Auto sales rise by 19%

The association’s members, which include most major auto companies except Hyundai and VinFast, sold 28,920 vehicles. EV maker Vinfast only reports global sales and not its Vietnamese breakup.

VAMA said commercial vehicles drove most of the additional sales. In the year to date its members and HTC sold 193,514 vehicles, roughly the same as a year ago.

The association said sales of fully built imports increased by 19% to 82,167 units, while that of locally assembled vehicles declined by 12% to 81,737.

The sales manager of a Toyota dealership in Ho Chi Minh City said the market has improved in the third quarter after being sluggish in the first two as consumers tightened their belts and also waited for more information about registration fee incentives for locally made cars.

In the end many customers could no longer hold out and bought one regardless of the fee cut, he said, adding that manufacturers and dealers have also been offering more promotions to spur demand.

A customer viewing cars at a Kia dealership in HCMC. Photo by VnExpress/Thanh Nhan

In an announcement last week, the government said a 50% registration fee cut for domestic vehicles is being considered for the last quarter.

This is half the length of its cuts in the last four years, which were effective for the entire second half, and analysts expect it to have a commensurate effect on sales.