The Domestic Auto Market: Still Struggling to Accelerate

According to a report by the Vietnam Automobile Manufacturers’ Association (VAMA), the total market sales in May 2025 reached 29,210 vehicles of all types. This figure is a 1% decrease from April 2025, but a 13% increase compared to the same period last year.

This is the second consecutive month of declining car sales in Vietnam after peaking at 31,750 vehicles in March. In the previous month’s report, VAMA recorded a 7% decrease in total market consumption.

In May, passenger car sales reached 20,014 units, a 3.6% decrease from April, while commercial vehicle sales reached 8,983 units, a 4% increase. Specialized vehicle sales also increased by 6%, with 213 units sold.

VAMA noted that these figures represent the actual retail sales of association members and imported completely built-up (CBU) vehicles by non-VAMA units in May 2025. The two brands with the largest market share in Vietnam, VinFast and Hyundai, announce their sales figures separately.

In terms of origin, the sales of domestically assembled vehicles reached 13,800 units, a 1% decrease from the previous month. Imported completely built-up (CBU) vehicle sales also slightly decreased by 2%, with 15,410 units sold in May.

Considering the segments, MPV was the only group with positive sales growth in May, with a 14.5% increase and 4,349 units sold. In contrast, the other segments, including SUV/Crossover (7,839 units), sedan (2,728 units), and pickup truck (1,965 units) all declined by 3.7-17%.

Hybrid vehicle sales also witnessed a slight decrease, with 970 units sold in May, just 3 units less than the previous month. However, the cumulative sales from the beginning of the year for this environmentally friendly group reached a total of 4,505 units, an increase of nearly 57% compared to the same period last year.

In the electric vehicle segment, the VinFast brand announced its May 2025 business results in the domestic market, with 11,496 units sold. This figure is nearly 2,000 units higher than in April, equivalent to a 20% growth rate. The total number of VinFast electric vehicles sold in the domestic market since the beginning of the year reached 56,187 units.

Overall, car sales in the Vietnamese market in May 2025 decreased in most vehicle groups and segments. The price reduction efforts made by manufacturers and dealers seem to have only contributed to maintaining sales levels close to April’s, but have not yet created momentum for the market to surge.

According to VAMA, although there was a decrease in May, the cumulative sales from the beginning of the year for the entire market still showed a strong increase of 21% compared to the same period in 2024, reaching 131,044 vehicles of all kinds. Passenger car consumption increased by 19%, commercial vehicles by 26%, and specialized vehicles by 30% over the same period last year.

Among the VAMA members, Toyota led in sales for the first five months of the year with a total of 23,061 vehicles. This was followed by Ford (17,533 units), Mitsubishi (12,130 units), Mazda (11,803 units), Kia (10,116 units), and Honda (9,710 units).

In June, manufacturers are continuing to offer price reductions and promotions to clear inventory and boost sales. Additionally, the introduction of new models such as the 2025 Hyundai Creta, 2025 Isuzu Mu-X, the new BMW X3 and 5 Series, and the 2025 Suzuki Swift is expected to bring excitement back to the domestic car market.