Laos 2015. Market accelerates driven by commercial vehicles

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Laos Vehicles Market in 2015 took off driven by demand for commercial vehicles. The new brand Daehan was the best seller thanks to a local made low-cost line-up specialized in CVs. Toyota Hilux was the best model.

Economic Outlook

Laos’ economy has tallied robust growth in recent years, outperforming many of its regional peers. The economy has been propelled by strong inflows of foreign investment, particularly into hydro power and transportation projects.

On the political front, the government concluded its five-year congress on 22 January and unveiled the country’s newest leaders. Bounnhang Vorachith, was chosen as the General Secretary of the Lao People’s Revolutionary Party, replacing Choummaly Sayasone. However, little change in economic or political policy is expected.

Another year of healthy growth is expected to be sustained by strong investment in 2016, although downside risks from China’s slowdown remain.

Market Outlook

Data are now available for all vehicles including car passenger’s and commercial vehicles and the picture is more comprehensive than in the past. Indeed, in a previous report on the first half 2015 data, we reported a decline in the car passenger’s data that left we all surprised. Indeed, in the same period, commercial segment was booming.

In the current economic conditions, with still one of lowest in the World pro capita income, people can not yet afford the cost of a new car while the economic development – probably in double-digit during the 2015 – sustain the purchase of commercial vehicles, mainly small van, min-bus and pick ups.

These vehicles are also used for personal purpose at least for the thousand little firms active in the country.

Second half of the 2015 was really strong for both cars and commercial segment with the full year figures establishing a new all time record. Total sales had been 38.098, up 158% from the 2014 record. Car passenger’s grew at 17.394 (+70.3%) while commercial vehicles at 20.704, up a wonderful 350%.

Started up by a business idea of a local conglomerate, quoted in the Stock Exchange and already involved in the automotive business as local importer for Hyundai vehicles, the new brand Daehan in the 2015 have already achieved the leadership with 5.978 sales.

DAEHAN is specialized in small and medium vans and truck and plan to export in the entire ASEAN region starting from the 2016.

The second best brand was Toyota with 3.920 units followed by Hyundai Trucks with 3.259 units.

While the Chery QQ was the top seller among cars, the best-selling vehicles was the Toyota Hilux with over 5.000 sales followed by many models made by Daehan.

Tables with sales figures

In the tables below we report sales for the top brands

 

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