The Automotive Market in Vietnam: Q1 2024 Sales Report
The Vietnamese automotive market has recently concluded its first sales quarter of 2024. Facing economic challenges, the market’s purchasing power witnessed growth in March 2024. However, overall demand remained relatively weak, with vehicle sales significantly lower compared to the same period in 2023.
According to the Vietnam Automobile Manufacturers’ Association (VAMA), the total market sales for March reached 27,289 units, comprising 19,014 passenger cars, 8,047 commercial vehicles, and 228 specialized vehicles. While passenger car sales increased by 135%, commercial vehicle sales rose by 131%, and specialized vehicles by 307% compared to the previous month, all segments remain below their March 2023 sales levels by 9%.
Dealerships offer significant discounts on Hyundai Custin models.
VAMA’s report also indicates that automobile manufacturers operating in Vietnam sold a total of approximately 76,500 vehicles during the first quarter of 2024, marking a 17% decrease compared to Q1 2023.
Due to subdued consumer demand, the price war among automakers and dealerships continues to intensify in the market. Consequently, some manufacturers and distributors still have inventory from 2023 models and variants, prompting them to offer massive discounts to stimulate consumer demand.
Currently, Hyundai Custin assembled domestically in 2023 (VIN 2023) is available at significantly reduced prices. The high-end Hyundai Custin 2023 model is currently offered at prices ranging around 920 million VND, representing a substantial reduction of over 80 million VND from its initial price of 1 billion VND.
It’s important to note that these incentives are implemented by individual dealerships, resulting in varying discount rates. Some dealerships offer smaller price reductions but may provide additional accessories as customer incentives.
Another popular sedan model, the Hyundai Accent 2023, is also experiencing significant price cuts by many dealerships to clear remaining inventory. These reductions have brought the price of the Accent below 500 million VND, narrowing the gap with entry-level A-segment vehicles.
Hyundai Accent in white: a highly-rated 5-seater sedan in the B-segment.
Specifically, the Hyundai Accent Special Edition (top-of-the-line variant) has a listed price of 542 million VND. However, several dealerships are willing to sell the Accent Special Edition VIN 2023 for around 480 million VND, a significant reduction of over 60 million VND from its original price.
At this price point, the top-of-the-line Hyundai Accent is only slightly more expensive than its manual transmission variant, priced at 472 million VND. This makes it a competitive option compared to its rival, the Toyota Vios manual transmission variant, which has a recommended retail price of 458 million VND, despite offering superior features and amenities.
Toyota Vios also benefits from dealership discounts.
Another model witnessing similar inventory clearance measures is the Toyota Vios, which offers a double discount: a manufacturer-provided price reduction of 21 – 47 million VND and an additional 10 – 15 million VND discount (without gifts) from dealerships. These incentives bring the actual vehicle prices down to approximately 445 – 530 million VND, depending on the variant.
