The Vietnamese automobile market experienced a challenging 2024, marked by economic struggles and increased competition. However, a strong recovery in the final months, supported by government stimulus policies, new model launches, and advancements in electrification, enabled the auto market to close the year on a high note.
The year ended with total vehicle sales nearing 500,000 units, a 12.6% increase over 2023. This rebound came after a rocky start to the year, with sluggish sales during the first half as economic difficulties curbed consumer spending on high-cost items like cars. By August, the market had recorded only modest growth, with 188,997 vehicles sold—a mere 2.4% rise compared to 2023.
The turnaround was largely driven by a short-term government policy reducing registration fees by 50% for three months, which spurred a surge in sales. In the final four months of the year, 151,144 vehicles were sold, accounting for 80% of the sales recorded in the first eight months.
After a one-year hiatus, the Vietnam Motor Show returned, despite the withdrawal of major brands like Ford, Mercedes-Benz, Lexus, and Audi. The event welcomed new automakers, including motorcycle and scooter manufacturers, offering visitors a diverse experience. Automakers leveraged the platform to launch new models and promotional campaigns, which contributed to the market’s recovery in the latter part of the year.
Chinese car brands re-entered the Vietnamese market in 2024 with a more strategic approach, focusing on competitive pricing, effective market positioning, and strong local partnerships. Eight Chinese brands debuted, with five—BYD, GAC, Aion, Omoda, and Jaecoo—launching their first vehicles. This brought the total number of Chinese brands in Vietnam to 11, surpassing Japanese competitors. Projections indicate three to four more Chinese brands will enter the market in 2025, further expanding options for Vietnamese consumers.
While Vietnam’s electric vehicle (EV) market faces hurdles such as high costs and limited charging infrastructure, local automaker VinFast has taken bold steps to address these challenges. The company shifted its focus to affordable EVs tailored for both private and commercial use, launching the VinFast VF 5 in April 2023 and the VinFast VF 3 in August 2024.
The VF 3 became a bestseller, with over 25,000 units sold in five months, while the VF 5 recorded 32,000 sales for the year. VinFast delivered more than 87,000 EVs in 2024, surpassing Toyota and Hyundai to become Vietnam’s best-selling automaker. To solidify its market position, VinFast introduced four new models in its Green series for commercial use, coupled with a free charging policy for customers, setting the stage for continued growth in 2025.
With the influx of competitive Chinese brands and the rise of local EV makers like VinFast, Vietnam’s automotive market is poised for further growth and transformation this year.
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