Covid restrictions put the brakes on car sales
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The Vietnam Automobile Manufacturers Association said its members sold only 7,714 vehicles in August, the lowest number in seven years.
Their sales were down 68 percent year-on-year for the month and 47 percent from July.
The Vietnam Automobile Manufacturers Association said its members sold only 7,714 vehicles in August, the lowest number in seven years.Their sales were down 68 percent year-on-year for the month and 47 percent from July.
It marked the fifth consecutive month of decline for the industry, which attributed the slump to social distancing amid Covid-19 in many provinces and cities, especially Hanoi and Ho Chi Minh City.
The country’s largest automaker and non-member TC Motor, which assembles Huyndaicars, saw sales plummet by 60 percent year-on-year in August to 2,182.
VAMA members have sold 157,777 vehicles so far this year, up 8 percent from 2020.
Car sales increased sharply in the second half of 2020 after a 50 percent cut was made to registration fees, which are substantial at 10-12 percent of the vehicle price. There have been no rate cuts this year.
TC Motor’s sales for the year were down 2 percent to 40,248 units, the first time ever its sales have declined.
Questions & Answers
Q.What was the main reason for the significant drop in car sales?
What was the main reason for the significant drop in car sales?
The industry attributed the slump to social distancing measures implemented due to Covid-19. These restrictions were particularly impactful in major cities like Hanoi and Ho Chi Minh City.
Q.How do August's sales figures compare to previous periods?
How do August's sales figures compare to previous periods?
August sales were the lowest in seven years for Vietnam Automobile Manufacturers Association members. They were down 68 percent year-on-year and 47 percent from July, marking the fifth consecutive month of decline.
Q.Despite the recent decline, how have VAMA members' sales performed overall this year?
Despite the recent decline, how have VAMA members' sales performed overall this year?
VAMA members have sold 157,777 vehicles so far this year. This figure represents an 8 percent increase compared to their sales performance in 2020.
Q.What factor boosted car sales in the latter half of 2020 that is not present this year?
What factor boosted car sales in the latter half of 2020 that is not present this year?
Car sales increased sharply in the second half of 2020 due to a 50 percent cut in registration fees. There have been no such rate cuts implemented this year.
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