In this article, published by Vietwheels, we discuss the changing dynamics and trends of Vietnam’s auto sector and car sales in 2023. Members of the Vietnam Automobile Manufacturers' Association (VAMA) faced difficulties in 2023 due to a significant 25% decline in sales from the previous year.
Overview and Sales Data
Automakers connected to VAMA sold just over 300,000 cars in 2023, a steep 25% decrease from the year before. According to a thorough analysis, sales of passenger cars fell 27% year over year to slightly over 230,700 units. Special-purpose vehicle sales fell a startling 56% to little over 2,200 units, while commercial vehicle sales shrank 16% to nearly 70,000 units.
Declines for CKD and CBU Vehicles Overall, fewer than 181,400 completely knocked down (CKD) vehicles were sold in the previous year, a 20% decrease. Concurrently, sales of fully built-up (CBU) cars had a 32% year-over-year decrease, amounting to 120,609 units.
A Glimmer of Hope: The December Rebound
As total auto sales increased by 39% from November to almost 38,800 units in December, there was cause for optimism. Around 30,300 passenger cars were sold, representing a 20.5% increase, while 6,400 commercial vehicles were sold, representing a 9% increase. Sales of special-purpose vehicles increased as well, reaching 200 units.
Sales of CBU vehicles increased by 49% to almost 15,000 units in the same month, while sales of CKD vehicles increased by 33% to over 24,000 units.
The Outstanding Performance of the Thanh Cong Group
In December, Thanh Cong Group (TC Group), a non-VAMA member that specializes in assembling and distributing the Hyundai brand, put on a strong show. With sales of over 10,800 units, TC Group saw a significant rise of 14% from the same quarter last year and 36.4% from November. Nevertheless, TC Group sold 67,450 Hyundai Vietnam vehicles overall in 2023, a decrease of more than 17% from 2022.
Elements Affecting the December Rebound
The year-end shopping season and a major policy change—a 50% decrease in registration fees for cars that are domestically assembled—were credited with the December auto sales resurgence. This incentive most certainly had a significant impact on boosting consumer spending and market activity in the last months of 2023.
We hope this Vietwheels article about Vietnam’s auto sector and sale trends insightful. Please visit our News and Articles page to read more blogs about market trends, news and car sales in Vietnam. The team at Vietwheels wish you the best for finding your dream car sale in Vietnam!
