The year 2024 was a year of turbulence for the Vietnamese automotive market due to economic downturns and consumers tightening their spending. Here are the 7 most notable events in the domestic automotive market in the past year.
Automotive market recovery
In the first half of 2024, the Vietnamese automotive market faced several challenges due to economic downturns. However, in the second half of the year, the market gradually recovered due to increased car purchases and the government’s support policy of a 50% reduction in registration fees for domestically produced and assembled cars. As a result, the total number of cars sold in the market in 2024 reached 427,458 units, a 19% growth compared to 2023. Compared to 2022, car sales in Vietnam only decreased slightly by about 1%. This is a positive signal for the domestic automotive market and sets the stage for growth in 2025.
Reduction in registration fees for domestically produced and assembled cars
On August 29, 2024, the government issued Decree No. 109/2024/ND-CP regulating registration fee rates for cars, trailers or semi-trailers pulled by cars, and similar vehicles produced and assembled domestically. Accordingly, from September 1 to November 30, 2024, the registration fee rate for domestically produced and assembled cars will be 50% of the rate specified in Decree No. 10/2022/ND-CP.
This is the fourth consecutive year that domestically produced and assembled cars have enjoyed this policy. However, the implementation period for this policy is halved compared to previous adjustments (six months).
This policy is based on the reality that the total car market sales in the first three months of 2024 decreased sharply. As expected, the registration fee support policy has helped reduce car ownership costs, stimulating consumption and providing financial support to people and businesses, and creating a momentum for the recovery of the domestic car production and assembly industry.
VinFast ranks first in market share
In previous years, the brands that dominated the Vietnamese automotive market were usually from Japan and South Korea, such as Toyota, Hyundai, Kia, and Mazda. However, in 2024, VinFast turned the tables by becoming the automotive brand with the largest market share in Vietnam.
Specifically, in 2024, VinFast delivered a total of more than 87,000 vehicles to Vietnamese customers, a growth of up to 149.6% compared to 2023, far exceeding the global vehicle delivery target. This result was achieved thanks to two key products, including the VF 5 with sales of 32,000 units in 2024 and the VF 3 (25,000 units).
VinFast is currently the brand with the largest market share in the Vietnamese automotive market.
Of course, it cannot be denied that VinFast’s number one market share in Vietnam is largely thanks to the number of electric vehicles delivered to taxi service companies. In 2025, with VinFast selling four models of the Green line, which are designed for transport business in the Vietnamese market, the company’s sales are expected to continue to boom.
Meanwhile, Hyundai ranked second in the Vietnamese market in terms of sales, with 67,450 vehicles sold, a slight decrease of 0.4% compared to 2023. If only passenger cars are considered, Hyundai sold fewer vehicles than its rival Toyota.
Toyota ranked third in the overall market. In 2024, Toyota sold 66,576 vehicles to Vietnamese customers (excluding Lexus), a growth of 15.9% compared to 2023.
Following are the brands Ford (42,175 vehicles, up 10%), Mitsubishi (41,198 vehicles, up 33%), Kia (34,570 vehicles, down 15.2%), Mazda (32,601 vehicles, down 9%), and Honda (28,267 vehicles, up 18.7%).
Wave of Chinese cars
One of the highlights of the Vietnamese automotive market in 2024 was the entry of a series of Chinese car brands. Just in the past year, the Vietnamese automotive market welcomed newcomers from China, such as BYD, GAC, Omoda & Jaeco, and Aion.
2024 was a blooming year for Chinese cars in Vietnam.
Thus, there are now more than 10 Chinese automotive brands selling vehicles in Vietnam. In addition to the brands mentioned above, there are also MG, Wuling, Haval, Lynk & Co, Haima, Hongqi, and Beijing. This year, the Vietnamese car market is expected to welcome new Chinese automotive brands such as Zeeker, Dongfeng, and Geely.
Chinese cars currently sold in Vietnam are quite diverse in terms of brands, models, segments, and prices. These models are priced from over 200 million VND (Wuling Hongguang Mini EV) to over 2 billion VND (GAC M8). In addition, Chinese cars sold in Vietnam also span various segments, from mini cars, SUVs, sedans to MPVs with gasoline, hybrid, or pure electric engines.
However, Chinese car models still face several obstacles in the Vietnamese market, such as unfamiliar brands, consumer prejudices, and unattractive prices. Not to mention that Chinese automotive brands sell electric vehicles in Vietnam but do not invest in public charging station infrastructure.
Brands compete to reduce car prices
As mentioned above, the Vietnamese automotive market went through a difficult period with sluggish sales in the first few months of 2024. This situation caused brands to “step up their game” by reducing car prices themselves. In 2024, a series of brands reduced their car prices, including Toyota, Hyundai, Honda, and Ford.
In addition, brands and dealers actively implemented promotional programs such as registration fee support, cash discounts, or free accessory packages to attract domestic customers. The situation of “bundling” sales hardly occurred in Vietnam last year, except for some models that were in short supply, such as the Toyota Land Cruiser or Land Cruiser Prado.
Green car trend
In line with the global trend, the Vietnamese automotive market is also becoming more environmentally friendly. In addition to electric vehicles from brands such as VinFast, BYD, or Wuling, hybrid vehicles are also booming in the Vietnamese market. There are currently about 70 pure electric and hybrid models available in the country.
For the first time, electric vehicles topped the market in terms of sales, namely the VinFast VF 5 and VF 3 duo. Meanwhile, hybrid models from brands such as Toyota and Honda also performed impressively. The best-selling model was the Toyota Innova Cross, with sales of 2,461 units. In second place was the Honda CR-V with 1,808 units, accounting for 29% of the model’s total sales. The remaining three models in the top 5 were the Toyota Corolla Cross (1,602 units), Suzuki XL7 Hybrid (1,315 units), and Toyota Yaris Cross (879 units).
Return of the VMS exhibition
After a hiatus in 2023, the Vietnam Motor Show (VMS) returned in 2024. Held in Ho Chi Minh City in October 2024, the VMS exhibition featured a total of 19 automotive and motorcycle brands, along with nearly 300 booths from auxiliary industries. The automotive brands participating in the VMS 2024 included Toyota, Honda, Isuzu, Mitsubishi, Skoda, Subaru, Suzuki, GAC, MG, and BYD. Three brands, Volkswagen, Ford, and Volvo, quietly withdrew from the exhibition before the event.
The new Toyota Camry with a hybrid engine option was one of the highlights of the VMS 2024.
In addition to the nine car brands mentioned, the VMS 2024 also featured two-wheeler brands, including SYM, Yamaha, Honda, and UM Motocycles. UM Motocycles is an American-Colombian brand specializing in motorcycles and large-displacement motorcycles.
VinFast Delivers Over 20,000 Cars in December 2024, Setting an Unprecedented Record
By the end of 2024, VinFast had sold a total of over 87,000 electric vehicles in Vietnam, surpassing its global delivery target. This impressive feat solidified the company’s position as a leading player in the country’s rapidly growing electric car market. With a diverse range of models, from sleek sedans to spacious SUVs, VinFast captivated Vietnamese drivers seeking environmentally conscious and technologically advanced transportation options. The company’s success during this period showcased its strong market presence and highlighted the appeal of its innovative, sustainable vehicles to local consumers.
“VinGroup Offers a Generous Support Package of Up to 70 Million VND for Car Buyers in Hanoi”
As part of VinGroup’s “For a Green Hanoi” campaign, we are urging the community to join hands and take action to combat air pollution in our beloved capital city. With a shared vision of a greener and more sustainable future, let’s raise awareness and work together to make a positive impact on Hanoi’s environment.
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In 2022, the government introduced a decree offering a 0% first registration fee for electric cars for a period of three years, starting from March 1, 2022.
VinFast: Powering Ahead with an Ambitious Electric Vehicle Revolution
VinFast delivered over 20,000 vehicles in December 2024, an unprecedented feat in Vietnam’s automotive history. This impressive milestone brought their total annual deliveries for the Vietnamese market to a remarkable 87,000 units, solidifying their position as a leading automotive force in the country.
What Auto Brand Will Be the Best-Selling in 2024?
In 2024, VinFast emerged as the best-selling automotive brand in Vietnam, delivering an impressive 87,000 electric vehicles to customers across the country.
