This guest article is brought to you by VietWheels and discusses the rapid rise in car sales in Vietnam in 2024 and explores the market dynamics for Vietnam car sales.
Vietnam's automobile market experienced a notable upswing in the September 2024 quarter, with car sales increasing by 50% over the preceding months. The Vietnam Automobile Manufacturers Association (VAMA) report, which was published on October 10, emphasized this encouraging trend.
Growth in Vietnam’s Car Sales
The number of vehicles sold in September was 32,023; this represents a 30% YoY increase over September 2023. 24,714 passenger automobiles, 6,198 commercial vehicles, and 1,044 hybrid vehicles were included in the breakdown. Additionally, the report reported a YoY increase of 33.5% for September alone. Sales were 193,854 units from January to September 2024, a 2% increase over the 190,130 units sold in the same time frame in 2023.
Major Brands Dominate Car Sales in Vietnam
With a 19.1% market share, Toyota maintained its position as the leading automaker in Vietnam. In September, the business sold 6,986 cars, up to 4,700 in August. Toyota sold 40,503 units during the first nine months of 2024, up 5.2% from 38,490 units during the same period in 2023.
Mitsubishi came in second with a market share of 14.7%. Among international manufacturers, the brand saw the biggest year-over-year growth, increasing by 88.1% from 2,863 vehicles in September 2023 to 5,385 units in September 2024. The popularity of its recently released XForce SUV was the main driver of this increase.
With a market share of 11%, Thaco Kia came in third place, down from 14.8% the previous year. Compared to 3,757 vehicles sold in September 2023, it registered 4,015 vehicle sales in September 2024, indicating a little 6.9% rise.
Growth in Vietnam’s Car Manufacturing
The local manufacturer Dothanh Auto had a 120.7% increase in sales, selling 203 units in September 2024 as opposed to 92 units in September 2023. Vinamotor saw a notable uptick as well, selling 27 units in September 2024 as opposed to 15 the year before, an 80% increase. With sales rising 63.7% from 678 units in September 2023 to 1,110 units in September 2024, Isuzu also reported significant increase.
Imported Cars versus Local Cars
Compared to earlier in the year, when sales were lower, particularly from February to March, September 2024 sales data represented a tremendous turnaround. Car dealers' alluring advertisements and a government program that offered a three-month, 50% discount on vehicle registration fees were credited with this comeback.
Remarkably, VAMA's 2024 data showed a change in consumer preferences, as sales of imported cars surpassed those of locally built cars for the first time. The idea that imported automobiles are of higher quality, which incentivizes consumers to pay more for them, is the driving force behind this shift.
Customers continued to favor Toyota's HiLux, while Ford experienced impressive results with vehicles like the Everest, Ranger, and Transit. The introduction of the XForce SUV strengthened Mitsubishi's rise and improved its market position.
Summary
Vietnam's automobile sales increased by 50% in September 2024, indicating a strong market recovery bolstered by government incentives and dealer discounts. This growing trend indicates changing consumer preferences that favor imported cars more and more, putting big companies like Ford, Mitsubishi, and Toyota in a great position to compete in a changing market.
