Car Sales in Vietnam Increase, Affecting the Motorcycle Market
Published By : 09 Apr 2015 | Published By : QYRESEARCH
Vietnam is witnessing an increase in the car sales which reflects the country’s middle class preferring four-wheelers over two-wheelers. With over 5 percent economic growth rate for 15 years, the country famous for its huge number of scooters is now seeing a switch in the choice of the rapidly expanding middle class. According to the data released by Vietnam Automobile Manufacturers Association, the annual auto sales in Vietnam increased by 43 percent last year. International car brand such as Toyota, Mercedes-Benz, Ford and Honda reported rise in the annual sales figures.
According to a research by Economist Intelligence Unit, Vietnam is expected to be among the fastest-growing countries in the world. This has fuelled the auto industry in the country. High import tax has been the limiting factor in the growth of the Vietnamese auto industry. The industry looks forward to the removal of the import duties on cars traded between South Asian countries by 2018. High-end luxury car brands such as Porsche Cayennes and Bentleys are looking at the auto industry of the country with interest. Andreas Klinger, general director of Porsche's Vietnam importer mentioned that most of the buyers want their cars to be customized and there was a waiting list of almost 100 people for the German sports car.
With the rise in auto sales, the motorcycle industry is cautious. According to official data in state media, only 2.92 million motorcycles got registered last year compared to 3.3-3.7 million during the period from 2011 to 2013. Honda, Piaggio, Suzuki and Yamaha are the prominent motorcycle makers in Vietnam. Reflecting the sentiment of the middle class, Doan Van Tuan, a government employee, mentioned that the people would not prefer bikes after driving cars.