Automobile market struggles to recover from a bad year

The figure includes sales by distributor Hyundai Thanh Cong, member companies of the Vietnam Automobile Manufacturers Association excluding VinFast, and car importers.

South Korean brand Kia and Japan’s Toyota saw the biggest sales declines of 19% and 16%. In contrast, sales were up 14% for Honda and 10% for Mitsubishi, two other Japanese automakers. VinFast did not disclose Vietnam sales data, but a source told VnExpress that the EV maker sold 20,000 units in the country, up 70%.

Last year auto sales hit a five-year low, plummeting by 25%, the second biggest drop in Southeast Asia.

Customers discussing with a salesperson at a Kia dealership in HCMC. Photo by VnExpress/Thanh Nhan

Analysts said the economy continues to face difficulties, persuading consumers to cut back on discretionary purchases like cars.

Many are also waiting and watching after the government said in April it was mulling a registration fee cut for domestically produced vehicles. “Most consumers are just browsing instead of buying,” a Ford dealer in HCMC said.

The Ministry of Finance has proposed that the fee cut take effect in August, and analysts speculated it could spur car sales in the second half.