Vietnam’s car market in downturn, electric vehicles still leading in sales

The VinFast VF 8 is the top-selling car in Vietnam in May. Photo: B?i H?.

The most recent report from the Vietnam Automobile Manufacturers’ Association (VAMA) reveals that in May, the entire Vietnamese automobile market sold a total of 20,726 vehicles, an 8% decrease compared to April and a 53% drop in sales compared to the same period last year.

Compared to the previous reporting period, sales of passenger cars declined by 8%. Commercial vehicle sales also decreased by 6% while the consumption of specialized vehicles dropped by a significant 16%.

Electric cars maintain their lead

Sales reports from VinFast indicate that in May, the electric car company delivered a total of 1,274 VF 8 vehicles to customers in Vietnam. As such, VinFast electric cars have once again taken the top position in terms of sales in the entire market, following the VF e34’s success in the April report.

In May, only 4 names achieved sales of over 1,000 vehicles in the entire Vietnamese market, including VinFast VF 8, Mitsubishi Xpander, Honda City, and Toyota Corolla Cross.

VinFast electric cars continue to dominate the Vietnamese automotive market in terms of sales
Top 5 best-selling vehicles in the Vietnamese automobile market in May (Data: VAMA, TC Group, VinFast)
Brand	VinFast VF 8	Mitsubishi Xpander	Honda City	Toyota Corolla Cross	VinFast VF e34
Sales in May	vehicles	1274	1171	1035	1014	960

Among them, Mitsubishi’s small MPV achieved sales of 1,171 vehicles and maintained its position as the second best-selling car in the overall market. Honda City, for the second consecutive time, topped the B-segment sedan segment with sales of 1,035 vehicles in May, while Toyota Corolla Cross showed strong sales in the urban SUV segment with 1,014 vehicles in the same period.

Despite a nearly 60% decrease in sales in May, VinFast VF e34 still recorded 960 vehicles sold, securing a spot in the top 5 best-selling cars in Vietnam. Meanwhile, Ford Ranger experienced a nearly 35% sales decline, delivering only 932 vehicles (including 150 Ranger Raptors) and occupying the 6th spot in terms of sales for the month.

Consequently, the Vietnamese automobile market in 2023 will no longer have any models consistently selling over 1,000 vehicles per month. Previously, only the Hyundai Accent achieved this feat in the first 4 months of the year.

As for the Toyota Vios, it has shown no positive signs since the introduction of the facelift version to Vietnamese customers. Sales of the best-selling B-segment sedan in Vietnam in 2022 only reached 586 vehicles, widening the gap with competitors like the Hyundai Accent or Honda City.

Sales decline but with less severity

Among the detailed sales figures for vehicles in the Vietnamese automobile market, 36 names experienced a sales decrease compared to April. However, at the same time, 27 models either maintained or increased their sales figures.

Thanks to this, the overall sales of the Vietnamese automobile market only dropped by 8% compared to the previous month, a significant improvement from the 25% decline recorded in April.

The Vietnamese automobile market is still struggling to recover
Performance of the Vietnamese automobile market from December 2022 to May (Data: VAMA)
Brand	December 2022	January 2023	February 2023	March 2023	April 2023	May 2023
	vehicles	35301	17314	23040	30038	22409	20726

However, the rapid increase in car purchases during the preferential fee period last year resulted in the Vietnamese automobile market’s cumulative sales still being 36% lower than the same period in 2022.

Domestically assembled cars achieved sales of 62,096 vehicles, a 43% decrease compared to the same period last year. Imported vehicles, on the other hand, only achieved sales of 51,431 vehicles in the first 5 months of the year, down 23% compared to the same period in 2022.

It is likely that sales in the Vietnamese automobile market will gradually improve starting from June, thanks to the 50% preferential fee policy implemented by the Government, which may officially take effect next month.

The incentives related to the operational costs of cars are expected to stimulate domestic demand, bolster the market’s purchasing power, and improve sales figures, similar to previous implementation periods.

Slow-selling cars: A mix of newcomers and familiar faces

In May, the surprising sales report highlighted the sale of only one Suzuki Ertiga AT in the Central region.

Previously, when the hybrid version of this MPV was introduced to Vietnamese consumers, regular sales of the Suzuki Ertiga dropped below 5 vehicles per month starting from August 2022 before falling to zero sales in the first 4 months of 2023.

Meanwhile, in its first month of delivery to Vietnamese customers, the Honda Civic Type R only recorded modest sales of 2 vehicles. However, similar to some other high-priced and distinctive segment cars, the low consumption of the Honda Civic Type R can be explained.

The Honda Civic Type R achieved sales of 2 vehicles in its first month of delivery to Vietnamese customers. Photo: Anh Xuân.

In contrast, the VinFast VF 5 Plus achieved sales of 332 vehicles in May, its second month of delivery to Vietnamese customers, equivalent to a growth rate of over 822% compared to the previous reporting period.

Thanks to this, VinFast’s small electric SUV has become the fastest-growing model in terms of sales in May, a time when the Vietnamese automobile market has shown signs of recovery.