Vietnam’s new vehicle market continued to surge in November 2024, by 50% to 39,608 units from 26,439 units a year earlier, according to wholesale data released by the Vietnam Automotive Manufacturers Association (VAMA). The data do not include sales by Mercedes-Benz, Hyundai, Tesla, Nissan and a growing number of Chinese brands that have entered the market in the last two years, nor does it include sales by domestic electric vehicle manufacturer VinFast.
VAMA’s members have reported a sharp rebound in vehicle deliveries to their dealers in the last three months, albeit from weak year-earlier volumes, after the government temporarily cut its registration tax on locally-assembled vehicles by 50% at the beginning of September. Dealers also launched aggressive promotional campaigns, including heavy discounting, to entice buyers.
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The tax discount expired at the end of November, with local manufacturers concerned that the recent market recovery may be short-lived. Vietnam’s overall economic growth continued to accelerate in the third quarter, by 7.4% year-on-year from 7.1% in the second quarter, driven by a 16% surge in exports. Domestic consumption expanded by 7%, with strong tourism arrivals driving service sector growth, while industrial output expanded by over 9%.
VAMA’s member data shows the market expanded by 12% to 268,576 units in the first eleven months of 2024 from 240,027 units a year earlier, with passenger vehicle sales increasing by 8% to 199,913 units while commercial vehicle sales rebounded by 23% to 68,663 units.
Truong Hai (Thaco) Group, the local assembler and distributor of several overseas brands and a major player in the commercial vehicle segment, reported a 3% drop in group sales to 84,031 units year-to-date. This includes a 10% drop in Kia sales to 32,518 units and a 5% decline in Mazda sales to 29,755 units, while sales of Thaco commercial vehicles increased by 14% to 16,851 units.
Toyota’s eleven-month volumes increased by 20% to 57,934 units, with sales of the Hilux pickup truck stepped up in recent months. Ford’s sales rose by 16% to 38,683 units, underpinned by the popular Ranger, Everest and Transit models, while Mitsubishi’s sales increased by 40% to 37,390 units – lifted by the launch of the XForce SUV at the beginning of the year. Honda followed with 25,893 sales (+31%), while Suzuki delivered 9,601 units (-21%).
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By GlobalDataVinFast’s sales in Vietnam are reported to have more than doubled to around 62,000 units in the first eleven months of 2024, while the company recently confirmed that it remains on track to meet its full-year global sales target of 80,000 units. The latest data released by Hyundai’s local distributor show a total of 48,546 Hyundai-branded vehicles were sold in the country in the first ten months of the year.
The Vietnamese government confirmed it will keep the registration tax for battery electric vehicles (BEVs) at 0% until 2026, while the special consumption tax will remain between 1% and 3%, as part of a broader package of incentives aimed at attracting BEV sector investment into the country— including preferential import duties on components and charging equipment.
