Automobile purchasing power in Vietnam fell the most in Southeast Asia

21 Aug 2023

A 31% decrease in sales after the first half of 2023 caused the Vietnamese automobile market to lose its 4th position, replaced by Philippines.

According to the Association of Southeast Asian Automobile Manufacturers (AAF), the region’s new vehicle sales will reach more than 1.6 million units after the first half of 2023. These sales increased by just 1% compared to the same period in 2022, which is almost unchanged. Data is compiled by AAF from 7 markets: Indonesia, Thailand, Malaysia, Philippines, Vietnam, Singapore, and Myanmar.

The top three in new car sales were unchanged, including Indonesia, Thailand, and Malaysia, respectively. Indonesia is the only market to surpass the half-million units’ rate after the first 6 months of 2023. This country is largest new car sales market in Southeast Asia and is chasing Thailand in terms of annual domestic car production.

The gloomy demand for cars in the first half of 2023 caused Vietnam’s automobile industry sales to fall sharply. The whole Vietnamese market consumed 176,976 vehicles (VAMA, Hyundai and VinFast), decrease by 31% compared to the first half of 2022. This brought Vietnam down to fourth place, lower than the Philippine with new car sales of 202,415 units.

In the first half of 2023, the Philippine economy have grown better than expected. In addition, strong spending, especially for pickup trucks, helped the country’s car market prosper, increasing by 30.7% compared to last year, according to Just Auto.

In terms of sales decline, the Vietnamese market is only behind Myanmar (76.4% decreased). However, this neighboring country has a small market size, having sales per month of less than 1,000 vehicles (figure of 2022’s first half). New car sales only in 2023’s first half was less than 2,000 units. Therefore, among the major markets, Vietnam has the largest decline.

Thailand also has negative growth, decreased by 5% compared to the first half of 2022. According to the Bangkok Post, the country’s political turmoil, which is the process of forming a new government has not ended, affecting the country’s automobile industry. People have a wait-and-see attitude, consider newly issued economic policies to be more confident for spending decisions. One of the other reasons for the slowdown in market liquidity is that the country’s car loan interest rates are also high.

In contrast to Thailand and Vietnam, Indonesia and Malaysia increased by 6.5% and 10.3% respectively in terms of sales. According to Paultan, Malaysia’s economy grew higher than expected, improved domestic auto production supply chains, new model launches, and competitive prices kept the market vibrant. In the first half of 2023, many of the country’s automakers still deliver orders owed from the VAT exemption program applied for in the first 6 months of 2022.

For Indonesia, Covid-19-related wholesale restrictions were fully lifted by the country at the end of 2022. Their economy will be boosted from the beginning of 2023 thanks to tourism recovery, improved domestic vehicle production supply chains, and many new models launched. All help people’s demand for car shopping grow, according to Just Auto.

In terms of the scale of domestic new car production, Thailand remains Southeast Asia’s first place. Vehicle shipments from factories in Thailand reached more than 900,000 units, serving both domestic and export demand. Indonesia followed behind with nearly 700,000 vehicles. Vietnam ranked fourth with more than 165,000 vehicles shipped after the first half of 2023.



Contact us

    Thiết kế website bởi Mona Media