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Category: Automotive

Retail News Asia is committed to providing both local and global retailers with the latest Auto and Car news throughout the Asian market. This on a daily base.

  • Domestic motorcycle market remains challenging in 2024

    Domestic motorcycle market remains challenging in 2024

    Motorbike sales volumes in the first quarter of 2024 reached 603,745 units, down 4.88% from the previous quarter and 11.5% lower year-on-year.

    This sales level is equivalent to around 15 years ago, indicating a prolonged gloomy period for the industry.

    Vietnam remains the world’s leading motorbike market, with over two-thirds of adults owning two-wheeled vehicles.

    However, motorbike sales have been declining and manufacturers need to be nimble in order to respond to new demands, according to industry insiders.

    The Vietnam Association of Motorcycle Manufacturers (VAMM), which includes major brands like Honda, Yamaha, Suzuki, Piaggio and SYM, dominates the market.

    Motorcycle sales in Vietnam peaked at 3.25 million vehicles in 2019, but declined to 2.71 million in 2020 due to the Covid-19 pandemic.

    Last year, the decline in VAMM’s motorbike sales had slowed, but only reached 2.51 million vehicles, about 16% lower than the previous year. All major segments, including scooters and manual motorcycles, saw significant declines, with the under 50cc category decreasing by 28.4%.

  • Auto distributor Tasco to begin assembling

    Auto distributor Tasco to begin assembling

    Tasco, a distributor for 14 auto brands, plans to branch into car assembling, and will launch its first products next year.

    At the annual general meeting last week, its management told shareholders about the plan without disclosing what brand or brands it plans to assemble.

    A person familiar with the matter told VnExpress that Tasco’s plan “might not necessarily be to assemble passenger cars.”

    Pham Van Dung, chairman of subsidiary Tasco Auto, said the company wants to work with a global top 10 auto producer.

    The partner is already selling “successfully” in Vietnam, he said.

    The products would be sold not only in Vietnam but also in markets with which it has free trade agreements, he said.

    Tasco Auto used to be Savico Holdings until its acquisition by Tasco in 2022.

    It has 84 dealerships nationwide that distribute Toyota, Ford, Honda, Mitsubishi, Volvo and other vehicles.

  • VinFast recalls over 2,000 EVs

    VinFast recalls over 2,000 EVs

    VinFast is recalling 2,097 electric vehicles to fix various technical issues.

    Some of the VF e34 and VF 5 Plus cars produced between September 2023 and April 2024 face the threat of bolts securing the upper cover of the high-voltage battery becoming loose, leading to a potential reduction in the water resistance.

    This issue affects 23 VF e34 and 131 VF 5 Plus units. VinFast will inspect and tighten the bolts and replace the high-voltage battery if needed.

    VF 6 Plus vehicles produced between March 18 and April 9 this year have a potential defect that could cause the brake fluid hose connectors to crack, leading to possible brake fluid leakage.If the brake fluid drops below the minimum threshold, a warning will appear on the control screen, and the braking system’s effectiveness will be reduced. The number of p otentially affected vehicles is 47.<

    VinFast will inspect and replace the brake fluid hoses in the affected vehicles free of charge.

    In VF 8 and VF 9 (Eco and Plus) cars manufactured between August 2022 and March 2024, incorrect airbag types might have been installed in certain places.

    After approximately 10,000 kilometers of use, an airbag warning and inspection request may appear on the screen.

    If the airbags are not of the correct type, they may not deploy in the event of a severe collision under certain conditions.

    In all, 1,134 VF 8 Eco and VF 8 Plus vehicles and 762 VF 9 Eco and VF 9 Plus vehicles are being recalled.

    VinFast has reported these issues to the Vietnam Register and will individually notify vehicle owners, asking them to bring their vehicles to authorized service centers.

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  • Honda recalls 221 of its most expensive motorcycles for faulty fuel pump

    Honda recalls 221 of its most expensive motorcycles for faulty fuel pump

    Honda Vietnam is recalling 221 of its two most expensive motorcycles, the CBR1000RR Fireblade and Gold Wing, for faulty fuel pumps that could cause their engine to stall.

    The 74 CBR1000RRs and 147 Gold Wings were manufactured in Japan between September 2017 and March 2023 and imported to Vietnam.

    Due to changes in production methods, the faulty fuel pump impeller could get deformed, preventing fuel from flowing into the engine, Honda Vietnam said.

    This could make starting the engine difficult and potentially cause the vehicle to shut down, it said.

    While no accidents have been reported in Vietnam due to the defect, the company advised owners to bring their vehicles to authorized dealers to get them fixed, a task that should take around an hour.

    The recall started on March 29 and will go on for two years.

    CBR1000RRs were once previously recalled in April 2022 for faulty oil cooler pipes that could overheat and melt, causing oil leakages.

    The CBR1000RR is currently priced at VND1.05 billion (US$41,400) and the Gold Wing at VND1.23 billion ($48,500).

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  • BMW narrows gap with market leader Mercedes in Vietnam’s luxury car scene

    BMW narrows gap with market leader Mercedes in Vietnam’s luxury car scene

    Mercedes, the best-selling luxury auto brand in Vietnam for years, is seeing BMW close the gap rapidly following the start of local production.

    Mercedes sold 3,416 units last year, a 57% decline from 2022 but still the highest for the seven luxury brands in Vietnam.

    BMW jumped from fourth place in 2022 to second last year with sales of 2,023, a 108% increase. It was the only brand to achieve an increase in sales.

    In third place was Lexus with 1,532 units, a marginal drop from 2022. Volvo, Audi, Porsche, and Land Rover followed it. Together the seven sold 8,638 vehicles, down 36%.

    Mercedes used to outsell BMW 6-8:1, but the gap has narrowed to around 1.5 times. Its share of the luxury auto market has dropped from 60% in 2022 to 40% while BMW’s has jumped from 7% to 23%.

    The rise is attributed to BMW’s manufacture in Vietnam by Thaco. The first BMWs made in Vietnam were sold at the end of 2022, and now four models are sold at cheaper prices than imported units.

    Among the models are Series 3 and X3, which are considered the main competitors to Mercedes’s C-class and GLC.

    Brad Kelly, CEO of Mercedes Vietnam, said that the race between Mercedes and BMW has become more even and similar to their competition globally. But others in the luxury segment have also been gearing up.

    In March Audi opened its third showroom in HCMC and fifth in the country. It is in a residential area and includes a quick maintenance facility.

    This is its new type of urban showroom, and it plans to open more in Vietnam to reach 18 by 2032. Managing director of Audi Vietnam, Ferry Enders, expects luxury vehicle sales to surpass the auto industry average.

    Volvo Vietnam earlier this year opened its fourth showroom. Land Rover opened a showroom in Hanoi last year and plans to open one in HCMC latest by next year. Mercedes now has 17 showrooms and BMW, 15.

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  • Car imports see recovery in March

    Car imports see recovery in March

    Import turnover of completely built-up (CBU) cars in March increased by 55.4% in volume and 41.4% in value compared to the previous month.

    A preliminary report from the General Statistics Office (GSO) said that Vietnam imported about 15,000 CBU cars in March with a value of US$287 million.

    However, this import decreased slightly by 1.7% in volume and 18.8% in value compared to the figures in March 2023.

    The strong recovery in CBU car import in March was due to the car import in February falling sharply when businesses stopped all import-export activities during the seven-day Tet (Lunar New Year) holiday.

    Those numbers in February reached 9,650 units in volume and $203 million in value.

    Thus, CBU car import turnover in March had a strong recovery despite the market situation not showing clear positive signals.

    Positive signals from the economic recovery are bringing back higher expectations of domestic car demand.

    The CBU car import is expected to continuously recover in the second quarter of 2024.

    After the Lunar New Year holiday in February, the Vietnamese auto market welcomed many new car models, mainly imported cars.

    GSO also reported that the total import of CBU cars in the first three months of 2024 was estimated at 31,452 units worth $632 million, down 25.1% in volume and 31.7% in value year on year.

    This was still a very low turnover compared to 2023, before the market fell into a period of deep decline in demand.

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  • Royal Enfield Sets Up Dutch Hub For EU Expansion

    Royal Enfield Sets Up Dutch Hub For EU Expansion

    Royal Enfield has set up a new hub in the Netherlands and has plans to open another warehouse in Europe, either in France or Germany, with an eye on strengthening its supply chain across Europe. According to reports, Royal Enfield’s parent company Eicher Motors Ltd has already set up the Dutch arm to reduce its dependency on the UK, after Brexit made it more difficult to move parts to mainland Europe. The brand is also in talks to establish a warehouse, likely to be either in France or Germany, to speed up the supply of products like spare parts and branded merchandise.

    Eicher Motors has invested 500,000 Euros (approximately Rs. 4.5 crore) into the new unit, called Royal Enfield Europe BV. According to Arun Gopal, Royal Enfield’s international head, who is quoted in a news report, the brand’s business is growing quickly in the EU, and a new warehouse will cut lead times by two weeks from 90 days. Royal Enfield plans to start with one warehouse for non-motorcycle products and is in talks with logistics specialists in the EU to manage its range. Germany and France are potential countries for the new warehouse, although no decision has been made as yet.

    In recent years, Royal Enfield has been increasingly pushing across global markets, with exports being a prime focus of its business strategy. In 2023, the company inched closer to the 1 million sales mark, and over the last decade the company has performed above expectations. Although the bulk of Royal Enfield’s motorcycle sales still come from the domestic market, exports have been steadily increasing but still constitute less than 10 percent of overall sales.

    With the new 350 cc J-series platform, the 650 Twins, the Himalayan 411, and the current Himalayan 450, Royal Enfield has streamlined its entire product line-up in recent years to be global products, which will be offered on sale around the world. Clearly, with its origins in the UK, the European market may offer more potential for the brand’s growth and better supply chain and footprint presence may be a step in the right direction.

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  • The Apple Car could have changed the face of the auto industry

    The Apple Car could have changed the face of the auto industry

    Last month, Apple calmly went around to the back of company headquarters in Cupertino carrying the self-driving Apple Car files and put a bullet through the project. Apple spent a decade and a ton of money on what would have turned out to be an amazing game-changing vehicle according to the description of what Apple was working on written by Bloomberg’s Mark Gurman in his latest Power On newsletter.

    Gurman said that the design Apple was working on around 2020 was similar to the rounded Canoo Lifestyle Vehicle. This is a van that at the time, looks the same in the front and back so that it always appears that the vehicle is moving forward. Gurman says that the vehicle resembled no other vehicle mass-produced at the time and was designed for full Level 5 autonomous driving.

    While Apple changed the looks of the car’s interior a few times, the look was a minimalist one with seats that looked like those seen in a limo or private jet; the vehicle would accommodate four people. Some versions of the interior featured a big television set in the center to show videos and FaceTime video chats. From the roof of the vehicle, multiple iPad-sized screens were suspended to give passengers access to certain controls. A special air-conditioning system pushed the air along the sides of the interior instead of blowing it right at the passengers’ faces.

    Two previous designs for the Apple Car included the first one which resembled the 1950s Volkswagen microbus; inside Apple, this design was known as the Bread Loaf. The second design for the vehicle looked like the 2017 Volkswagen ID Buzz prototype before VW showed off its concept. The fourth design, the one that looked like the Canoo Lifestyle Vehicle, had CEO Tim Cook and COO Jeff Williams excited.

    But the most recent design also included a less ambitious Level 2 autonomy forcing Apple to add a steering wheel and pedals. The sliding van doors were replaced by gull-wing doors. Nonetheless, it’s all moot at this point anyway and while Apple might have changed the face of the automobile similar to what it did with the smartphone, the company decided to stick to its knitting since the project still had a long way to go and a lot more red ink to spill before it would be ready to be launched.

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  • Motorbike dealerships offer steep discounts in post-Tet sales

    Motorbike dealerships offer steep discounts in post-Tet sales

    Dealerships are slashing the prices of numerous motorbike models to stimulate demand in the quiet post-Tet (Lunar New Year) season.

    Standard Honda Vision models are on sale for VND30 million (US$1,218.2) at some dealerships, down VND1-2 million from before the Tet holiday, which ran from February 8 to 14.

    Notably, all versions of the Honda Winner X have had their prices cut by VND3-5 million to VND31-36 million, nearly 35% lower than their suggested retail price of VND46-50 million.

    The 2023 Yamaha Exciter 155 VVA is currently subject to a VND5 million discount, while the Suzuki Raider and Satria have had their prices reduced by VND3-5 million at some showrooms.

    Dealerships are eager to offer more discount to boost sales and get rid of remaining inventory.

    The steep price cuts are necessary to spur demand as the motorbike market is usually inactive in the first quarter, especially after the Tet holiday.

    The market has also slowed in general as sales of motorbike decreased by 16.21% from 2022 to 2.51 million units last year, according to the Vietnam Association of Motorbike Manufacturers.

    The downtrend continued in January, with Honda Vietnam reporting motorbike sales of 227.560 units, down 0.8% from the previous month.

    Despite the slumping sales, Vietnam is still the second largest motorbike consumer in Southeast Asia, according to data recently published by market intelligence firm MotorCycles Data.

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  • Porsche Studio launches in Singapore

    Porsche Studio launches in Singapore

    German sportscar manufacturer Porsche has opened its Porsche Studio in Singapore intending to provide an improved studio model.

    The new two-story showroom is part of downtown Singapore’s famous Guoco Midtown mixed-use development, near the Bugis heritage zone.

    The venue features a sleek and modern design with Singaporean touches like “breeze block” patterns inspired by historic local architecture and bamboo-like veneers adorned throughout.

    The first floor houses seating areas that can become an intimate fireside discussion atmosphere. On the second floor, more modular spaces can be configured in a variety of ways to accommodate a wide range of activities, including zen-filled yoga classes, high-energy product trainings and presentations, keynote speeches in front of full-length LED walls, and e-sports races held on two in-house simulators.

    “Singapore, renowned for its innovative spirit and entrepreneurial attitude, is the perfect location for this enhanced Porsche Studio,” said Matthias Becker, VP of region overseas and emerging markets at Porsche.

    “With this innovative new format, we aim to test new ideas and ways to interact with our customers and fans, while also offering an unforgettable experience that goes beyond simply selling a car.”

    The new Porsche Studio Singapore also includes a built-in auto lift for moving vehicles around the facility.

    The studio is operated by Porsche Singapore, a joint venture between Porsche Asia Pacific and Eurokars Group established in 2022 to improve customer experiences in the city-state.

  • Vietnam records second largest drop in auto sales across Southeast Asia

    Vietnam records second largest drop in auto sales across Southeast Asia

    Vietnam saw the second sharpest decrease, of 25%, in automobile sales in Southeast Asia last year behind only minuscule market Myanmar.

    According to the ASEAN Automotive Federation (AAF), in the region’s seven main markets, Indonesia, Thailand, Malaysia, the Philippines, Vietnam, Singapore, and Myanmar, 3.35 million vehicles were sold, a 2.1% decline from 2022.

    But the data, compiled from AAF’s members in various countries, does not include sales of Vietnamese firm Hyundai Thanh Cong.

    The leaders, Indonesia and Thailand, saw sales drop by 4% and 8.1%. In Myanmar, automobile sales fell to less than 4,000 in 2023, a decrease of 52.5% compared to 2022.

    The number of cars sold in Vietnam was 369,431, the fifth highest after Indonesia, Malaysia, Thailand, and the Philippines after falling one place from last year. The Philippines went past it in 2023.

    In 2022 Vietnam achieved its highest ever sales of more than 500,000.

    But last year the economic downturn, high bank interest rates and the slump in the real estate and securities markets sent demand for cars plummeting.

    In July the Government halved the automobile registration fee for domestically assembled vehicles, but it failed to revive demand.

    Demand fell in Thailand as banks tightened credit for buying pickup trucks, the most popular segment, according to Thailand Business News.

    Production too fell, but at more than 1.8 million vehicles, Thailand remained the biggest manufacturer in the region.

    Indonesia remained the largest market and also the only country to exceed the million sales mark. Indonesia wants to become an auto production hub, especially for electric vehicles.

    In 2023 it churned out nearly 1.4 million cars, including some of Vietnam’s best-selling vehicles like the Mitsubishi Xpander, which topped the sales chart.

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  • Chinese EV giant BYD to begin Vietnam sales in May

    Chinese EV giant BYD to begin Vietnam sales in May

    The world’s biggest electric vehicle maker, China’s BYD, will set up shop in Hanoi in May.

    It would sell its first cars in the sedan and SUV segments, sources familiar with the matter said.

    Its SUV BYD Atto 3 is among the most sought-after cars globally. It has large demand in Sweden and is the best-selling EV in Thailand.

    It has a 60.48-kilowatt-hour battery that allows travel of up to 480 kilometers.

    Its prices start from US$30,750 in Thailand.

    In Vietnam, BYD cars will be imported as complete units from China.

    The company is building a $504-million plant in Thailand, its biggest market outside China, and expects to start production there this year.

    In future BYD cars can be imported to Vietnam from Thailand to enjoy the zero import tax applicable to Southeast Asian countries.

    BYD, established in 2003, sold 1.62 million electric cars last year, second globally behind Tesla with 1.8 million units, though in the last quarter it outpaced past the U.S. company 526,000 to 484,000.

    Ninety percent of its sales were in China.

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  • VinFast recalls 5,900 EVs for headlight issue

    VinFast recalls 5,900 EVs for headlight issue

    VinFast is recalling 5,912 VF 5 Plus electric vehicles manufactured last year to fix the issue of headlights turning off when the left turn signal is switched on.

    The company said the headlights in some VF 5 Plus cars, the smallest in its EV lineup, could turn off when the car is traveling at 50-55 kilometers per hour and the headlights are in auto mode.

    This is due to a hardware issue in the circuit board the company received from its supplier, it said.

    The supplier would replace the necessary parts for free, and the task will take around 40 minutes, it added.

    There have been no incidents due to the issue so far, but the company is recalling all vehicles produced between March and December last year.

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  • Toyota recalls nearly 26,000 cars to tighten shock absorber nuts

    Toyota recalls nearly 26,000 cars to tighten shock absorber nuts

    Toyota Vietnam has announced the recall of 25,971 Avanza Veloz, and Yaris Cross cars to fix faulty front shock absorber nuts.

    The nuts were not tightened sufficiently due to design issues, and could become loose and cause noises, even fall off.

    The affected Toyota Avanza and Veloz models were manufactured between Jan. 7 and Oct. 28, 2022, in Indonesia, or assembled in Vietnam between Nov. 14, 2022 and Aug. 14, 2023.

    A total of 25,523 Avanza and Veloz cars will be recalled. Also recalled are 448 Yaris Cross cars made in Indonesia between June 2 and Aug. 30, 2023.

    There have been no accidents caused by the fault, the Japanese company said.

    It also said 6,368 Avanza, Veloz and Raize cars manufactured in Indonesia between Sept. 12 and Dec. 7, 2022, have brake pads that are at risk of failing sooner than designed.

    Their front fork dust covers were damaged during assembly, and this could cause dust and water to enter the covers, causing the pads to rust and wear out.

    The affected cars will be repaired free of charge at authorized Toyota dealers. The recall began on Jan. 19 and will last until the repairs are completed.

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  • Electrified vehicles rising to trendy choice in Vietnam

    Electrified vehicles rising to trendy choice in Vietnam

    Vietnamese users are becoming more familiar with hybrid and pure electric vehicles because numerous well-known brands have expanded to this category.

    Truong Huy, a technical expert for an electric vehicle software outsourcing company in Ho Chi Minh City, was one of the earliest to come to the Electrified Vehicle Exhibition at Yen So Park, Hanoi, last weekend to learn about the hybrid and pure electric car models.

    “As a person working in technology related to electric vehicles, this exhibition is a good opportunity for me to learn more about the companies,” Huy said while standing next to the chassis of a Hyundai electric car. “Mainly working in software, this is a rare time I have seen a complete hardware platform for an electric vehicle.”

    In the past three years, electric or hybrid cars have gradually become more familiar to Vietnamese customers. But Vietnam has never had an exhibition dedicated to this category, which means few opportunities for Huy and other customers to experience cars from different brands or learn about their software and hardware technologies.

    The Electrified Vehicle Exhibition organized on Jan. 13–14 can be considered the start of events dedicated to fuel-saving and environmentally friendly vehicle lines.

    In previous years, only a small number of electrochemical products were sold on the market, but now it is different.

    In 2020, except for Toyota with the small crossover Corolla Cross with a hybrid engine option, the market did not have a product with a similar or pure electric engine, specifically in the popular segment.

    By 2023, the number of electrochemical products and companies participating in the field has increased, creating a trend big enough to draw customers’ attention.

    The domestic EV segment was led by VinFast in 2023, with an ecosystem ranging from bicycles, motorbikes, cars, and buses. The company has been selling electric cars since 2021 with the VF e34 and has now added VF 5, VF 6, VF 7, VF 8, and VF 9 to the car category alone.

    In addition to VinFast, Hyundai is selling the Ioniq 5 series. Previously, the Korean company launched the Santa Fe hybrid for sale. Its distribution by Thanh Cong Group also hinted at the possibility of the company selling the G80 EV, a pure electric luxury sedan, in the near future.

    Hybrid cars are becoming more diverse with Kicks from Hyundai, CR-Vs from Honda, Sorentos from Kia, and H6s from Haval. Toyota specifically expanded this car segment in Vietnam with the addition of the Altis, Camry, Yaris Cross, Innova Cross, and Alphard.

    Besides Haval, the presence of other Chinese brands in Vietnam, such as Wuling and Haima, helps make the electrified vehicle segment more exciting. Pure electric car options from these brands include the market’s cheapest Wuling Mini EV, or the Haima 7X-E MPV.

    Most of these car models were present at the Electrified Vehicles Exhibition 2024.

    Xuan Huy drove more than 10 km from Ha Dong District to the exhibition to find a second car for his travel in the city. “I went to check all the booths because I do not favor any specific brands. There have been very few occasions when many companies display hybrid or pure electric car products like this.”

    Electrified vehicles are gradually becoming more popular. But many companies believe that customers still need orientation and education about the technology and how to use these products.

    Compared to the technology of internal combustion engine vehicles, which has been familiar to users for hundreds of years, electrified vehicles’s is new.

    “Many people are still concerned about whether electric vehicle technology is suitable for cars that they use every day,” said Son Lam, a representative of TMT Motors, the distributor of the Wuling brand in Vietnam. “Participating in this exhibition is also a way for the company to answer more customers’ concerns about electric vehicles, especially their technology.”

    A Hyundai Thanh Cong representative said that pure electric and hybrid technology is generally still new to the majority of Vietnamese customers. “Disseminating knowledge about electrified vehicles to customers is what the company is doing, this exhibition is one such occasion for us to do that.”

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