Car sales in Vietnam continue to rise in October of 2024, according to reports by the Vietnam Automobile Manufacturers’ Association (VAMA). The market grew by 52.8 per cent in sales compared to October last year and 10 per cent from last month, September.
CURRENT MARKET
Passenger car sales continue to dominate Vietnam’s car market, with commercial vehicles tailing behind. Currently, passenger car sales amounted to 26,453 units, a 45.1 per cent increase from October of last year. 7,130 commercial vehicles were sold and also increased from sales of last year by 38 per cent. Meanwhile, hybrids tail far behind with only 1,420 units sold last month and a total of 7,072 units sold overall this year. Special purpose vehicles (SPV) saw a 91.4 per cent improvement in sales with 111 units sold this month. All in all, Vietnam’s October car sales amount to 38,761 units sold.
Toyota continues to be in the lead with 22.5 per cent of the current market share. The Japanese auto giant sold 8,736 cars this month, with a whopping 116.2 per cent increase compared to October 2023. Toyota remains Vietnam’s top-selling foreign car brand. Ford falls second with 5,052 units sold and 13 per cent of the market share, seeing a 65 per cent improvement from last year.
Both Thaco Kia and Thaco Mazda’s sales remain largely unchanged. They have 15.8 and 15.5 per cent shares of the current car market respectively. Their YoY improvements follow 6.2 and 0.2 per cent respectively.
Local Vietnamese car manufacturer Dothanh saw the biggest improvement in sales in its year-on-year (YoY) comparison with 185.2 per cent growth. From 108 cars sold in October last year, Dothanh has sold 308 units for October this year. Daewoo Bus also saw a large improvement with 29 units sold and an 81.3 per cent increase in sales from October last year.
Hino and Vietnam’s own SAMCO saw the biggest decrease in sales with –62.3 per cent and -52.9 per cent respectively. Both companies sold 81 units and 8 units this month respectively.
GOING STRONG
The rise in Vietnam car sales can be traced to the government’s latest car policy for domestically assembled vehicles. Starting in September, buyers who purchase locally assembled and manufactured vehicles can enjoy a 50 per cent cut in their car registration fees. Set to end this November, the initiative notably improved Vietnamese customers’ ability to purchase their vehicles. Additionally, car dealers have provided their consumers with hefty discounts to accommodate the new policy.
Vietnam’s steady positive sales performance can also be attributed to the country’s economic stability. According to sources, the country faced significant growth with a 7.4 per cent increase year-on-year from January to September 2024. Vietnam’s exports have also skyrocketed by 16 per cent with local consumption rates increasing by 7 per cent.
While October’s car sales project a bright picture of the current automotive market, its performance is not as strong compared to last month. September 2024 is considered one of Vietnam’s strongest months in terms of sales for the year. Despite this, Vietnam’s performance in the last seven months has been stable and attractive for incoming automotive investors. Vietnam’s car market is expected to remain strong for the remainder of the year.
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