5 highlights of Vietnam's auto market 2020 4

5 highlights of Vietnam's auto market 2020 4

In the year of weak purchasing power due to the Covid-19 epidemic, a series of car manufacturers returned, many new products appeared for the first time, and Chinese cars created controversy.

2020 became one of the bleakest years for the Vietnamese auto market.

VnExpress reviews 5 main highlights of the domestic auto market in 2020:

The Covid-19 epidemic casts a shadow on the auto industry

From the second half of March to early April, when the whole country entered the peak of epidemic prevention, a series of assembly plants and dealerships of car manufacturers in Vietnam closed and temporarily suspended operations.

A Toyota showroom on Tran Dang Ninh Street (Cau Giay, Hanoi) closed on the afternoon of March 28.

Covid-19 was mentioned the most in a tumultuous year for the Vietnamese car industry.

Faced with the difficult situation caused by the epidemic, although import businesses disagree because they think it is discriminatory, the Government still issued Decree 70/2020 to support 50% of registration fees for manufactured and assembled vehicles.

But the epidemic is not only in Vietnam, the supply of components from abroad is affected, causing the number of domestically assembled cars shipped to the factory to not meet demand, creating a shortage of goods.

Accumulated to November, total market sales (data from the Vietnam Automobile Manufacturers Association – VAMA) decreased by 13% compared to the same period in 2019. While TC Motor, the company that sells Hyundai cars and is the brand that sells

Brands return to the market

The gloomy market situation does not prevent many brands from renewing themselves or reappearing under other distributors.

With MG, Renault, Jeep, these are names that have appeared in Vietnam but their business was not successful.

5 highlights of Vietnam's auto market 2020

Two Arkana models imported from Russia at the Renault dealership in District 7, Ho Chi Minh City.

Two other car companies, Nissan and Rolls-Royce, are not in the category of `returning` after many years of absence, but the time they shake hands with a new distributor to open a more positive business period is also considered a re-export.

Nissan ended its relationship with Tan Chong (Malaysia), the distributor of MG in Vietnam, and cooperated with the domestic company, VAD.

New cars were released massively

Although many business plans are affected by the Covid-19 epidemic, companies are still `careful` to launch new cars as a way to warm up their image and increase competitiveness against rivals.

5 highlights of Vietnam's auto market 2020

Corolla Cross during VnExpress’s evaluation in Hanoi.

Never in a year like 2020 has Toyota refreshed so many product ranges.

The 2020 car market also welcomed rookies sold for the first time in Vietnam such as Mitsubishi Xpander Cross, Kia Seltos, Peugeot 2008, Suzuki XL7, Renault Arkana, Mercedes GLB, Land Rover Defender, Porsche Taycan… Best-selling car models

Chinese car phenomenon

Brilliance V7, Beijing X7, BAIC X55 with abundant equipment and low prices compared to Japanese and Korean cars in the same segment created a huge fever in Vietnam.

5 highlights of Vietnam's auto market 2020

Beijing X7 at an internal launch event in Vinh Phuc.

Modern appearance, low price but lots of technology are the main attractions of Chinese cars.

It created a fever of discussion, but quickly after that, the phenomenon of Chinese cars gradually disappeared.

Cars from the mainland are still mainly imported by a few northern companies, selling many models together.

Persistent controversy over vehicle defects

In 2020, there were many vehicle recalls due to errors in Takata airbags, Denso fuel pumps, control software… with tens of thousands of vehicles.

Besides the recalls, vehicle customers and the company have repeatedly failed to find common ground when vehicle quality problems arise.

5 highlights of Vietnam's auto market 2020

A group of Ford car owners with oil leaking engines gathered in Hanoi on March 1.

The most persistent controversy in the car industry in 2020 is the phenomenon of oil leaks on Ford Ranger, Everest, and Ranger Raptor cars equipped with 2.0 turbocharged engines, imported from Thailand.

The incident lasted from March to June and was resolved by Ford Vietnam under the witness of representatives of the Department of Competition and Consumer Protection (Ministry of Industry and Trade).

Another car company that also has oil leaks in the engine is Suzuki on the XL7 but the amount is less than the Ford car.

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