Vietnam's car sales jump 31 percent

Insiders have expected auto sales to increase around 15 percent this year. Photo by VnExpress/Anh Quan

Industry insiders had anticipated the sharp sales increases due to a drop in the country's automotive tariffs.

Vietnamese consumers purchased 214,000 cars in the first nine months of 2016 -- a year-on-year leap of 31 percent -- according to the Vietnam Automobile Manufacturers’ Association (VAMA).

Sales of cars assembled in Vietnam went up 29 percent, while imports jumped 10 percent compared to the same period last year, the association reported.

Last month, Vietnam sold 26,551 cars -- an increase of 13 percent from August and 24 percent from September of 2015. The number includes SUVs, passenger cars and commercial vehicles.

Toyota was the most popular brand, having sold 5,110 cars representing 21 percent of the market.

Industry insiders expect sales of small cars to increase sharply in the near future since Vietnam lowered its car tax from 45 percent to 40 percent last July and plans to cut it further to 35 percent in 2018.

The tax policy applies to cars with engines smaller than 1.5 liters, which currently account for about half the Vietnamese market.

Next year, cars from other Southeast Asian countries will be imported at a tariffs of between zero and five percent starting in 2018.

Last year, Vietnam’s auto sales hit a record 245,000 units, up 55 percent from the previous year making it the fastest-growing automobile market in Southeast Asia.

VAMA expected sales to increase just 10-15 percent for 2016.

By VnExpress