vietnam automobile industry report q2/2018€¦ · according to the nielsen consumer confidence...

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VIETNAM AUTOMOBILE INDUSTRY REPORT Q2/2018

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OICA Organisation Internationale des Constructeurs d'Automobiles (International Organisation of Motor Vehicle Manufacturers)

GDVC General Department of Vietnam Customs

GSO General Statistics Office

MOIT Ministry of Industry and Trade

UN Comtrade United Nations International Trade Statistics Database

VAMA Vietnam Automobile Manufacturer Association

VAMI Vietnam Association of Mechanical Industry

VIRAC Vietnam Industry Research And Consultancy

Abbreviations

3

Executive summary 4 2.2.1 Scale and characteristics 49

1. Business environment 6 2.2.2 Industry value chain 55

1.1 Macroeconomics 6 2.2.3 Industry position 57

1.2 Legal barrier 11 2.2.4 Spare parts 59

1.3 Impact of free trade agreements 22 2.2.5 Production 61

2. Industry overview 26 2.2.6 Consumption 65

2.1 World automobile market 26 2.2.7 Import 75

2.1.1 Spare parts 26 2.2.8 Automobile prices 78

2.1.2 Production 29 2.2.9 Distribution system 783

2.1.3 Consumption 32 3. Risks and Challenges 87

2.1.4 Import - export 38 4. Driving forces 93

2.1.5 Top typical countries 41 5. Planning and forecast 96

2.1.6 Top typical brands 45 6. Enterprises 103

2.2 Vietnam automobile market 49

Content

2017 continued to show the world automobile

market.

The world’s auto protectiopn worrkshops are

still located in three traditional areas, with the

car industry was born early in North America,

Western Europe and East Asia.

In 2017, the world’s atutomobile consumption

was estimated at 96,800,000 units, up 3.1%

from the same period last year.

Automobile exports in the world in 2017

continued to fall sharply and plunged the most

since 2012, when the total export value

reached only $ 629.49 billion.

The atutomobile industry in Vietnam today is

largely stopped at simple assembly. The

localization rate is around10%.

The newly promulgated Decree 116/2017 /

ND-CP on Production, Assembly and Trading

of Automobiles is expected to create new

opportunities In the development of

production activities of automobile companies

right in Vietnam instead of yielding to

imported cars.

After the first 3 months of 2018, production

and assembly of domestic cars reached 68.94

thousand vehicles, slightly up 7.81% over the

same period in 2017.

In the car assembly structure in Vietnam,

passenger cars always maintain a high

proportion of 60-70%.

4

Executive summary

Content is intentionally removed for demo purpose

According to the Vietnam Association of

Automobile Manufacturers (VAMA), in the first

three months of 2018, the whole automobile

market achieved sales of 58,558 thousand

vehicles (including passenger cars, trucks, buses

and some other vehicles), down 2% over the

same period in 2017.

In the top 10 most sold cars in the first three

months of 2018, up to nine were domestically

assembled vehicles, ranging from passenger

cars of all sizes to crossovers, continued to take

the lead were the two new models from Toyota,

followed by two models of Mazda.

High concentration market share: In 2016,2017

and Q1/ 2018, more than 70% of VAMA's car

market share is held by Truong Hai, Toyota,

and Ford. In the first three months of 2018,

Truong Hai remained its position - the largest

holding company with 42.7% market share.

According to VIRAC estimates, the car

ownership per 1,000 people in Vietnam in 2016

(31 cars) is still low compared to other

countries in the region as well as in the world.

According to General Department of Vietnam

Customs, in the first 3 months of 2018, the

country imported 4,217 cars of all types, total

import value was only USD 118.4 million.

Compared to the same period of 2017, imports

in the first 3 months of 2018 decreased 84% in

quantity, down 75.8% in value.

The impact from Decree 116 has led to a sharp

decline in the number of imported vehicles in

the first three months of the year in all familiar

markets.

In addition to the risks of policy, politics and

currency, the sector faces challenges in terms of

capital, technology, human resources,

supporting industries, government policies,

infrastructure and environmental pollution…

With a forecasted growth rate of 10-15% for

the period 2016 – 2020.

5

.

Executive summary


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1. Business environment

1.1 Macroeconomics

1.2 Legal barrier

1.3 Impact of free trade agreements

Content

7

Source: VIRAC, GSO

Source: VIRAC, GSO


1.1 Macroeconomics

The country economic background in the first quarter of 2018 still

remained rising trend from 2017. Gross domestic product (GDP) in the

first quarter of 2018 is estimated to increase 7.38% over the same period

last year.

Consumer price index (CPI) in the first three months of 2018 has a

lot of changes.

GDP growth by Quarters, 2015 – Q1/2018

Monthly CPI fluctuations, 2015 – 3/2018



1.1. Macroeconomics

8

Source: VIRAC, GSO

According to the Nielsen Consumer Confidence Index, the consumer

confidence index of Vietnam in the forth of 2017 decreased 1 point,

compared with the previous quarter, reaching 115 points.

GDP per capita has grown significantly over the years. USDGDP per capita, 2013 - 2017


Source: VIRAC, GSO

9


1.1 Macroeconomics

Source: VIRAC, GSO

Market interest rates are stable since 2015.

VND/USD exchange rate, 2013-3/2018


Lending interest rate and mobilizing interest rate, 2012-2017

%

Source: VIRAC, SBV

The VND/USD exchange rate was stable and continued to be supported by

the abundant supply of foreign currency and the State Bank of Vietnam

(SBV) continuously bought foreign currency reserves.

10

Level of urbanization, 2010 - 2017

Disposable income and household expenditures, 2008 – 2017f

Source: VIRAC, GSO

Source: VIRAC, GSO

Increase in income and purchasing power:

The increasing proportion of people living in urban areas has contributed

to the expansion of the auto market.


1.1 Macroeconomics

VND million


11


1.1 Macroeconomics

1.2 Legal barrier


Content

12

Strengthening the quality control of motorized vehicles:


1.2 Legal barrier

Type of car

Maintenance cycle

Regulation of maintenance of means of transport

Source: VIRAC summarized Circular53/2014/TT-BCTVT

Vehicle load control:

Draft Law on Corporate Income Tax:


13

To change the regulations on prices for special consumption tax calculation for imported automobiles of under 24 seats.


1.2 Legal barrier


14

The draft import tax applies to automobile parts

Source: VIRAC

Menu of goods Commodity code details Tax rate


1.2 Legal barrier

If the current Most favored nation (MFN) import tariff is set at the WTO

commitment ceiling, it will remain the same as the current tariff, but if

lower, the increase will be equal to the committed ceiling.


15

Segment Current SCTFrom 1/7/2016

- 31/12/2018

From

1/1/2018

1

2

3

4

5

6

7

8

Roadmap to apply special consumption tax on cars

Source: VIRAC summarized Circular165/2014/TT-BTC


1.2 Legal barrier

Modification of import tax on CB Units from a number of countries:


16


1.2 Legal barrier

According to Decision No. 49/2011 / QD-TT, new cars, motorcycles assembled and imported must meet the emission standard of 4 (Euro 4).


17


1.2 Legal barrier

Decree No. 116/2017 / ND-CP of October 17, 1977 stipulating the conditions for production, assembly, import and business of warranty and

maintenance services of automobiles of various types and effective from the date of signing.


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1.2 Legal barrier


General provisions on car import business:

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1.2 Legal barrier

Conditions for car maintenance and warranty:


20


1.2 Legal barrier


On November 16, 2017, Decree No. 125/2017 / ND-CP was promulgated on amending and supplementing a number of articles of the Government's

Decree No. 122/2016 / ND-CP dated September 1, 2016 about export tariffs, preferential import tariffs, list of commodities and absolute tariffs, mixed

taxes, import tax outside tariff quotas.

21

The Ministry of Transport has issued Circular No. 03/2018 / TT-BGTVT guiding the implementation of Decree 116 on technical safety and quality

control and environmental protection applicable to imported cars.


1.2 Legal barrier


22


1.1 Macroeconomics

1.2 Legal barrier


Content

23

WTO – Increasing competition in the industry.

No. Unit

MFN tariff at

the time of

accession(%)

Commitment rates in the WTO

When

joining (%)Final (%)

Duration of

implementatio

n (since

accession)

1

2

3

a)

b)

c)

Roadmap for WTO tariff reductions for complete cars and auto parts

imports

Source: VIRAC




24

AFTA, ASEAN + 3 – Vietnam is in danger of becoming a market for foreign car consumption.

AFTA 2008 - 2010 2011 2012 2013 2014 2015 2016 2017 2018

Tax rate (%)




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CPTPP - If not a member of CPTPP, Vietnam's automobile industry will hardly survive after 2018, when it must compete directly with Thailand, Indonesia.

Regional Comprehensive Economic Partnership (RCEP) – When participating, Vietnam will have a great opportunity to Japan support development of

processing industry, manufacturing in general and the automotive industry in particular.




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2. Industry overview

2.1 World automobile market

2.1.1 Spare parts

2.1.2 Production

2.1.3 Consumption

2.1.4 Import - export

2.1.5 Top typical countries

2.1.6 Top typical brands

Content

27


2.1 World automobile market – 2.1.1 Spare parts

Country RankingProportion

(%)

Import structure of automobile components and

accessories, 2017e

Source: VIRAC, UN ComtradeSource: VIRAC, UN Comtrade

USD billion

Import of world car components, 2010 - 2017e


28

Country RankingProportion

(%)

Export structure of automobile components and

accessories, 2017e

Source: VIRAC, UN Comtrade

In the 1999s, except for Japan, other East Asian countries took a modest place in

the auto production of the global automotive production network.


2.1 World automobile market – 2.1.1 Spare parts


29



2.1.1 Spare parts

2.1.2 Production

2.1.3 Consumption




Content

30

Structure of world production by vehicle, 2017

Source: VIRAC, OICA

Million Units

Source: VIRAC, OICA


2.1 World automobile market – 2.1.2 Production

2017 continues to show the growth of world’s

automobile car market.

Production of cars in the world, 2010 - 2017


31

Source: VIRAC, OICA

Today, the world's production of car automobiles is still in place in three traditional areas, with the early auto industry in North America, Western Europe

and East Asia. While Western Europe with Germany's largest production - the first place to bring cars into mass production in the late 19th century,


2.1 World automobile market – 2.1.2 Production

Production structure by region, 2016 - 2017


32



2.1.1 Spare parts

2.1.2 Production

2.1.3 Consumption




Content

33

Source: VIRAC, OICA

Million Units


2.1 World automobile market – 2.1.3 Consumption

Global car sales in 2017 were 96.8 million vehicles, up 3.1%

from 2016,

World car consumption by type, 2010 - 2017


Top 10 World’s best-selling cars , 2017

34

Million Units

Source: VIRAC, OICA


2.1 World automobile market – 2.13 Consumption

Although the global market is growing, it is uneven across regions.

Consumption of car in the world, 2013 - 2017


35



Source: VIRAC, OICA

Thousand UnitsCar consumption of ASEAN Automotive Federation members (AAF), 2017

36

Source: VIRAC, OICA

Source: VIRAC, OICA

According to 2015 statistics, America and Asia -

Oceania is the largest car consumption region in the

world with a share of 32.9% and 33.5%, with major

contributions from the United States and China.

Consumption in the US will reach 17.47 million units, a record high. Since 2001, US

household finances have improved steadily as the economy grew to its highest level in a

decade,



The number of vehicles used in the world, 2010 - 2015e

Structure of vehicle usage by area, 2015


37

Number of vehicles per 1,000 people in some typical countries, 2015

* Average automobile ownership: 182 units/ 1,000 people

Source: VIRAC, OICA




38



2.1.1 Spare parts

2.1.2 Production

2.1.3 Consumption




Content

39

Source: VIRAC, UN Comtrade

Million Units


2.1 World automobile market – 2.1.4 Import - export

Automobile exports in the world in 2017 fell the most since 2012.

Exporting cars in the world, 2010 – 2017e


40

Source: VIRAC, UN ComtradeSource: VIRAC, UN Comtrade

Top largest exporters of automobiles are Germany, Japan, Mexico, Canada...


2.1 World automobile market – 2.1.4 Import - export

Structure of automobile exports by country, 2017e Import structure of cars by country, 2017e


41



2.1.1 Spare parts

2.1.2 Production

2.1.3 Consumption




Content

42

China - The world's largest car consumption market

US - The market continued to grow for 7 years

Place Country 2016 2017

1

2

3

4

5

6

7

8

9

10

Top the largest automobile consumption countries by volume,

2017

Source: VIRAC, OICA


2.1 World automobile market – 2.1.5 Top typical countries


43

Japan – Growing after three consecutive years of decline

Germany - Europe's largest automobile market and considered the birthplace of the automobile industry

India - Emerging markets.

UK

Brazil




44

France

Italia

Canada – Strong growth thanks to exports benefited from increased demand in the US




45



2.1.1 Spare parts

2.1.2 Production

2.1.3 Consumption




Content

46

Source: VIRAC, OICA

Volkswagen (VW for short)

Toyota Môtôr Corporation

Renault-Nissan

Hyundai-Kia


2.1 World automobile market – 2.1.6 Top typical brands

Unit: Thousand Units

Top 10 leading producers in the world, 2016


47

General Môtôrs Corporation

Ford

FCA

Honda Motor

Psa

Suzuki




48



Source: VIRAC, Brand Finance

Billion USD

Top ten world’s most-priced cars published by Brand Finance, 2017

49


2.2 Vietnam automobile market

2.2.1 Scale and characteristics

2.2.2 Industry value chain

2.2.3 Industry position

2.2.4 Spare parts

2.2.5 Production

2.2.6 Consumption

2.2.7 Import

2.2.8 Automobile prices

2.2.9 Distribution system

Content

50


2.2 Vietnam automobile market – 2.2.1 Scale and characteristics

Market segments


51



Source: VIRAC, GSO Source: VIRAC, GSO

The number of enterprises operating in automobile assembly and assembling sector in 2016 is 65 enterprises, increasing 22.64% in comparison with

2015.

Number of employees, 2010-2016Number of businesses, 2010-2016


52



Source: VIRAC, GSOSource: VIRAC, GSO

VND billion

With the increasing disposable income of the people, the rising middle class has led to a growing demand for cars and used cars.

Turnover of automobile manufacturing and

assembly, 2010 – 2016

Turnover of automobile wholesaling and retailing,

2010 – 2016


VND billion

53

Source: VIRAC, VAMA



In the first three months of 2018, Truong Hai continues to be the largest

holding company, but has dropped to only 42.7% of total car

consumption in the country.

Vehicle consumption structure by business, Q1/2018


54

The form of car assembly by the degree of complexity increases:




55






2.2.4 Spare parts

2.2.5 Production

2.2.6 Consumption

2.2.7 Import



Content

56


2.1 Vietnam automobile market – 2.2.3 Industry value chain

Vietnam automobile industry value chain

Source: VIRAC, OICA, VAMA


57






2.2.4 Spare parts

2.2.5 Production

2.2.6 Consumption

2.2.7 Import


Content

58

Source: VIRAC, OICA, GSO

Industry position of Vietnamese cars compared with the world in 2017


2.2 Vietnam automobile market – 2.2.2 Industry position


59






2.2.4 Spare parts

2.2.5 Production

2.2.6 Consumption

2.2.7 Import



Content

60

The automobile industry in Vietnam today is largely stopped at simple

assembly. The localization rate is about 10%.


2.2 Vietnam automobile market – 2.2.4 Spare parts

Source: VIRAC, GDVC

Source: VIRAC, VAMA

USD billionImport of car accessories, 2010 – Q1/2018

Localization rate of some countries in the region, 2016e


61

According to General Department of Customs, in the first three

months of 2018, Vietnam spent 738.9 million USD dollars.

Import of auomobile spare parts by countries, Q1/2016-Q1/2018

Import structure of automobile spare parts, Q1/2018



2.2 Vietnam automobile market – 2.2.4 Spare parts

Source: VIRAC, VAMA

Source: VIRAC, VAMA

USD million

62






2.2.4 Spare parts

2.2.5 Production

2.2.6 Consumption

2.2.7 Import



Content

63

Source: VIRAC, GSO, VAMA

Source: VIRAC, THACO

Thousand units

Thousand units


2.2 Vietnam automobile market – 2.2.5 Production

In the first three month of 2018, assembly production reached 68.94

thousand vehicles, up 7.81% over the same period in 2017.

Production output of THACO, 2010 - 2016

Production and assembly of automobiles in Vietnam, 2010 - 2017


64

Source: VIRAC, GSO

Thousand units

Source: VIRAC, Ford



In the car assembly structure in Vietnam, passenger cars always maintain

a high proportion of 60-70%.

Production, assembly structure by vehicle type, 2010 – Q1/2018

Traffic panorama of Vietnam, 2016


65



Expenses for research and development investment

At present, Vietnam's automobile industry has almost no

investment in research and development (R&D).Supplier Relevant units R&D Centre Factory

Source: VIRAC, THACO

Value chain assembly and production of Truong

Hai Auto


66






2.2.4 Spare parts

2.2.5 Production

2.2.6 Consumption

2.2.7 Import



Content

67

Thousand units

Source: VIRAC, VAMA

In 2017, Vietnam car consumption was estimated at 272,250 thousand Units, down 10.3% from the same period last year.


2.2 Vietnam automobile market – 2.2.6 Consumption

General automobile consumption in Vietnam, 2006-2017


68

The trend of car development in Vietnam is against the other countries in

the region.

Trends in automobile industry development in some Southeast Asian

countries, 2011 - 2016





69

According to statistics from OICA and VAMA, car ownership per 1,000

people in Vietnam in 2016 (31 cars) is still low compared to other

countries in the region as well as in the world.

Unit


Number of cars per 100 households by urban and rural areas,

2004 – 2016e

Source: VIRAC, GSO

Unit



Number of cars owned per 1,000 people, 2016e


70

Source: VIRAC, VAMA



Thousand units

The overall car market consumption in September continued to decline as the car market remained bleak and did not show any resurgence of growth

despite the decline in car sales in many segments.

Consumption of cars by vehicle type, 1/2016 – 12/2017


71

Source: VIRAC, VAMA

Thousand units



In 2017, Vietnam consumed up to

272,750 car Units, down 10% compared

to 2016.

Consumption output by car origin, 1/2016 – 12/2017


Ford EcoSport

Kia Morning

72

Top 10 best selling cars 2017

Toyota Vios

Ford Ranger

Mazda 3

Mazda CX-5

Source: VIRAC, VAMA



Kia Cerato

Honda City

Toyota Fortuner

Toyota Innova

Thousand unitsIn 2017, Toyota Vios continues to be the best-selling car on the market.


73

Thousand Units

Source: VIRAC, VAMASource: VIRAC, VAMA



Consumption structure of VAMA members by region , 2015-2017Consumption vehicles of VAMA members by region, 2017


Thousand units

74

Source: VIRAC, VAMA Source: VIRAC, VAMA



High concentration market share: In 2016 and the first nine months of 2017, more than 71% of VAMA's vehicle consumption market share is held by

Truong Hai, Toyota, and Ford.

Vehicle consumption structure by business, 2016 Vehicle consumption structure by business, 2017


Truong Hai Toyota

Distribution scale

Sales in 9M/2017

Brands

Marketing strategy

Promotion

Human resource training

Product advantage

Strength

Weakness

Direct competitive products

75

Competitive Analysis between Truong Hai and Toyota Vietnam by the end of September 2017

Source: VIRAC




76






2.2.4 Spare parts

2.2.5 Production

2.2.6 Consumption

2.2.7 Import



Content

77

Source: VIRAC, GDVC

Thousand Units

Total imported cars in 2017 reached 97,213 thousand, worth $2.2

billion,


2.2 Vietnam automobile market – 2.2.7 Import

Import of automobiles in complete units, 2011-2017


78

Source: VIRAC, GDVC


2.2 Vietnam automobile market – 2.2.7 Import

In 2017, Thailand remained the largest auto market for Vietnam with 38,244 vehicles, with an average price of 395 million VND/Unit.

Importing cars by country, 2015-2017


Thousand units

79






2.2.4 Spare parts

2.2.5 Production

2.2.6 Consumption

2.2.7 Import



Content

80

Country< 2,000

cc

2,000 -

3,000 cc

> 3,000

cc

10 - 16

seats16 seats Pick-up

Import tax on cars by country (%), 12/2016

Source: VIRAC, MOIT

Source: VIRAC

The price of cars in Vietnam is 1.2 to 1.8 times higher than that of other

countries in the region and in the world, depending on the category.

USD thousand


2.2 Vietnam automobile market – 2.2.8 Automobile prices

Automobile prices comparing Vietnam with other countries, 6/2017


81

List of taxes applicable on a car in Vietnam: Fees to be paid when wheeled on the road:

Source: VIRAC



Price of vehicle according to the cost structure of the consumer must bear


It can be seen that as of December, 2017, prices of cars in Vietnam are

tending to decrease compared to the end of September.

82

VND million



Source: VIRAC

Price movements of some major vehicles, 6/2013 - 12/2017




Source: VIRAC

Car type

(Capacity)

Former tariff, prior to 1/1/2018

Original price Import tariff SC tariff VAT

Corporate

income tax Local price

Imported car prices from ASEAN before 1/1/2018, assuming an original price of 100

Car type (Capacity)

Former tariff, prior to 1/1/2018

Original

price

Import

tariff SC tariff VAT

Corporate

income

tax Local price

Deduction

level

Source: VIRAC

Imported car prices from ASEAN after 1/1/2018, assuming an original price of 100

84






2.2.4 Spare parts

2.2.5 Production

2.2.6 Consumption

2.2.7 Import



Content

85

Automobile brands in Vietnam often invest their own distribution system or

cooperate with dealers to bring their products to customers.


2.2 Vietnam automobile market – 2.2.9 Distribution


86

In 2017, the volatile auto market also affected the business of retail distribution.


2.2 Vietnam automobile market – 2.2.9 Distribution


87

3. Risks and Challenges

Content

88

Risk factors

Policy risk

Political risk

Source: VIRAC, Yahoo Finance

Exchange rate risk


VND/CNY exchange rate, 1/2016-12/2017


89

The car manufacturing and assembly industry faces many challenges

Low localization rate

Direct competitors

Potential opponents



90

Capital and technology

Not high human resources

Business information system



91

Government policies

Traffic confrastructure

US Dollars/barrel

Source: VIRAC, World Bank


Oil price action World crude oil, 2011 - 2017


92

Impact on environmental pollution

Source: VIRAC, World Resources Institute


Structure by source of CO emission to the environment


93

The challenge coming from integration

Market dominance of imported cars

The transfer of the production and assembly of cars to Thailand

4. Driving forces


94

4. Driving forces

Content

95

Prospect of automobile consumption in Vietnam

Demand for automobile consumption in Vietnam continues to grow relatively when compared with other markets in the region.

Roadmap for tax reduction:

Infrastructure - traffic is improving:

Economic development

4. Driving forces


96

Size and quality of population

Low interest rates, stability and growth in consumer lending are driving

forces for auto industry growth.

Source: VIRAC, NFSC

Source: VIRAC, GSO

VND trillion

4. Driving forces

Outstanding consumer loans, 2012 - 2016

Population pyramid, 2016


97

5. Planning and forecast

Content

98

2020 2025 Năm 2030

Production output of domestic

vehicles (pcs)Growth rate (%/year)

2020 2025 2030 to 2015 2016-2020 2021-2030

Target Unit 2020 2030

Decision No. 1211 / QD-TTg approving the master plan for development of

Vietnam's automobile industry to 2020 with a vision to 2030.

Expected volume of domestic assembled vehicles

compared to total domestic demand (%)

Estimated vehicle output and growth rate of the yearExpected to export complete vehicles and spare parts

Source: VIRAC, Decision No.: 1211/QD-TTg

Source: VIRAC, Decision No.: 1211/QD-TTgSource: VIRAC, Decision No.: 1211/QD-TTg


5.1 Planning


99

2020 2025 2030Supporting industry objectives:

Oriented development

Rate of localization by value over years

Source: VIRAC, Decision No.: 1211/QD-TTg


5.1 Planning


100


5.1 Planning


101

2018 is about to mark technological transforms and regional market

changes.


5.2 Forecast – 5.2.1 World forecast


102

By the end of 2017, car makers was competitively offering cheap prices and high-end vehicles are expected to bloom in 2018.

Truck and specialized vehicles segments seize huge potentials to develop in 2018 thanks to:


5.2 Forecast – 5.2.2 Domestic forecast


103

Domestic vehicles have the advantage and are expected to rise again

Source: VIRAC

Thousand Units


5.2 Forecast – 5.2.2 Domestic forecast

Forecast of car consumption in Vietnam, 2016 - 2020f


104

6. Enterprise

Content

Vina mazda Kia motors Peugeuot

Mazda 3 Kia morning Peugeot 208

Mazda 6 Kia Cerato Peugeot 408

Mazda Cx5 Kia Sorento

Peugeot

3008

THACO - Truck THACO - Bus

Truck Couch

Some typical models of Truong Hai AutoOverview of Truong Hai Auto

6. Enterprise

105


6. Enterprise

Some financial indicators of Truong Hai Auto

Indicator (VND billion) 2014 2015 2016

Evaluating Truong Hai Auto

Business strategy of Truong Hai Auto Sales and share of Truong Hai Auto, 2013 – 9M/2017

Currently, business strategy of Truong Hai is applied separately for different

product lines:

From 2013 to 2016, THACO set a record when sales and share consecutively

increased,

Source: VIRAC

Source: VIRAC

Unit

97


6. Enterprise

The strategy of Toyota Vietnam

Overview of Toyota and its subsidiary in Vietnam Typical models

In the first nine months of 2017, TMV sold 43,832 vehicles; market

share remained at 23.7%.

Sales (volume) and market share of Toyota Vietnam 2013 – 9M/2017

Camry Corolla

Fortuner Innova

Vios Hiace

* Sales does not include Lexus

Source: VIRAC

Unit

98


6. Enterprise

Overview of Lexus and its subsidiaries in Vietnam Typical models

Lexus is the exclusive luxury car brand of Toyota Motor Corporation was

born in 1989.

Sales (output) of Lexus Vietnam2014 – 9M/2017

Lexus LS 460L Lexus LX 570

Lexus GS 350 Lexus GX 460

Lexus ES 350 Lexus RX 350

Strategy of Lexus Vietnam

In the Vietnamese market, some Lexus vehicles have not yet achieved sales

as expected,

Source: VIRAC

Unit

101


6. Enterprise

Overview of Ford and its subsidiary in Vietnam Typical models

Sales and share of Ford in the first nine months of 2017 continued to

stabilize at 11.6%, ranking third in the association VAMA.

Sales (volume) and market share of Ford Vietnam 2013 – 9M/2017

Ecosport Transit

Fiesta Ranger

Competitive strategy

Investment strategy on people

Ford Vietnam’s strategy

Source: VIRAC

Unit

99


6. Enterprise

Overview of Honda and its subsidiary in Vietnam Typical models

In the first nine months of 2017, Honda sold 9,756 units, representing

5.3% of the total market share.

Sales (volume) and market share of Honda Vietnam2013 – 9M/2017

City CR-V

Civic Accord

Honda Vietnam's strategy

One of the business strategies of Honda Motor Vietnam is to provide products

with advanced engine technology, durability and fuel economy,

Source: VIRAC

Unit

100


6. Enterprise

Overview of Mercedes-Benz and its subsidiary in Vietnam Typical models

In the first nine months of 2017, sales of Mercedes-Benz Vietnam

increased impressively (21% compared with the same period in 2016,

reaching 4,940 vehicles)

Sales (volume) of Mercedes - Benz Vietnam2013 – 9M/2017

C – Class A – Class

E – Class GLE/GLS

S – Class V - Class

Strategy of Mercedes - Benz Vietnam

Mercedes-Benz Vietnam strives to take care of its customers.

Source: VIRAC

Unit

102


6. Enterprise

Overview of Hino Motors and its subsidiary in Vietnam Typical models

For the first nine months of 2017, Hino sales reached 2,786 Units, down 1%

from the same period of 2016 and the market share was only 1.5%

Sales (volume) and market share of Hino Motor Vietnam 2013 – 9M/2017

Light truck Medium truck

Heavy truck

The strategy of Hino Motors Vietnam

Competing by quality:

Marketing strategy:

Growth prospects:

Source: VIRAC

Unit

103


6. Enterprise

Overview of Isuzu and its subsidiary in Vietnam Typical models

In the first nine months of 2017, Isuzu showed a comeback with 5,126

units, up 5% from the same period of 2016, with a market share of 2.8%.

Sales (volume) and market share of Isuzu Vietnam 2013 – 9M/2017

N-series F-series

Q-series Đầu kéo

Isuzu Vietnam’s strategy

Isuzu's brand strategy and customer acquisition service:

Source: VIRAC

Unit

104


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vietnam automobile industry report q2/2018€¦ · according to the nielsen consumer confidence...

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