Industry Update - Vietnam Auto Sales Down For the first time in the last year, automobile sales saw a sharp decrease of nearly 2,000 unit in May over the previous month. (Source: TBKTVN-VNN) June 9, 2008 The total sales of 16 members of the Vietnam Automobile Manufacturers' Association (VAMA) were 11,494 units in May, down by 1,777 units compared to the previous month. This was the first time the sales of cars decreased in the last one year. However, the signs of the downturn began last month when sales increased by 180 units only in April compared to March. According to VAMA, Vinamotor saw the most dramatic decrease in sales as its sold units were 1,932, a decrease of 1,588 units over the previous month. The sharp decrease has dropped Vinamotor to the second position in sales, giving up the first position to Toyota Motor Vietnam. In May 2008, Toyota sold 2,332 units, up by 67 units over the previous month, the smallest increase the manufacturer has seen in its operation history in Vietnam. Despite the slight decrease over the previous month, GM-Daewoo and Honda still maintained high sales with 1,355 and 626 units sold, respectively. The Spark model was launched onto the market in late May, which means that GM-Daewoo only began accepting orders at that time, and the manufacturer will be able to deliver the first Sparks in late June or early July. Ford Vietnam witnessed a sharp decrease in sales in May compared to April. Only 482 units were sold in May, down by 227 units over the previous month. The sharp decrease has been attributed to the slide in sales of Ford's popular Everest 4x2, which saw the decrease of 177 units over April with only 139 units sold. Meanwhile, other manufacturers, including Mercedes Benz, Mekong and Vinastar, had sales volumes rising slightly in May over the previous month. The sales decreases of the 16 VAMA members have been attributed to the recent increases of the import tax on complete built units (CBU) and tax on car part imports. Meanwhile, the tentative plan by the Ministry of Finance to raise vehicle registration fees to 10-15%, up by 5-13%, together with its plan to raise the luxury tax, has also been keeping customers away.