The automobile industry’s outlook for the fourth quarter of 2022

Overview of the automobile industry in the first eight months of 2022

 

Car sales in the first eight months of 2022 outperformed the same period in 2021
 

According to the Vietnam Automobile Manufacturers Association (VAMA), car sales in the entire market of its member units reached 30,846 vehicles of all types in August 2022, up 2% from July 2022 and 247% from the same period in 2021. According to TC Group (Thanh Cong Group), the manufacturer and distributor of Hyundai brand vehicles, this group consumed 5,449 vehicles in August. In addition, VinFast sold 1,220 vehicles.

 

In general, the entire market consumed 37,515 vehicles in August, bringing the total sales of the Vietnamese automobile market in the first eight months of 2022 to 328,630 vehicles of all types.

automobile industry: car sale in the whole market, 2019 - 8M/2022

Source: VAMA, VIRAC

Total market sales of VAMA member units reached 262,940 vehicles in the first eight months of 2022, a 50% increase over the same period last year; Thanh Cong Group sold 47,638 vehicles of all types; and VinFast sold 18,052 vehicles of all types.

car sales of VÂM, TC Group, Vinfast in 8M/2022 compared to 8M/2022

Source: VAMA, VIRAC

 

According to VAMA, passenger car sales among VAMA members reached 206,807 units in August 2022, a 69% increase over the previous year. This reflects people’s increasing demand for automobiles, particularly as the economy begins to recover after Covid-19.

 

Furthermore, commercial vehicle sales showed an encouraging trend, reaching 52,965 units, up 6% from the same period in 2021. Besides, sales of specialised vehicles reached 3,897 units, a 2% increase over the same period last year.

car sales of VAMA by type

 

Source: VAMA, VIRAC

Mitsubishi Xpander is still the most popular car model in the Vietnamese car market in August, with 2,842 units sold.

 

The next positions are: Toyota Corolla Cross (1,566 cars), Toyota Veloz Cross (1,566 cars), Hyundai Creta (1,417 cars), Hyundai Accent (1,172 cars), Toyota Vios (1,133 cars), Mazda CX-5 (1,100 cars). cars), Mazda3 (893 cars) ), VinFast Lux A2.0 (849 cars), Hyundai Santa Fe (849 cars) (838 cars).

 

New vehicles compete to enter the Vietnamese market in the first eight months of 2022.

 

In addition to Decree 103, which offers 50% registration fee incentives, the Vietnamese car market has experienced strong growth in the first eight months of 2022, thanks in part to the appearance of many new models that are popular with customers. Consumers have had access to completely new models, some of which have quickly reached the top selling cars, such as the Hyundai Creta, in addition to familiar names with upgraded customers such as the Mitsubishi Xpander, Toyota Fortuner, and so on.

 

The automobile industry VietNam 8M/2022

 

Despite their newness to the market, names like the Toyota Avanza / Veloz Cross duo, MG5, Kia Sportage, and so on are still considered by many customers when purchasing a car. The majority of the new models have B or C segment sizes and versatile designs such as SUV/MPV. This is also the “gu” of choosing a car for the majority of Vietnamese people right now.

 

Furthermore, the Vietnamese auto market promises to be extremely exciting from now until the end of 2022, when many new models will be ready to launch in September. These are the Ford Territory 2023, Suzuki Ertiga hybrid 2022, and Nissan Kicks 2022…

 

 
Electric cars are becoming more popular in Vietnam, thanks to a variety of government incentives.

 

In Vietnam, two outstanding special incentives for electric vehicles currently include a 0% registration fee for the first three years since first registration and a special consumption tax reduction from 15% to 3% from March 1, 2022, to the end of the next five years. The excise tax will rise to 11% over the next two years. It is clear that electric car models are receiving extremely attractive incentives in Vietnam.

 

automobile industry, vinfast

 

VinFast, the Vietnamese automaker, has also announced a plan to stop producing gasoline cars by the end of this year and focus solely on developing and manufacturing electric vehicles. VinFast is currently delivering the VF e34 to customers who have previously deposited and received orders for the VF8 and VF9 SUV models. It is expected that the VF8 will be delivered to Vietnamese customers by the end of this year.

 

Forecast for the automobile industry in the fourth quarter of 2022

 

According to VIRAC, the Vietnamese automobile industry will “cool down” in the fourth quarter of 2022. The root cause is:

 

In terms of supply, auto industry experts predict that the global semiconductor chip shortage will last until at least the end of 2022, when supply will be limited. 

 

In addition, a number of car manufacturers around the world have announced plans to reduce production because they have not resolved the supply chain issue.

 

Furthermore, the end of the 50% registration fee discount is likely to reduce people’s consumption demand. Besides, the current economy’s micro and macro factors will have an impact on the auto market in the near future.

 

However, VIRAC believes that there are opportunities for growth in the auto market. Many new models will be released in the final months of the year, and the Vietnam auto show 2022, which returns in October, promises to energize the market.

 


VIRAC offers a wide range of research reports on many economic sectors in Vietnam, ranging from market overview to market details, as well as products and services tailored to the needs of customers in a variety of fields.

 

Vietnam Industry Research and Consultancy Joint Stock Company is confident that it will be a trustworthy partner for your company as it expands into the Vietnamese market.

 

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