Auto sales up, but downturn starts to bite

Hanoi (VNA) - Most carmakers worldwide are bemoaning the nosedive in sales in 2008, while carmakers in Vietnam boasted a 37 percent sales growth last year.

Despite falling sales in the last four months of the year, strong sales in the first
seven months of the year was attributed to the overall growth rate, according to the
Vietnam Automobile Manufacturers' Association (VAMA), which represents 17 leading
automakers in the country. Total sales reached 110,186 units.

Japanese-invested Toyota , topped the list with 24,421 units sold, up 21 percent
year-on-year, followed by domestic truck and bus maker Vinamotor, with 20,887 units,
up 281 percent.

Kia assembler Truong Hai ranked third with 16,373 units sold, up 42 percent over the
corresponding period last year.

However, sales fell sharply in the last months of the year, as high inflation and
new vehicle taxes at home and the global economic slowdown hit Vietnamese consumers.

"Apart from the impact of the economic slowdown, a number of government policies
such as the registration fee, have negatively affected the industry", said former
General Director of Toyota Vietnam , Nobuhiko Murakami.

Only 9,293 vehicles were sold in December - the fourth month in a row when sales
fell, and a drop of 23 percent against the same month of 2007.

VAMA petitioned the government last month, asking for tax relief to help boost the
sector.

Dealers say demand will slow significantly in 2009 after the Government tripled
registration fees up to 15 percent of a car's purchase price from August last year,
compounding the effects of the economic slowdown.

Car ownership remains limited to the elite and emerging upper classes in the
country. Vietnam has about 1 million privately-owned cars, compared to over 21
million motorbikes.

According to the Ministry of Industry and Trade , Vietnam has more than 40
automakers and over 100 auto-parts producers, with a total production capacity of
over 200,000 units per year.-Enditem TTA1401.010 Auto sales up, but downturn starts
to bite
Hanoi (VNA) - Most carmakers worldwide are bemoaning the nosedive in sales in 2008,
while carmakers in Vietnam boasted a 37 percent sales growth last year.

Despite falling sales in the last four months of the year, strong sales in the first
seven months of the year was attributed to the overall growth rate, according to the
Vietnam Automobile Manufacturers' Association (VAMA), which represents 17 leading
automakers in the country. Total sales reached 110,186 units.

Japanese-invested Toyota , topped the list with 24,421 units sold, up 21 percent
year-on-year, followed by domestic truck and bus maker Vinamotor, with 20,887 units,
up 281 percent.

Kia assembler Truong Hai ranked third with 16,373 units sold, up 42 percent over the
corresponding period last year.

However, sales fell sharply in the last months of the year, as high inflation and
new vehicle taxes at home and the global economic slowdown hit Vietnamese consumers.

"Apart from the impact of the economic slowdown, a number of government policies
such as the registration fee, have negatively affected the industry", said former
General Director of Toyota Vietnam , Nobuhiko Murakami.

Only 9,293 vehicles were sold in December - the fourth month in a row when sales
fell, and a drop of 23 percent against the same month of 2007.

VAMA petitioned the government last month, asking for tax relief to help boost the
sector.

Dealers say demand will slow significantly in 2009 after the Government tripled
registration fees up to 15 percent of a car's purchase price from August last year,
compounding the effects of the economic slowdown.

Car ownership remains limited to the elite and emerging upper classes in the
country. Vietnam has about 1 million privately-owned cars, compared to over 21
million motorbikes.

According to the Ministry of Industry and Trade , Vietnam has more than 40
automakers and over 100 auto-parts producers, with a total production capacity of
over 200,000 units per year.-Enditem TTA1401.010 Auto sales up, but downturn starts
to bite
Hanoi (VNA) - Most carmakers worldwide are bemoaning the nosedive in sales in 2008,
while carmakers in Vietnam boasted a 37 percent sales growth last year.

Despite falling sales in the last four months of the year, strong sales in the first
seven months of the year was attributed to the overall growth rate, according to the
Vietnam Automobile Manufacturers' Association (VAMA), which represents 17 leading
automakers in the country. Total sales reached 110,186 units.

Japanese-invested Toyota , topped the list with 24,421 units sold, up 21 percent
year-on-year, followed by domestic truck and bus maker Vinamotor, with 20,887 units,
up 281 percent.

Kia assembler Truong Hai ranked third with 16,373 units sold, up 42 percent over the
corresponding period last year.

However, sales fell sharply in the last months of the year, as high inflation and
new vehicle taxes at home and the global economic slowdown hit Vietnamese consumers.

"Apart from the impact of the economic slowdown, a number of government policies
such as the registration fee, have negatively affected the industry", said former
General Director of Toyota Vietnam , Nobuhiko Murakami.

Only 9,293 vehicles were sold in December - the fourth month in a row when sales
fell, and a drop of 23 percent against the same month of 2007.

VAMA petitioned the government last month, asking for tax relief to help boost the
sector.

Dealers say demand will slow significantly in 2009 after the Government tripled
registration fees up to 15 percent of a car's purchase price from August last year,
compounding the effects of the economic slowdown.

Car ownership remains limited to the elite and emerging upper classes in the
country. Vietnam has about 1 million privately-owned cars, compared to over 21
million motorbikes.

According to the Ministry of Industry and Trade , Vietnam has more than 40
automakers and over 100 auto-parts producers, with a total production capacity of
over 200,000 units per year.-