Hanoi (VNS/VNA) - The decline in domestic automobileconsumption and its drop to 5th place in Southeast Asia can be attributed toboth external and internal factors, according to industry insiders.

The Association of Southeast Asian Automobile ManufacturersAssociation (AAF) reported that Indonesia took the lead in car sales with morethan 1 million units in 2023, down 4% over the same period last year. Malaysiawas in second with 799,731 units, an increase of 10.9% compared to 2022,meanwhile Thailand came in third with 775,780 units, a decrease of 8.7%compared to 2022.

The Philippines stood fourth with 429,807 cars, an increase of21.9% compared to 2022. Vietnam dropped to fifth with 301,989 cars, down 25.4%compared to the figure of 2022. They were followed by Singapore and Myanmarwith 38,670 vehicles and 3,357 vehicles respectively in 2023.

According to the Vietnam Automobile Manufacturers Association(VAMA), in 2023, all three vehicle segments decreased sharply. Passenger carsdecreased by 27%, commercial vehicles decreased by 16% and specialised vehiclesdecreased by 56% year-on-year.

In specifics, 181,380 locally assembled cars and 120,600 CBUvehicles were sold, down by 20% and 32% compared to 2022, respectively.

These figures did not include sales from non-member brands such asVinFast, Audi, Jaguar, Land Rover, Nissan, Subaru and Volkswagen, as they haveyet to publicise their sales data. VinFast currently does not provide monthlysales data in Vietnam.

According to experts, the auto industry has been experiencing adecline due to various factors such as unpredictable developments in theeconomy and unstable bank interest rates. These factors have affected thepurchasing power of people, leading to a slowdown in car sales.

To address this situation and stimulate the market, the Governmenthas implemented certain measures. One of these measures is a 50% reduction inregistration fees for domestically produced and assembled cars from July 1,2023, to December 31, 2023. In addition, businesses have been encouraged tosupport the remaining 50% of the fees or provide 100% fee incentives forimported cars. However, despite these efforts, the auto market has not achieveda significant breakthrough in sales.

It is anticipated that car purchasing power may improve in early2024 due to increased shopping needs associated with the celebration of theLunar New Year. However, the future purchasing power in the following monthsremains uncertain, as car manufacturers may adjust their incentives and businesspolicies, potentially impacting sales./.