Imported Cars and Domestic Assemblies on the Rise: Year-End Auto Price Wars Heat Up

By late 2025, Vietnam’s automotive market witnessed a surge in imported vehicles flooding dealerships, ranging from compact SUVs to mid-size sedans and premium electric cars. Consumers found themselves with a rare opportunity to own new models at reduced prices, while automakers and dealers recalibrated their sales strategies to balance inventory and profitability.

In September alone, an estimated 18,271 completely built-up (CBU) vehicles were imported into Vietnam, totaling $402 million. This marked a 12.3% increase in volume and a 10.7% rise in value compared to the previous month. Cumulatively, in the first nine months of 2025, approximately 156,092 CBU vehicles were imported, valued at $3.418 billion—a 24.8% increase in volume and a 33.3% surge in value year-over-year.

Conversely, domestic vehicle production in September reached around 38,700 units, a modest 2.4% increase from August and a 19.7% jump from the same period last year. This was the second-highest monthly output in 2025, just behind June. Over the first nine months, local manufacturers produced an estimated 338,400 vehicles, a remarkable 52.7% increase compared to 2024, showcasing domestic automakers’ efforts to ramp up production and meet market demand.

September also saw the launch of several new models. Skoda introduced the Slavia, a low-slung B-segment sedan, assembled locally with three variants priced between 468 and 568 million VND. Mitsubishi unveiled an upgraded Xpander, featuring refined design, enhanced technology, and improved safety features. The top-tier Xpander AT Premium and Xpander Cross were priced at 659 and 699 million VND, respectively, a slight increase of one million VND.

In the premium segment, Mercedes launched a mid-cycle refresh of the EQB electric crossover, priced at 2.309 billion VND, a 20 million VND increase. MINI brought the high-performance JCW version of the Countryman to Vietnam, imported from the UK and priced at 2.789 billion VND—the most expensive and powerful Countryman variant available.

Sales-wise, according to the Vietnam Automobile Manufacturers’ Association (VAMA), the market sold 25,973 vehicles in August 2025, an 18% drop from July but a 3% increase year-over-year. VinFast delivered 10,922 electric vehicles to Vietnamese customers, while TC GROUP reported 3,701 Hyundai sales in August, a 2.7% increase from July.

As the fourth quarter begins—the peak season—Vietnam’s auto market is experiencing the most significant price reductions in years. Most brands are offering substantial incentives to boost sales amid ample supply and rising inventory. Despite growing demand for Tet purchases, the influx of imports and high domestic production have forced automakers into a price war to clear stock.

Since early October, many brands have expanded their promotions. Toyota Vietnam increased incentives for the Vios to cover 100% of registration fees from September, while adding 50% registration fee support for the Camry and Hilux. The newly launched Mitsubishi Xpander also received 100% registration fee support in October, along with a year of comprehensive insurance.

Honda Vietnam included the HR-V e:HEV RS/L in its 50% registration fee support program, while raising incentives to 100% for other models. These price cuts and fee subsidies are expected to stimulate year-end sales—a traditional peak period for new car purchases.

Industry experts suggest that the rapid increase in imports alongside robust domestic production may temporarily exceed demand in the final quarter, compelling automakers to compete on price and incentives. For consumers, however, this is an opportune moment to buy, with more options, reasonable prices, and better financing terms than in previous years.