Hyundai Motor beat Toyota,’#1′ in annual sales for the first time in Vietnam last year

Input 2021.02.07 11:43

Hyundai Motor (005380)Last year, surpassed Japan’s Toyota, became the first annual sales company in the Vietnamese passenger car market.

According to the Vietnam Automobile Manufacturers Association and Hyundai Motor Company’s Vietnam subsidiary on the 7th, Hyundai Motor sold 72,834 passenger cars (including small commercial vehicles) in Vietnam last year, ranking first with 21.7% market share. It was estimated that it sold 2,142 more units than Toyota, the second largest market share (21.1%).

Despite a 4% decline in local market demand from the previous year due to the new coronavirus infection (Corona 19), Hyundai Motor’s sales volume increased 7.2% from 2019, overtaking Toyota, which decreased by 10.8% from last year. Kia sold 50,258 units last year, an increase of 25.9% from the previous year. Kia’s market share was 15.7%, ranking third.

The significant increase in sales of Hyundai Motors and Kia is due to a 50% reduction in vehicle registration tax for local assembly-produced vehicles, which the Vietnamese government implemented since June last year. Hyundai’s sales in December of last year surged 79.9% from December of 2019, and Kia’s sales in December of last year also increased by 111.3%.

In 2011, Hyundai Motor Company entered Vietnam’s Tyne Cong Group by reassembling parts and consigning production (CKD). In March 2017, it established a production joint venture (HTMV) with the Tyne Cong Group to increase production capacity. This factory produces 7 types of Grand i10, Accent, Avante (AD), Kona, Tucson, Santa Fe, and Porter. In January 2019, in order to strengthen the sales and service network, a business agreement (MOU) was signed with Tainkong Group to establish a sales joint venture.

By model, Hyundai Accent ranked second, followed by Santa Fe at 9th and Tucson at 10th, with three of them in the’Top 10′. Kia Serato took 6th place.

Vietnam’s automobile market is growing rapidly from 226,000 units in 2017 to 334,000 units last year. Hyundai Motor Company raised its annual output to 70,000 units by fully operating HTMV’s 1st plant, which was established with the Tin Cong Group in Ninh Binh Province, northern Vietnam, with 8 hours and 3 shifts. When the second plant, which is scheduled to start in earnest at the beginning of this year, is completed, the annual output will increase to 150,000 units.

Hyundai Motor Company is considering expanding its local production model to continue increasing its market share.