Brian Jeffrey
Vietnam’s automotive sector concluded 2024 on a positive note, experiencing notable growth despite facing various challenges. This progress was aided by government support, dealership incentives, and VinFast’s strategic product offerings.
As reported by the Vietnam Automobile Manufacturers Association (VAMA), sales in December 2024 totaled 31,598 vehicles, representing a 29% decrease from November and an 18% drop from December 2023. These figures were anticipated due to a spike in consumer interest during the months of September to November, driven by lower registration costs for locally produced and assembled autos.
Even in a tough December, sales figures still exceeded those of many other months in 2024. Sales of domestic vehicles reached 12,862 units in December, down 49% from November, while imported vehicles fell slightly by 2%, totaling 18,736 units.
In total, sales for the entire year reached 340,142 units, marking a 12.6% increase from 2023. This achievement underscores the ongoing efforts of VAMA constituents to overcome obstacles and enhance consumer confidence.
Topping the market, Toyota sold over 68,000 vehicles in 2024, rising from 59,207 in the previous year. Mitsubishi also performed well, with sales of 41,198 units, an impressive 33.4% increase. Honda reported nearly 19% growth with 28,267 vehicles sold, while Ford achieved a record high of 42,175 vehicles, up 10% year-over-year.
TC Motor, which distributes Hyundai cars in Vietnam and is not affiliated with VAMA, experienced a slight decrease of 0.4%, with 67,168 units sold. In contrast, VinFast, the homegrown electric vehicle producer, reached impressive levels with over 87,000 vehicles sold in 2024. Sales of the VinFast VF 3 and VF 5 alone exceeded 57,000 units.
Overall, Vietnam’s automotive market achieved a notable capacity of 500,000 vehicles in 2024, nearing the high of 509,141 units from 2022.
The trend towards electrification and eco-friendly vehicles continued to grow in 2024. Over 10,000 hybrid cars were sold, primarily from Japanese manufacturers like Toyota, Honda, and Suzuki, as per VAMA data.
VinFast maintained its lead in the fully electric segment, while Chinese brands such as BYD, GAC Aion, Wuling, and MG entered the market, increasing the variety of affordable choices available to consumers.
The first half of 2024 presented its challenges, yet the year-end figures highlighted the resilience and flexibility of Vietnam’s car makers.
Experts forecast stable growth for the market in 2025, though significant advancements may be constrained.
Challenges persist, especially if manufacturers struggle to maintain incentives and promotions to drive demand.
