17:42 (GMT +7) - Monday 05/12/2016

Business

CBU automobiles double this year

Released at: 08:18, 31/10/2015

CBU automobiles double this year

GSO report puts volume growth at 83% and value growth at 100% for first ten months.

by Son Ho

Figures from the General Statistics Office show that the number of imported complete-built-up (CBU) automobiles in the first ten months of the year totaled over 94,600 units, valued at $2.3 billion, an increase of 83 per cent in number and 100 per cent in value year-on-year.

The figures also showed a clear change in import markets. In 2013 and 2014 South Korea led the way with an average of 15,000 to 16,000 units imported each year. This year, however, China has taken its place, with more than 20,000 units valued at $776 million. The Vietnam Automobile Manufacturers Association (VAMA) previously forecast that motor vehicle sales this year may reach 200,000 units.

 

Year

Number

Value

2010

53,100

$960 million

2011

55,500

$1.02 billion

2012

27,400

$615 million

2013

34,978

$708 billion

2014

72,000

$1.57 billion

10 months, 2015

94,610

$2.3 billion

 

The increasing number of imported automobiles significantly increased the revenue and profits of a number of automobile firms. Accumulated revenue from January to September for the Hoang Huy Group was VND417 billion ($18.69 million), a 230 per cent increase, for Truong Long Auto VND102 billion ($4.57 million), a 345 per cent increase, for TMT Motor VND185 billion ($8.29 million), a 422 per cent increase, and for Savico VND120 billion ($5.38 million), a 115 per cent increase.

Southeast Asia and India are the center for small cars with low prices. However, with falling tariffs under recent free trade agreements and policies to come into play by 2018, small cars from India and Thailand will gradually increase in Vietnam. The draft Law on Special Consumption Tax, which cuts rates from 45 per cent to 25 per cent for cars with an engine capacity of under 2 liters, is waiting to be passed. If this happens, the price of CBU units under 2 liters imported from ASEAN countries will fall between $2,500 and $4,000 and $1,500 to $2,500 for those from India. The KIA K3 1.6 AT, for example, which now has a price tag of $30.381, will then sell for $26,149.

  • TAGS
  • GSO
  • VAMA
  • CBU
  • auto market

User comment (0)

Send comment