Vietnam’s new vehicle market dropped by 25% to 27,403 units in December 2024 from 36,350 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, domestic automaker VinFast, and a growing number of Chinese brands that have entered the market in the last two years.

VAMA’s members reported a sharp drop in sales last month, following strong growth in the previous few months, after the temporary 50% vehicle registration tax discount introduced by the government to stimulate sales expired at the end of November. Vietnam’s vehicle market remains sluggish, despite strong economic growth in the country and aggressive promotional campaigns by dealers.

GDP growth continued to accelerate in the fourth quarter of 2024, to 7.5% year-on-year from 7.4% in the third quarter, according to government data - driven by strong domestic consumption, fixed investment and exports.

Over the full year VAMA’s members reported a 7% increase in combined vehicle sales to 295,979 vehicles compared with a weak 276,377 units in 2023, with passenger vehicle sales increasing by just 3% to 220,295 units while commercial vehicle sales rebounded by 23% to 75,684 units. Including non-VAMA members, overall vehicle sales in Vietnam are estimated to have exceeded 500,000 units in 2024.

Truong Hai (Thaco) Group, the local assembler and distributor of several overseas brands and a major player in the commercial vehicle segment, reported a 7% drop in group sales to 90,989 units last year. This includes a 15% drop in Kia sales to 34,570 units and a 9% decline in Mazda sales to 32,601 units, while sales of Thaco commercial vehicles increased by 13% to 18,251 units.

Toyota’s sales increased by 16% to 66,576 units last year, helped by the relaunch of the Hilux pickup truck. Ford’s sales rose by 10% to 42,175 units, underpinned by strong demand for the Transit and Ranger commercial vehicles, while Mitsubishi’s sales increased by 33% to 41,198 units - lifted by the launch of the XForce SUV at the beginning of last year. Honda followed with 28,267 sales (+19%), while Suzuki delivered 20,262 units (-23%).

VinFast confirmed it sold more than 87,000 vehicles in Vietnam last year, more than double 2023’s volumes and well ahead of its full-year target of 80,000 units. The VF5 small battery electric vehicle (BEV) was its best-selling model last year with 32,000 deliveries, followed by the VF3 with 25,000 units.

Local distributor Tan Chong International said it sold 67,168 Hyundai vehicles in 2024, slightly down from the previous year.