The car market has experienced many fluctuations in recent years, specifically from 2018 to 2021, we have stepped into the Covid pandemic affecting the global economy and changing people’s consumer habits. Let’s hear expert’s opinions about this and their prediction of the automobile industry’s development orientation from 2022.
The Automotive Technology has changed in recent years
Outlook for Automotive Technology
According to the statistics of 2018-2021, car sales volume was on an upward trend in 2018 with 276,800 units and increased to 305,600 units in 2019. This trend means that people’s demand for car ownership is increasing. People are accepting and tending to use cars as a means of daily transportation.
In 2020, the trend of buying cars was a bit volatile. Car sales fall. That was understandable because the economy was greatly affected by the Covid pandemic, the demand for movement was limited. People tended to save more, so purchasing power decreased, but the number was still high at 284,000 units in 2020 and 277,200 units in 2021.
The economic situation is going down due to the Pandemic, but Vietnam still surpassed the Philippines to become the 4th largest auto market in the region in 2020. In 2021, the government will apply a 50% reduction in registration fees for assembled cars and domestically produced cars. Thus leading to a wave of car buying in the last months of 2021.
Great opportunities in the Automotive Industry in Vietnam
Vietnam joins the FTA
Vietnam joins the FTA, opening up opportunities for people to own a high-quality car at a cheaper price than before, because the import tax will be reduced to 0%. Middle-income families may also have the opportunity to own a car at a cheaper price. This was almost impossible before because the tax applied to imported cars was very high, which pushed up the price of cars.
Support from the State
The state issued regulations to reduce 50% of the registration fee from December 2021 to May 2022. At the same time, it also extended tax payment for domestically produced cars. The Ministry of Industry and Trade promotes the auto industry in many ways, including cooperation with Toyota to improve the localization rate. It is an opportunity for domestic automobile manufacturing companies to develop and also an opportunity for consumers to decide to buy a car during this time.
Increased demand for car ownership
After the pandemic, the economy gradually recovered, production and business demand was boosted. Owning a car to serve in the manufacturing business is an increased trend. At the same time, production and business activities that was delayed in 2021 will be implemented by the enterprises in 2022. In which, transportation and tourism activities will develop strongly. The demand for buying cars is forecasted to increase in the near future.
The living standard of Vietnamese people is increasing. Modernized lifestyle, urbanization is accelerated. The concept of car ownership has become popular in people’s lives. That drives purchases in the auto business and demand for auto-related services will grow in the coming years.
Through analyzing the above information, experts believe that in 2022 and the following years, the auto industry will develop rapidly.
This is also a fertile ground for Automotive Technology students in the next 5 years. Register now to study Automotive Technology at the College of Science and Technology.
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Duration: 2.5 years
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Training program: Align the reality of the business, 70% practice – 30% theory
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The workshop is fully equipped with machines and equipment models
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The school cooperates with businesses, factories, and garages to ensure output for students
CHOOSE COLLEGE OF SCIENCE AND TECHNOLOGY – SUCCESSFUL CRAFTSMANSHIP – FUTURE AREA
Registration Link: https://tuyensinh.caodangbachkhoa.com.vn/
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