Vietnam Jan-July car sales more than double
HANOI, Aug 7 (Reuters) - Car sales in Vietnam have more than doubled so far this year, with Toyota Motor Corp (7203.T) retaining its lead as the country's top seller, the Vietnam Automobile Manufacturers Association said on Thursday.
Sixteen car makers sold a combined 77,067 units during the first seven months ending July, up 120 percent from the same period last year, the association said in its monthly report.
Sales last month rose nearly one-third to 8,458 units from 6,474 units in July 2007, but were lower than 9,749 units sold this June, partly reflecting a slowdown in Vietnam's economy.
The country's economic growth slowed in the first half to an estimated 6.5 percent compared with the same period of 2007, when the annual growth was 7.91 percent.
Dealers said demand for cars in the remaining months of this year would slow after the government said it will triple registration fees to 15 percent from Aug 14, and following a 36 percent rise in fuel prices from July 21.
Toyota and Honda Motor Co Ltd (7267.T) also have raised their prices, citing higher raw material prices globally and soaring inflation in Vietnam.
In the first seven months, Toyota retained its lead among the 12 manufacturers backed by foreign firms, selling 14,941 cars, up 50 percent from the same period last year.
The government planned further import tax hikes to help reduce worsening road congestion, which dealers said have prompted purchases to surge before the new tax rate comes in.
Vietnam has already raised tariffs on imported cars to 83 percent from 70 percent previously.
Car imports in July fell to 3,000 fully assembled units from 4,500 units in June, while the total vehicles imported since the start of this year still surged 290 percent from the same period last year to 43,000 units, government figures show.
Ford Motor Co (F.N), Honda Motor Co Ltd (7267.T), Mitsubishi Motors Corp (7211.T), Mitsubishi Co and Proton (PROT.KL), Suzuki Motor Corp (7269.T) and Nissho Iwai, part of Sojitz Holdings Corp (2768.T) are among foreign firms which assemble cars in Vietnam. (Reporting by Ho Binh Minh; Editing by Kim Coghill)
