New vehicle sales in Vietnam increased by over  20% to 9,849 units in May, from 8,202 units in the same month last year, according to data released by the Vietnam Automotive Manufacturers Association (VAMA).

Cumulative five month sales jumped by more than 26% to 44,133 units, from 34,896 units previously, driven by particularly strong demand for passenger cars – with low interest rates helping to improve the availability of consumer finance.

Sales of passenger cars, SUVs and MPVs increased by over 30% to 25,865 units in the first five months of the year, compared with 19,866 units a year earlier. Commercial vehicle sales increased by over 19% to 17,275 units from 14,486 units previously.

Toyota led the overall market in the first five months of the year with sales rising by close to 10% 13,230 units. Truong Hai (Thaco), which assembles Kias and various other commercial vehicles, reported a 21% sales rise to 11,429 units.

Third placed Ford saw its sales rise by 51% to 4,292 units, reflecting strong demand for the Transit minibus/van and the Ranger pickup truck. 

Mazda reported a near threefold sales increase to 2,933 over the five month period, reflecting particularly brisk sales of the 2 and 3 passenger cars and CX5 SUVs.

Honda sales also increased close to threefold to 2,731 units, with the City compact passenger car and the CRV SUV generating most of its sales.