Vietnam's car market on a roll
HANOI - The 11 joint-venture car makers in Vietnam sold a combined
1,808 vehicles in October, the highest figure in a single month since the
first foreign auto maker came to the country 10 years ago.
The monthly sales, which comprised 1,200 passenger cars and 608
commercial vehicles, took this year's total sales to 15,263 units (9,905
passenger cars and 5,358 commercial vehicles). This total has already
exceeded the full-year figure for 2000, which was 13,955.
Analysts said already robust sales had received a boost from individuals'
and businesses' tendency to shop more intensively in the closing months
of the year. The southern region is the leading consumer, with 1,034
sales last month compared with 682 in the north and 92 in the center.
Toyota retained its grip on the market leader's position, selling 475 cars
in October - 47 more than September, and a 26 percent market share.
The newly released Corolla Altis has sold 382 units in the three months
since its introduction.
Ford Vietnam surpassed Vidamco for the first time, selling 273 cars in
October compared with Vidamco's 256 (15 and 14 percent market
shares, respectively). Ford's robust sales were attributed to the success
of its Mazda-lookalike Laser, with 101 units selling in October. Ford
also sold 32 units of its new sports utility, the Ford Escape (a cousin of
the Mazda Tribute, the first vehicle jointly developed by Mazda and
Ford), in its first month on the market.
Vietnam Motor Corp (VMC), which sold 1,430 cars in the first 10
months, was overtaken by Mercedes-Benz Vietnam (MBV) with 1,489.
This is a major turnaround from last year, when VMC sold 2,222 cars to
MBV's 547. MBV's reversal of fortune is based on healthy sales of its
diesel-powered MB140D minibus, with 1,107 sales in 10 months.
VMC, once was the biggest car maker in Vietnam in terms of production
and sales, may be the only car maker not to exceed last year's sales.
Vinastar, the biggest maker of sports utility vehicles (under the Mitsubishi
Pajero trademark), is also enjoying robust sales: last month it sold 141
units, building the year's total to 1,265 so far. Vinastar's Jolie eight-seater
model is the company's best-seller, with 54 sold in October and 445 in
the first 10 months.
Mekong Auto, which has suffered from the poor sales in the past few
years, has bounced back with 690 sales in the first 10 months, against
414 for the whole of 2000. Its robust sales of the Fiat Siena mini-sedan
were its savior, with 399 units sold, although its sports utility, bus and
truck models are still in the doldrums.
Hino, a world-renowned truck maker and Japan's largest, is suffering the
most, selling only eight trucks last month and 77 so far this year. This
continues a pattern that saw it offload only 91 trucks in 2000, 44 in 1999
and 64 in 1998. Hino's weakness is said to be the competition from
imports of new and used trucks, mostly from South Korea, which are
now flooding the streets under the trademarks of Hyundai, Asia,
Ssangyong and Kia.
Industry insiders estimated that the number of cars sold by local
assemblers would reach 18,000 units by the end of this year and over
23,000 units in 2002, compared with 14,000 last year. They say the
industry has received a boost from the introduction of Enterprise Law,
which has stimulated new business start-ups, powering corporate
demand for vehicles. Meanwhile, the increasing number of affluent
Vietnamese are upgrading from motorbikes to cars, considering them
safer and more comfortable.
But most of the 11 joint ventures are still producing at well below full
capacity - often as little as 10 percent - and only a handful have turned a
profit so far. Last month, Nissan had its license canceled after failing to
kick off construction of its plant in Da Nang. Analysts said the company
had decided that the market was still too small at this stage to support a
dozen joint ventures.
Vietnam is still a relatively small car market in Southeast Asia, but the
larger players are confident that demand will eventually allow them to
increase output and operate more profitably.
Asia Times - November 20, 2001.
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