Vietnam’s Automobile Sales Results in 2023

Vietnam’s automobile sales in 2023 dropped by 20.6% from the previous year to 404,294 units which is the combined total of VAMA members and two non-members Hyundai Motor’s local subsidiary Hyundai Thanh Cong Vietnam (HTCV) and local automaker VinFast. In the first half of the year, the total export value from Vietnam decreased by 12.1% compared to the same period of the previous year, and the economy weakened, with foreign investment decreasing by 4.3%. On the other hand, when the government implemented preferential automobile policies for the second half of the year, sales increased by 19.9% compared to the first half to 165,000 units. Last-minute demand was also seen, with unit sales in December reaching 39,000 units, the highest monthly level in 2023.

Looking at the sales volume of VAMA member manufacturers by vehicle type, overall sales of passenger vehicles decreased by 24.5% from the previous year to 214,619 units, while sales of passenger cars (sedans and hatchbacks) dropped significantly by 43.0% from the previous year to approximately 54,526 units. SUV sales also decreased by 16.9% to 100,071 units, while MPVs declined by 4.0% to 53,062 units.

Looking at market share by brand in 2023, Hyundai regained first place after falling to second position the previous year, although sales volume declined by double digits compared to 2022. Sales of the Accent, Hyundai’s best-selling small sedan model in Vietnam, decreased by 22.9% year-on-year to 17,452 units. On the other hand, the net increase from the introduction of four new models, including the MPV Custin and the SUV Palisade, offset the decrease of existing models. Second placed Toyota (including Lexus) saw sales fell by 36.1% to 59,207 units. Sales of the Vios, Toyota’s top-selling small sedan model in Vietnam, dropped by 42.5% to 13,521 units, and sales of the mass-market SUV Corolla Cross decreased by 51.2% to 10,485 units. In contrast, VinFast saw sales rise by 52.0% year-on-year to 34,855 units. VinFast’s BEV sales from January to September were some 21,000 units, an increase of 8.3 times compared to the same period of 2022. It is thought that sales remained strong throughout the year thanks to the introduction of new models and the benefit of the government’s exemption of BEVs from registration fees.

According to data announced by VAMA, locally assembled vehicles decreased by 19.9% year-on-year to 181,380 units, and imported vehicles fell by 32.3% year-on-year to 120,609 units. However, there was a gradual increase in the number of locally assembled vehicles in the second half of the year compared to the first six months. The Vietnamese government resumed measures to halve domestic vehicle registration fees for the period from July to December, so sales of locally assembled vehicles surged by 28.0% from the first half of the year to approximately 102,000 vehicles.

The automobile market is expected to recover in 2024. In anticipation of an increase in foreign direct investment in its social and economic development plan, the Vietnamese government plans to implement a salary reform policy from July of the same year. On the other hand, the market is concerned about the impact of wars in Europe and the Middle East on the global and Vietnamese economies.