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After a decline of 6% in 2010, Vietnam's new vehicle sales returned to growth in Q111, as even the multipurpose vehicle (MPV) segment, impeded by increased taxes, showed a marked increase. This is in line with BMI's forecast for a return to positive growth in total sales in 2011, although we expect the rate of growth to slow later in the year. The total Q111 sales of 27,896 units include both domestically produced and imported vehicles of the companies represented by the Vietnam Automobile Manufacturers Association (VAMA). Imports accounted for 14,750 units, up 54.8% y-o-y. The value of imported vehicles was also up 62.2% y-o-y at US$262mn. This is despite efforts by the government to curb imports in favour of developing the domestic industry.
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