This continued expansion was largely attributed to the Government's decision to cut registration fees by 50% for domestically manufactured and assembled vehicles, a policy set to last from September to November 2024. This initiative has significantly boosted consumer purchasing power.
According to the Vietnam Automobile Manufacturers Association (VAMA), sales of vehicles by VAMA members reached 38,761 units in October 2024, marking a 6% increase from the previous month and a 53% rise compared to October 2023.
While the growth in October was more subdued compared to the explosive rise in September, it reflects the sustained attractiveness of Vietnam's market, particularly when compared to the same period last year. Of the total sales in October, 30,245 units were passenger cars, a 4% increase from September. Passenger vehicles remain the dominant segment, popular for their flexibility and suitability for personal use.
Commercial vehicle sales saw a notable 13% increase compared to the previous month, with 8,290 units sold. This segment is primarily driven by the demand for goods transport and passenger services, and expanding as the economy recovers. On the contrary, sales of specialty vehicles fell by 8%, with only 226 units sold.
One key trend in the October 2024 market was the difference in sales between domestically assembled vehicles and imported ones. VAMA's report indicated that sales of locally assembled vehicles reached 21,113 units, an 8% increase from the previous month, while imports totalled 17,648 units, a 3% rise. This suggests that Vietnamese consumers are continuing to favour locally produced cars, attracted by lower prices and government incentives, particularly the registration fee reduction for domestic vehicles.
In terms of individual brands, Toyota remained the market leader, selling 8,736 units in October. Other manufacturers, including Ford (5,522 units), Mitsubishi (4,410 units), Kia (4,271 units), Mazda (3,933 units), and Honda (3,606 units), also performed strongly, reflecting intense competition in the market. Each brand is striving to maintain and expand its market share by improving models, enhancing services, and offering attractive promotions.
In addition to VAMA members, other players such as Audi, Jaguar Land Rover, Mercedes-Benz, Nissan, Subaru, Volkswagen, and Volvo were also present in the market, though they did not disclose their sales.
VinFast, the Vietnamese electric vehicle manufacturer, reported a significant milestone in October, delivering over 11,000 electric cars. This brought the total number of vehicles sold in 2024 to more than 51,000, making it the best-selling car brand in Vietnam for the first 10 months of the year.
With the combined sales of VAMA, TC Group, and VinFast, the total number of cars sold in Vietnam in October 2024 reached 57,400 units. For the first 10 months of 2024, the total sales across these groups amounted to 363,890 units, signalling positive growth despite ongoing challenges.
Experts agree that October marked a small but significant step forward for the Vietnamese car market, driven by the reduction in registration fees and various promotional efforts by companies. While the growth rate was slower than in September, the continued stability is seen as a positive sign for the industry.
Overall, the Vietnamese automobile market remains highly attractive, and with strong competition and flexible strategies from car manufacturers, the market is expected to experience more exciting developments in the coming months.
