New vehicle sales in Vietnam were slightly higher year on year at 21,996 units in June 2024 from 21,893 a year earlier, according to wholesale data released by the Vietnam Automotive Manufacturers Association (VAMA).
The data did not include sales by Mercedes-Benz, Hyundai, Tesla and Nissan and a growing number of Chinese brands that have entered the market in the last two years, as well as domestic electric vehicle manufacturer VinFast.
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The market looked to have stabilised at current low levels, after 18months of almost incessant decline. Heavy discounting by dealers had helped to support the market, but overall demand remained weak and inventories were high. Economic growth accelerated to 6.9% year on year-on the second quarter from 5.9% in the first quarter, driven mainly by strong export growth and a pickup in manufacturing and service sector activity.
VAMA’s data showed overall vehicle sales in the first half of 2024 fell 6% to 115,651 units from 122.626 a year earlier, including a 9% decline in passenger vehicle sales to 83,167 units while commercial vehicle sales were 5% higher at 32,484 units.
Truong Hai (Thaco) group reported an 11% drop in group sales to 37,212 units year to date (YTD). This includes a 19% drop in Kia sales to 14,007 units and a 10% fall in Mazda sales to 12,679 units while sales of Thaco commercial vehicles increased 2% to 8,326 units.
Toyota first half sales were down by 16% at 22,338 units YTD in the continued absence of the Hiace and Hilux light commercial vehicle models. Ford continued to benefit from this, with sales slightly higher at 17,651 units underpinned by the popular Ranger, Everest and Transit. Honda sales increased by 10% to 10,481 units; Mitsubishi 14,622 units (+14%) and Suzuki 6,359 units (-18%).
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By GlobalDataSeparate data released by the company showed Hyundai was the best-selling auto brand in Vietnam in the first five months of 2024 with 19,344 deliveries.
VinFast said it sold 9,700 vehicles globally in the first quarter of 2024 and reconfirmed its target to sell 100,000 units in 2024 after the company launched sales in other markets in the region including Indonesia and the Middle East. It also began construction of a factory in India earlier this year.
The Vietnamese government previously said it would keep the registration tax for battery electric vehicles (BEVs) at 0% until 2026 while the special consumption tax will be kept at between 1% and 3% as part of a broader package of government incentives to attract more BEV investment into the country, including cuts in import duties on components and charging equipment.
