ASEAN KEY DESTINATIONS
New models increase car sales in Vietnam
Domestic auto sales increased slightly in October compared to the last few months as a host of automobile makers launched new cars.
Suzuki, Vinastar and Honda Viet Nam reported increases of 376, 300 and 218 units respectively.
Some automobile makers attributed the increase to contracts that were signed at the Viet Nam Motor Show 2012 held in Ha Noi in September. However, it has often been the case that more customers buy automobiles towards the end of the year.
The car companies have said that despite the slight recent increase, the figures as a whole represent a sharp decrease compared to sales over the same period last year. Toyota Viet Nam's sales reduced by 500 units compared to October 2011, while Truong Hai sold 749 fewer, GM Viet Nam 390 fewer and Ford 116 fewer.
October saw the most successful sales of the year at Mercedes-Benz Vietnam a record for a single month, a rise of 66 per cent compared to average month of the other quarters.
In the first 10 months, Viet Nam's entire auto industry figure was down by around 40 per cent. But Mercedes-Benz retained its No.1 position.
During the Viet Nam Motor Show 2012, 75 orders and more than 150 follow-ups, were received with customer support campaigns and enhanced after-sales service activities. The result was a good start for Mercedes-Benz in the last quarter of the year.
The service and parts business has shown significant growth over the last year with reported increase of 17 per cent in parts sales and vehicles at Mercedes-Benz authorised service dealers.
Michael Behrens, CEO of Mercedes-Benz Vietnam, said: "In October we started successfully into the fourth quarter with the new models, spearheaded by the new GLK and C and E-class vehicles are giving us significant tailwind ".
They said the market could struggle to reach sales of 100,000 units following several months of gloomy business results and no late surge expected. Last year's sales were over 140,000 units.
The industry has principally blamed the economic downturn for this worrying trend. They have also claimed that potential consumers are worried about possible car fees being introduced by the Ministry of Transport.
Earlier this year the ministry proposed that in the future every car owner should be required to pay between VND20-50 million per year in a move to try and restrict rising car numbers that will cause chronic traffic congestion.
However, the ministry have admitted that such fees will not be introduced during the next few years, and have committed to taking advice from relevant ministries and public opinion before reaching a final decision.
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