9,228 units.

It is still unclear how the Vietnamese car market will develop in the first month of 2024. However, the overall sales figure in most of 2023 was relatively unstable and only reached its peak in December 2023, with a total consumption of 38,740 units.

It is likely that the activities of car production and import in Vietnam are currently proceeding cautiously, waiting for the latest developments in market sales. The decision of whether to increase the supply of cars, both domestically assembled and imported, may be made after automakers announce their sales figures for the first month of 2024.

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