Hyundai most luxury car

Vietnam aims to obtain a GDP growth rate of 6.5 percent this year and average income per capita of $3,700. With rising incomes, car sales are expected to boom. One report said that 420,000 cars of different kinds were sold in 2020, including 400,000 cars with 16 seats or less, the same as 2019. Vietnam’s car market did not grow in 2020, but did not decrease by 15 percent as previously predicted by VAMA. Car sales dropped sharply in the first half of 2020 when the Covid-19 pandemic broke out. However, the sales went better in the last months of the year thanks to effective control of the pandemic, a 50 percent vehicle registration tax reduction policy, and car price decreases. While some enterprises reported minus growth rates, others still had positive growth rates. VinFast, a newcomer, with 30,000 cars sold in 2020, has successfully taken away market share once held by other manufacturers. SSI has estimated that the automobile market will see a growth rate of 16.3 percent in 2021 as car demand continues to be high. The figure may be 3 percent higher if the Covid-19 pandemic is contained. According to Vietnam Register (VR), there are 34 cars per 1,000 people in Vietnam. The figure is relatively low compared with other regional countries and the world. With average income increasing, cars will turn from a luxury good to a more common consumer good and the market size will increase, offering an opportunity to develop the automobile industry. According to Vietnam Register (VR), there are 34 cars per 1,000 people in Vietnam. The figure is relatively low compared with other regional countries and the world. Businesses believe that B-class sedans will serve as the mainstay to promote the development of the industry. The sales of B-class sedans lead the market with more than 60,000 cars sold in 2020. Despite difficulties caused by Covid-19 in 2020, the market segment still obtained growth. Toyota Vietnam reported that 30,000 Vios were …

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The Hanoitimes - With the Covid-19 impacts still looming on local economy, domestic car prices have gone down but remained nearly double the prices of vehicles sold in Thailand and Indonesia, mainly due to high fees and taxes for locally made cars. Rising domestic production capacity and existing government’s support policies to cut fees and taxes for locally made cars are expected to be major factors dragging down car prices in Vietnam in the coming time. Car production at Hyundai Thanh Cong manufacturing plant. Photo: Hoang Giang A representative from the Truong Hai Auto Corporation (Thaco), one of Vietnam’s leading car manufacturers, expected the country’s participation in free trade agreements (FTAs) with major partners, including the EU, Japan, UK and South Korea, would help further abate costs for importing car parts with import duty at 0%. With the Covid-19 impacts still looming on local economy, domestic car prices have gone down but remain nearly double the prices of vehicles sold in Thailand and Indonesia, mainly due to high fees and taxes for locally made cars. “High product quality and low base cost are essential for Vietnam cars to compete with their foreign peers,” said auto expert Nguyen Minh Dong, adding only a bigger market size could attract more investors to come in to produce cars in the country and enhance localization rate. Director of Hien Toyota noted while car manufacturers can streamline operation to drive down the production cost, taxes and fees are dependent on state policies. “Lowering taxes and fees for cars will no doubt reduce prices and bring more benefits for customers,” she said. Booming market demand A recent report from the SSI Securities Corporation suggested Vietnam’s income per capita is on the rise and set to grow at an average of 8-10% in the next decade. “Compared to regional countries, the current income per capita is fast approaching to a point of bursting demand for cars,” …

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Vietnamese enterprises are nurturing the dream of exporting CBU (completely built up) cars, which has partially come true, though exports remain very modest. In 2020, Thaco exported 1,407 CBU cars of different kinds, worth $50 million, to Thailand, a big automobile manufacturing center in Southeast Asia. Ford Vietnam, after increasing its production capacity to 40,000 products a year, has begun exporting EcoSport, Transit and Tourneo to some regional markets. In early 2021, VinFast caught public attention when stating that it was going to export two high-end electric vehicle models – VinFast VF33 and VinFast VF32. Meanwhile, TCMotor is preparing to export cars to regional markets by expanding production capacity, building a second factory that can produce 100,000 cars. Ford Vietnam’s CEO Nguyen Van Dung admitted that Ford’s exports remain modest, but the export scale will be larger in the future. The manufacturer expands its factory to serve domestic demand and export. The car models which are only assembled in Vietnam will be exported to other regional countries. According to Thaco’s president Tran Ba Duong, Thaco is planning to export more cars made in Chu Lai to regional markets. Vingroup’s president Pham Nhat Vuong affirmed that VinFast will export Vietnamese branded electric cars to the US in 2021 and it is willing to spend $2 billion to reach that goal. Le Ngoc Duc, CEO of TC Motor, said that Hyundai Motor, when cooperating with Thanh Cong Group, aims to turn Vietnam into a Hyundai automobile manufacturing center in Southeast Asia, which will not only satisfy domestic demand, but also exports. Businesspeople believe that the Vietnamese automobile market is growing fast, so Vietnam has all conditions to develop supporting industries and increase the localization ratio. The car demand in the country, where living standards have improved, is high enough for large-scale manufacturing. Meanwhile, the zero percent preferential tariff will help …

[Read more...] about Vietnam competes with Thailand, Indonesia in car exports