Vietnam bucks trend as Asean car sales declined in August

Oxford, UK -- Car sales in the Asean trading area in August were 201,000 units. This is a rise of 6% compared with the same month last year.

Looking at the year-to-date numbers, sales were 1.6m units across the trading block. That is according to LMC Automotive, which supplied the figures.

Vietnam was the only nation in the trading bloc to see an increase in sales. They rose by 8.0% in August 2019, compared with August 2018.

'A buoyant economy and higher demand for imports' drove demand, said LMC Automotive. Vietnamese year-to-date sales were 194 ,000 units in August 2019 This is up by 36.0% compared with the same month last year.
But, the consultants have a warning for the year as a whole. 'Rising global uncertainty and the widening US-Vietnam trade deficit led us to cut the Vietnamese sales outlook to 370,000.' LMC Automotive predicts that the country could buy around 389,000 units in 2020. 

Indonesian sales fell by 13.0% in August 2019, compared with the same month 2018. The weak economy in Indonesia is suffering from 'sluggish exports and private investment,' said the consultants. The second-hand car market is 'booming.' Total sales in 2019 should be about 897,000 units this year

Meanwhile, sales in Malaysia shrank by 16.0% in August 2019, compared with August 2018.
 

Demand in August 2018 was distorted as consumers rushed to buy vehicles during a three-month tax holiday between June and August 2018. Demand in August this year is more usual and so there is steep 26% year on year drop.

Looking at the year-to-date, sales in Indonesia are at 363 ,000 units. This is a decline of 4.0% compared with August 2018

Sales in Thailand fell by 8.0% in August 2019, compared with August 2018. This is probably because of consumers waiting for new models. At the same time rural consumers may be more wary of purchases as the country has suffered the twin blights of drought and flooding this year.

Year-to-date sales in the country were 366 ,000 units by the end of August. This is up by 3.0% compared with the same month last year.

In August sales in the Philippines retreated by 6.0% in August 2019, compared with August 2018. The Chinese Ghost Festival which fell in August this year disrupted demand said, LMC Automotive.

Considering progress so far this year sales in the Philippines total 185 ,000 units to this point. This is up by 1.0% compared with August 2018.

LMC Automotive said that it expects 'the ASEAN market to close 2019 with 3.28m units sold.' That would be down 3% on 2018. The consultants are forecasting 3% growth to 3.36m units in 2020.