2018 Frankfurt (Ho Chi Minh City) International Auto Parts and After-Sales Service Exhibition

Exhibition Overview

Exhibition Name: Automechanika Ho Chi Minh 2018

                Automechanika Ho Chi Minh 2017

Exhibition Time: April 25-27, 2018

Exhibition Venue: Saigon Exhibition & Convention Center (SECC), Ho Chi Minh City, Vietnam                  

Exhibition Frequency: Annual

Organizer: Messe Frankfurt (HK) Ltd.   

Exhibition Introduction

Automechanika Ho Chi Minh has received strong support from the Vietnamese Ministry of Industry and Transport, becoming one of the most professional events in Vietnam's automotive and auto parts sector. Vietnamese media hail it as the most influential automotive exhibition in Vietnam currently. This exhibition is not only a business transaction platform but also provides exhibitors with an opportunity to gain in-depth understanding of the Vietnamese auto parts market environment, while helping them establish efficient operating models in the Vietnamese market.

Previous Exhibition Review: In 2017, there were 350 exhibitors from countries such as Japan, South Korea, Thailand, Malaysia, Indonesia, Taiwan, China, Dubai, India, the United States, and Europe. The exhibition area was 10,000 square meters, attracting 9,000 professional visitors from 52 countries and regions.

Market Analysis

1. Current State of the Vietnamese Market

Vietnam is a country with a population of up to 87 million. Currently, there are 3.8 million motorcycles and 1.2 million cars nationwide. According to Vietnam's development plan, the average annual growth rate of the total number of automobiles in Vietnam between 2005 and 2010 was 16%. It is estimated that by 2030, the total number of automobiles nationwide will reach 3 million units, indicating significant room for market growth.

Currently, Vietnam has approximately 20 domestic automobile manufacturing and assembly enterprises and 60 automobile parts processing factories. Most domestic enterprises import chassis from China, South Korea, and CIS countries for assembly in Vietnam, primarily assembling buses and trucks.

2. Vietnam's Auto and Motorcycle Parts Heavily Rely on Imports from China

Currently, the localization rate of Vietnam's auto and motorcycle parts production capacity does not exceed 20%, with most parts relying on imports. China remains the largest supplier of auto and motorcycle parts imports to Vietnam, accounting for approximately 72% of the total import value in this sector. The booming demand in the automobile and motorcycle market has also driven huge demand in the auto and motorcycle accessories market. In recent years, Chinese auto and motorcycle accessories have gained a significant market share in Vietnam due to their high quality, low prices, and convenient regional logistics advantages.

3. Government Policies Promote Chinese Enterprises' Entry into Vietnam

Vietnamese media reported that the Vietnamese government reduced tariffs on original automobiles starting from January 1, 2006, lifted the ban on old car imports from May 1, 2006, and fully implemented "zero" tariffs for bilateral trade in 2015, putting unprecedented pressure on Vietnamese automobile manufacturers. Industry insiders believe that since Chinese cars can enter the most difficult markets in Europe and America with their price advantages and stylish designs, and Vietnam is adjacent to China with attractive Chinese car prices, it is only a matter of time before a large number of Chinese cars enter the Vietnamese market.

4. Insufficient Component Supply in Vietnam

Due to the weak foundation of Vietnam's component manufacturing industry, many Japanese companies that set up factories in Vietnam cannot directly purchase the necessary components for production locally. Vietnam has 210 enterprises producing automotive components, but these companies can only produce relatively simple components such as glass, batteries, and plastic products. Previously, Samsung from South Korea also sought mobile phone accessory suppliers in Vietnam, but found that most local Vietnamese component manufacturers did not meet the requirements.

5. Vietnam Pledges to Reduce Car Import Tax to Zero by 2018

China Daily Online, August 28 (Xinhua) - According to Vietnamese media reports, based on Vietnam's recently released "Vietnam Automobile Development Strategy and Planning," the Vietnamese authorities have pledged that, according to the proposed roadmap, by 2018, original cars imported from ASEAN countries will be subject to a zero tariff rate, cars with 10 to 24 seats will be subject to the lowest special consumption tax rate, and environmentally friendly cars will enjoy preferential tariff rates.

Mr. Nguyen Manh Quan, Director of the Heavy Industry Department, Ministry of Industry and Trade of Vietnam, stated that during the 2020-2035 period, the total domestic automobile production in Vietnam is expected to increase from 228,000 units to over 1.5 million units; domestically produced and assembled cars can meet 67% to 78% of domestic demand; and products from the automotive supporting industry can meet over 65% of the demand for spare parts in the domestic automobile assembly industry. Vietnam also plans to produce and assemble 90,000 automobiles for export during this period.

6. Chinese Cars Have Strong Advantages in the Vietnamese Market

(1) Quality assurance for Chinese cars. After years of self-effort and the introduction of advanced global technologies, the quality of Chinese cars has greatly improved, with their reliability, durability, energy consumption, configuration, and other indicators being no less than those of Japanese and Korean products.

(2) Suitable prices. Vietnam is not currently wealthy, and Japanese and Korean cars sold in the market are relatively expensive. Most Chinese cars are 20%-30% cheaper than comparable Japanese and Korean cars, which aligns with the mainstream consumption in the Vietnamese market.

(3) Convenient mutual cooperation. China and Vietnam share a border, making both sea and land transport very convenient. At the Friendship Pass border crossing, we often see batches of car chassis, engines, and auto parts clearing customs for export; procedures can be completed the same day, and goods can be transported to Hanoi. Exhibition Scope

1. Automobile-Related Exhibition Categories

Tires and Wheels: Various tires and wheels for automobiles

Parts and Components: Drivetrain, Chassis, Body, Standard parts, Car interiors, Alternative energy, Charging accessories, Remanufactured parts;

Electronics and Systems: Electrical machinery, Vehicle lighting, Power supply systems, Intelligent driving systems/vehicle safety systems, Comfort electronics;

Accessories and Customizing: Decoration and styling, Vehicle accessories, Custom modifications, Interior and exterior modifications, Communication and entertainment, Restoration of special vehicles and equipment, Customizing tires, Rims, Wheels, Tire pressure monitoring systems, Trailers, Small multi-functional trailers and their accessories;

Repair and Maintenance: Workshop equipment and tools, Body repair equipment, Painting and corrosion protection, Body maintenance and repair, Towing service, Accident assistance, Mobile workshops, Waste disposal and recycling, Workshop and dealership equipment and management, Lubricants and oils;

Management and digital operation solutions: design and construction of repair stations/car dealerships/gas stations, finance, franchising concepts, claims management and control, dealer management systems, repair station management, vocational and advanced training, repair station and car dealership marketing, internet vehicle trading platforms and physical car trading markets, automobile trade and industry cluster promotion, mobility concept car washing, maintenance and refurbishment: car washing, car maintenance, vehicle refurbishment, charging facilities and gas stations.

2. Motorcycle-related exhibits

Tires and wheels:

Motorcycle types: off-road dune buggies, American motorcycles, custom-made motorcycles, off-road motorcycles, American cruisers, trail bikes, electric bicycles, street bikes, sidecars, racing bikes, scooters.

Motorcycle parts and components: oil, tires, chains, filters, batteries, engine shafts, steering dampers, coils and capacitors, spark plugs, carburetors and injection systems, fairings, footrests and footboards, three-wheeled motorcycle bodies, gearboxes, rims, cylinders, alternators, headlights and signal lights, piston rings, front and rear forks, fork tubes, brakes, clutch systems, brake pads, seals and gaskets, connecting rod systems, ignition systems, turn signals, handlebars, springs, engines, auxiliary engines and related parts, hubs, bearings, windshields, fenders, bumpers, brake pads, starter pedals and gear levers, pistons, lamp brackets, radiators, spokes, seats, fuel tanks, rollers, ball bearings, shock absorbers, fuel tank caps, chassis, transmission systems, exhaust pipes, fuel lines, brake lines

Motorcycle accessories: anti-fog helmet products, rear racks, connecting rods, shoes and boots, helmets, reflective systems, speedometers, seat covers,

decals, luggage racks, lighting equipment, glasses, mufflers, motorcycle covers, clothing and protective equipment, gloves repair and maintenance: paint products, test benches, racing fuel, battery chargers, oils and chemicals, polishing, cleaners and rust preventatives

Electronics and systems: safety and alarm systems, intercom systems, horns and sound alarm devices service groups: industry organizations, news publishing organizations, colleges and universities, financial companies, software companies, insurance, clubs, chambers of commerce, service industries, training and certification services

Contact Information

Shandong Zhenhe International Exhibition Co., Ltd.

Address: Room 905, Building 1, Xiangtai Plaza, No. 129, Yingxiongshan Road, Shizhong District, Jinan City, Shandong Province (250002)

Contact Person: Zheng Xiao, Han Chi, Miao Shujin, Duan Zhenzhen, Zhou Chao, Wei Rui

Tel: 0531-82726908 61314322 86971926 86985005 82770583 86085400

Website: www.brightway.com.cn