Mr. Kazuhiro Yamana, General Director of Vina Star Motors tells VET that the motor vehicle market has been growing but its size is not sufficiently large for many brands to manufacture cars at a profit.
We must carefully assess the market’s development and government’s support strategy when making investment decisions. The market, however, is developing far faster than we expected though customers may adopt a ‘wait-and-see’ attitude regarding falling import duties on vehicles from other ASEAN countries. Demand is increasing rapidly as purchasing power improves in the country.
In terms of policy recommendations, in order to maintain a certain level of local manufacturing there must be benefits provided to locally-manufactured models. But such benefits can’t be created by putting a greater burden on imported completely-built-up (CBU) models. Tax reductions on locally-produced models would help grow the market as a whole.
From a motor car manufacturer’s standpoint, we would like to offer customers vehicles with high quality and low cost. Once domestic demand is large enough we will choose to manufacture domestically. Therefore, balanced growth in the market and the manufacturing industry is crucial. In order to increase manufacturing, domestic demand must be increased, as manufacturing requires sufficient volumes to absorb high amounts of manufacturing investment. Therefore, once demand grows, manufacturing will increase accordingly.
Regarding our business targets, we would like to return to our market share in 2004 of 13 per cent as soon as possible. To reach this objective we aim to achieve sales of 5,000 units this year and 10,000 in 2018, continuing with our aggressive marketing activities and reinforced sales network.