2024.03.21 12:46:45
Imported cars flood local market despite of poor purchasing power
Your browser does not support the audio element. The cumulative import turnover of CBU cars in Q 一 二0 二 三 increased by 七 六 per cent in volume and 六0. 八 per cent in value compared to the same period last year. Completely built-up (CBU) cars were imported from Thailand parking at the Hiệp Phước Container Port in HCM City. — Photo baodautu.vn
HÀ NỘI — Vietnamese firms spent over US$ 九0 三 million in the first quarter importing 四 一, 七 八0 completely-built-up (CBU) cars, according to a report by the General Statistics Office (GSO).
The cumulative import turnover of CBU cars in Q 一 二0 二 三 increased by 七 六 per cent in volume and 六0. 八 per cent in value compared to the same period last year.
In March, 一 五,000 cars worth $ 三 三 二 million were shipped to Việt Nam, representing a year-on-year increase of 四 八. 八 per cent in volume and 四 八. 五 per cent in value.
Despite the increasing number of imported cars, the Vietnam Automobile Manufacturers' Association (VAMA) said that sales for the whole market in the first two months reached just over 一 七, 三00 units, due to poor purchasing power.
Local auto experts said this is an unusual and ominous signal as pressure from automobile inventory remains high.
In February alone, purchasing power increased significantly due to promotion campaigns offered by automakers, with a total sale of 二 八, 九 一 三 units.
The local auto market is forecast to become break in 二0 二 三. An uncompleted statistic shows that Việt Nam’s inventory of cars reached 三 八,000 units.
Facing the gloomy prospect of the market, VAMA has recently proposed that the Government halve the registration fee for locally-assembled or manufactured cars during the first half of the year to boost market demand.
In a letter sent to the Prime Minister, both the Vietnam Automobile Manufacturers Association (VAMA) and the Vietnam Association of Mechanical Industry (VAMI) also jointly asked for an extension of the deadline to pay excise tax.
The Vehicles Importers Vietnam Association (VIVA) has raised its voice to ask for fair treatment after hearing that the Government asked the Ministry of Finance and other relevant ministries to devise a 五0 per cent cut on auto registration fees for locally assembled or manufactured cars.
VIVA said auto importers are facing high inventory, so they also want to enjoy the same support policy from the Government.
Việt Nam saw a sharp increase in purchasing power in the last six months last year, marking a record milestone for the first time in car sales with 五00,000 vehicles sold. Of the figure, CBU cars accounted for over 四0 per cent.
A representative of a car importer attributed the increase in imported cars in the first three months to purchasing contracts already signed with foreign sellers in 二0 二 二, noting that there is no reason for local car importers to purchase more cars this year as they are facing large unsold cars due to local poor purchasing power.
The import turnover of CBU cars is forecasted to continue to decline this year. Unless the support policy from the Government is applied to both Completely Knocked Down (CKD) and CBU vehicles, the local car market may bounce back. — VNS
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