Lao Vehicle Market Forecast To Grow This Year
Source: Vientiane Times
The vehicle market in Laos is likely to accelerate in 2019 as the government has improved its trade promotion policy and car manufacturers are offering incentives to boost sales.
The demand for cars was weak in recent years due to reduced purchasing power, local daily Vientiane Times on Tuesday quoted an analysis as saying that many Lao people already owned cars while slower economic growth and the suspension of some development projects were among the factors that resulted in a dip in demand.
In 2019 the demand is increasing, especially for small and medium-sized cars which people prefer because they are inexpensive and use less fuel. However, the luxury car market will continue to be affected by the “sluggish economic growth and the poor condition of the country’s roads,” said the report.
“Many people don’t want to buy such cars for their daily commute,” organizer of the Vientiane Motor Show 2019 Phonechan Phaengsouvanh said to the daily.
The Vientiane Motor Show 2019 is taking into account the fact that people tend to have more purchasing power at the start and end of the year. “The growth of the vehicle market will contribute to the overall growth of the economy and related businesses in Laos,” said Phonechan.
Laos currently imports several brands of cars from neighboring countries while some are assembled within Laos.
According to Lao authorities’ figures, the number of vehicles in Laos increased by 8.17 percent in 2015 compared to the previous year, up from 1,577,184 to 1,717,504 vehicles including 1,326,868 motorcycles, 337,449 cars, and 53,187 trucks.
The capital of Vientiane recorded the largest number of vehicles at 721,882, followed by central province of Savannakhet (273,279) and Champassak province in the south (145,289).