Vietnamese Vehicles Market in October 2024 grew for the 7th month in a row, with 41,236 new sales (+31.2%). YTD figures stood at 291,827 (+10.9%). Vinfast climbed 3 spots into 3rd, growing 64.3% in year-on-year volume.
Market Trend and Outlook
Vietnam’s GDP growth is projected to strengthen to 6.0% in 2024 and 6.5% in 2025, driven by improving global demand, rising tourist numbers, and substantial public investment. Domestic demand will be supported by increasing real household incomes and expansionary monetary and fiscal policies. Inflation is expected to rise to 3.9% in 2024 before easing to 3.2% in 2025. While the central bank maintains an accommodative stance, potential risks include high private debt levels and rising logistics costs, particularly due to geopolitical tensions.
The Vietnamese vehicle market benefited from the positive economic environment, growing for the 7th month in a row in October 2024 and posting 42,236 new sales (+31.2%). YTD figures at 291,827 were up 10.9% compared to the prior year.
Looking at cumulative data up to October 2024 brand-wise, Toyota secured leadership with 49,236 sales (+15.8%), in front of Hyundai at 41,885 (+1.4%), VinFast -up 3 spots- at 41,866 (+64.3%) and Mitsubishi -up 3 spots- at 33,244 sales (37.93%).
Ford dropped 1 spot and ranked in 5th 33,090 registrations (+12%), followed by Kia -down 3 spots- at 32,089 (-14.8%), Mazda -down 2 spots- at 25,208 (-9%), and Honda with 21,260 sales (+23.5%).
Suzuki ranked in 9th position with 8,724 (-24.3%), followed by Peugeot closing the Top 10 with 2,533 sales (+22%).
Looking at the top models, the VinFast VF 5 Plus became the best seller rising 157.5% in year-on-year volume and climbing 12 spots, followed by last year’s leader, the Mitsubishi Xpander (+3.4%).
Medium-Term Market Trend
In Vietnam the primary vehicle for individual mobility in the motorcycles and not the car. Over 3 million 2-Wheelers are sold each year, while 4-wheeler sales never achieved the half million.
In the last decade, the car and light commercial market boomed, from less than 100K in 2010 to nearly 400K ten years after. The momentum slowed down in 2021 due to the covid driven measures, with volume falling 0.4%. Although the market did slow down, it was not hit as roughly as other ASEAN countries.
The birth of a local manufacturer – VinFast – fully dedicated to the electric vehicles (both 4 and 2 wheelers) is a stimulus for the traditional manufacturers controlling the market (Japanese and Koreans) and the incentives for EVs from the government will help to boost the electrification process, which is seen faster in Vietnam than in the rest of the region.
The outlook is positive for the next years, driven by expected growth in the pro capita income and by the modernization of road infrastructures. The market is, in fact, already showing positive signs of growth, with sales surging 21.5% to 465,741 in 2022.
In 2023 the Vietnamese vehicle market fell down, with YTD sales reaching 698,256 units (-19.5%).
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models.
