The End of Domestic Car Production Incentives: “Domestic Auto Output Declines as Soon as Registration Fee Incentives End”

The latest report from the General Statistics Office reveals that in the last month of 2024, domestic car production in Vietnam was estimated at 47,000 units, a significant decrease from the 52,400 cars that rolled off the assembly lines in November 2024.

This indicates that the growth streak in Vietnam’s domestic car manufacturing and assembly came to an end as the fourth round of registration fee incentives for domestically assembled cars concluded. Carmakers might have anticipated the market slowdown once the incentives ended and proactively adjusted their production volumes to prevent inventory buildup in 2025.

Prior to this, Vietnam’s domestic car production witnessed a growth trend from May through November 2024.

Specifically, during the three-month period of reduced registration fees from September to November 2024, the total output of domestically assembled cars in Vietnam reached 134,500 units, with the highest production volume of 52,400 cars recorded in November.

For the full year 2024, it is estimated that Vietnam assembled 388,500 cars of all types, representing a 27% increase compared to the 12 months of 2023.

Currently, several mass-market carmakers have chosen to assemble and produce cars in Vietnam, including VinFast, Hyundai, Kia, Toyota, Ford, Honda, and Mazda. A handful of luxury car brands also have assembly plants in the country, such as Mercedes-Benz and BMW.

Additionally, a few Chinese carmakers that have entered or are planning to enter the Vietnamese market have confirmed their intention to assemble cars locally for Vietnamese customers. This includes Chery’s Omoda and Jaecoo brands, as well as models from Geely Auto and Lynk & Co, which are also planned to be assembled in Vietnam.

As of the end of November, total car sales as reported by the Vietnam Automobile Manufacturers’ Association (VAMA) stood at 308,544 units, comprising 159,868 domestically assembled cars and 148,676 imported vehicles.

Alongside VinFast’s urban electric SUVs, the Mazda CX-5 and the Toyota Vios were among the most popular domestically assembled cars purchased by Vietnamese customers in 2024. As of November, Mazda CX-5 sold 13,656 units in Vietnam, while Toyota Vios led the B-segment sedan category with 12,706 units sold.

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