Lao vehicles sales were negative again in the 2018 as in the previous two years, mainly due to the fall of HCVs and the over 50% sales lost by the local producer, Daeham. Toyota dominates with over 40% of market share. The 2019-2025 outlook is positive.
Laos economy grew 6.7% in the 2018 on strong manufacturing and services sectors, likely among the fastest expansions in the region and began 2019 on a strong footing.
Hydroelectric generation should remain a key driver of growth in Q1, while infrastructure projects, such as the Laos–China railway and the building of several hydropower dams, should also propel momentum. That being said, agricultural output, particularly of rice, is likely being hampered by damage caused by flooding last year.
In early February, the government unveiled its National Development Vision for 2021–2025. The plan aspires to steer the country away from natural resource dependency and to bolster the private sector through pro-business reforms and improved access to business capital.
Following the rapid development of the market in the years immediately after the end of dictatorship, in the last three years the Laos vehicles market suffered with declining sales, despite the still fast growing economy.
In the 2018 the total sales were 21.290, down 7.9% from the previous year. Figures include the Heavy Commercial and Bus vehicles (1.739 units) and the Light vehicles (cars + LCVs) which has been 19.551 (-5.8%). Among the light vehicles, the commercial have over 50% of mix with car passenger’s sales just over the 9.000 units.
The market has lost steam despite in the last three years several new brands landed in the market and actually all the top brands are on sales, while not all successfully. In the market there are also several Chinese brand, with Wuling as best seller, with 107 sales in the 2018.
The market leader is Toyota with a huge market share (in light vehicles), over 35%.
The best followers are the local brand Daehan with 17.1% of share and Hyundai with 14.1% of share. Behind, we find Kia, Ford and Mazda.
With near 4k sales in the 2018, the pick up Toyota Hilux is the best selling model in the country.
Tables with sales figures
In the tables below we report sales for top Brands