Car imports on the rise despite low demand

In July alone, around 17,000 CBU cars were imported into Vietnam with a total value of US$337 million, up 7% in volume and 8.7% in value month on month.

This is the third consecutive month that has seen a rise in car imports into the market.

Indonesia surpassed Thailand to become the biggest supplier of cars to Vietnam in the first half with 32,797 units valued at US$478 million, accounting for 44% of the country’s total volume and 31.2% in value.

It was followed by Thailand that supplied 23,736 cars worth US$463 million, and China that shipped 14,729 cars worth US$456 million.

The growth momentum of imported cars can be put down to the arrival of many brands from China such as BYD, Lynk & Co, Omoda, and Jeacoo.

It’s noteworthy that car imports keep rising while domestic demand is slowing down. Statistics show the total automobile market capacity, excluding Hyundai and VinFast, only reached 134,884 units in the first half of this year, a slight decrease of 2% over the same period last year.

Though the economy is showing signs of positive recovery, experts say, the auto market in the second half of the year is not really optimistic. Domestic car purchasing power is projected to grow, but it will likely not be commensurate with the increase in car imports.