Automobile industry reported strong sales in Q1

VIETNAM, May 3 - HÀ NỘI — April 2024 marks the second consecutive month the automobile industry reported significant growth since the beginning of the year, according to a report by the General Statistics Office of Vietnam (GSO).

Last month, 25,700 vehicles were produced and assembled in Việt Nam, an increase of 4 per cent compared to the previous month (24,800 vehicles), marking a comeback from a sharp decline in sales before Tết.

Production in April exceeded the industry’s previous projection, estimated at 24,500 vehicles and a 5 per cent increase from the same period last year. The report, however, said the first quarter of 2024’s projection remained at 88,300 vehicles, marking a 6.6 per cent decrease year-on-year.

Economists said along with the implementation of numerous support and stimulus policies, the economy has been staying on a path of recovery which provided the industry with a much-needed sales boost. The Vietnam Automobile Manufacturers Association (VAMA) said its members had been reporting improved sales in March and April.

In addition, industry insiders and experts said the Government may continue offering reduced registration fees this year as part of a stimulus programme to encourage consumers to purchase vehicles produced and assembled domestically.

The previous three implementations have produced positive outcomes for the industry with owners enjoying a 5-6 per cent reduction in total costs. From December 2021 to May 2022, new registrations accounted for nearly half of the entire year’s sales. The industry set a sales record in 2022 with half a million vehicles sold throughout the year. — VNS