Car sales in Vietnam witnessed a significant downturn in December 2024, with total sales declining by 30.81 percent month-on-month to 27,403 units. Passenger cars, the largest segment, fell sharply by 33.04 percent compared to November, with 20,457 units sold, according to data from the Vietnam Automobile Manufacturers’ Association.
Year-to-date sales for 2024 stood at 295,979 units, reflecting a 7 percent increase year-on-year. Despite the monthly decline, buses demonstrated the most substantial annual growth at 31 percent, totalling 7,748 units sold in 2024. Trucks also showed resilience with a year-on-year increase of 4 percent, while hybrid vehicles remained flat with no significant change from 2023 figures.
Vietnam’s car market has experienced significant growth over the past decade, driven by rising incomes, urbanisation, and an expanding middle class. As one of Southeast Asia’s fastest-growing economies, the demand for cars in Vietnam has steadily increased, particularly in urban areas like Hanoi and Ho Chi Minh City, where rising living standards and improved infrastructure have contributed to greater vehicle ownership.
The car market in Vietnam is diverse, with a wide range of domestic and foreign brands competing for market share. Key players include international automakers such as Toyota, Honda, Kia, and Ford, which have established production and assembly facilities in the country. These companies have successfully catered to the growing demand for both economy and mid-range cars. In addition, VinFast, a local manufacturer, has made waves in the market, producing both internal combustion engine vehicles and electric vehicles (EVs). VinFast’s entry has marked a milestone in Vietnam’s automotive industry, making it a significant player not only in the local market but also with ambitions for international expansion.
The market has also seen a growing interest in electric vehicles (EVs) as part of a broader trend toward sustainability. The Vietnamese government has introduced policies and incentives to promote EV adoption, including reduced taxes and subsidies for EV buyers. With global shifts toward cleaner, more sustainable transportation, the Vietnamese market is expected to continue seeing a rise in demand for electric vehicles, driven by both domestic manufacturers like VinFast and international EV brands.
Challenges in the Vietnamese car market include high taxes and import duties, which make cars more expensive for consumers. Additionally, the country still faces issues with limited public transportation infrastructure, although the government is working on improving urban mobility with projects such as metro lines in major cities. Despite these challenges, the Vietnamese car market remains dynamic, with steady growth and an increasing interest in both traditional and electric vehicles.
Looking ahead, the Vietnamese car market is expected to continue expanding, supported by favourable economic conditions, government policies encouraging the adoption of greener technologies, and rising demand for higher-quality vehicles. As the market matures, competition among local and international players will likely intensify, contributing to innovation and further development of the automotive industry.
See also: Automotive Industry in Vietnam