Imports match domestic products in auto market sales

Locally produced or assembled vehicles usually outsell imported ones as they are not only more readily available but also cheaper due to faster shipping and the government’s support policies.

Data from the Vietnam Automobile Manufacturers Association shows its member companies sold 67,849 locally assembled vehicles, down 15% from a year ago, while their sales of imported cars rose 16% to 67,035 units.

The association comprises most major auto companies except VinFast and Hyundai Thanh Cong, a joint venture between Hyundai and manufacturer Thanh Cong Motor.

The association members and Hyundai Thanh Cong produce or assemble a limited number of models in Vietnam and import others fully built.

Hyundai Thanh Cong also saw a nearly 15% decline in sales of domestically assembled cars to 18,177 units in the first half.

VinFast, which manufactures all its models, saw its sales grow 71% from the same period last year to around 20,000 units in the first half.

The sales manager of a Japanese car dealership in HCMC said: “Brands assembled several models domestically [in the first half], but many newer models were imported.”

When companies launch new models in Vietnam, they import most of them, so imports offer greater choice to buyers.

This year dealerships have been offering big discounts on imported vehicles to make them more competitive.

The retail price of imported Toyota Yaris Cross was thus cut by as much as VND80 million (US$3,170) or around 10%.

According to the General Department of Customs, Indonesia was the biggest source of auto imports in the first six months, followed by Thailand and China.

Nearly 32,800 units were imported from Indonesia, a 26% increase. Imports from China jumped by 152% to 14,700 vehicles. In contrast, imports from Thailand fell by 27% year-on-year to 23,736 units.

Sales of domestic vehicles are expected to pick up later this year after the government recently cut registration fees for them between August 1 and January 31, 2025.