The Allure of Imported Cars: Vietnamese Consumers Drive Down Prices with Their Preference for Overseas Autos.

Vietnamese Car Buyers Show Strong Preference for Imported Vehicles

While Vietnam’s automotive market showed signs of slight cooling in April 2025, with a 7% dip in sales compared to March, an interesting trend persists: a strong preference for imported vehicles.

According to the latest data from the Vietnam Automobile Manufacturers’ Association (VAMA), released on May 13, total sales by members reached 29,585 units in April, a 7% decrease from the previous month. This includes a 7% drop in passenger cars and a 7% decline in commercial vehicles, while specialized vehicles saw an impressive 11% growth.

However, the year-to-date performance paints a different picture. As of April 2025, a total of 101,834 vehicles were sold by VAMA members, representing a significant 23% increase compared to the same period in 2024. All segments showed upward trends, with passenger cars up by 22%, commercial vehicles up by 27%, and specialized vehicles witnessing the highest growth of 49%.

The notable difference lies in the sales composition between domestically assembled and imported vehicles.

In the first four months of 2025, imported cars proved their strong appeal, with sales reaching 52,870 units, an impressive 35% increase compared to the same period last year.

On the other hand, domestically assembled cars managed a more modest growth of 13%, with sales of 48,964 units. Thus, as of April, imported cars have outperformed their domestically assembled counterparts by a margin of 3,906 units.

Complementing the VAMA data, estimates from the Statistics Bureau suggest that the supply of new cars to the market in April reached approximately 56,563 units, a 4.8% increase compared to March. Domestic production and assembly are estimated at 39,500 units for April, a 3.7% increase month-over-month and a significant 60% surge compared to the same period last year.

Despite the impressive growth in domestic production, imported cars continue to dominate in terms of consumer preference, showcasing a trend that Vietnamese consumers are increasingly favoring imported options.

Record-Low Prices in May

The SUV and crossover segments remain the focal point of promotional programs in May, with price reductions reaching up to hundreds of millions of dong.

Ford: The Everest model sees significant discounts, with certain versions reduced by up to VND 127 million. The Territory also offers incentives ranging from VND 30-50 million depending on the version.

Hyundai: The Santa Fe continues to be heavily discounted, ranging from VND 80-100 million depending on the version and dealership. The Tucson also boasts attractive incentives.

Mitsubishi: The Pajero Sport offers cash and accessory incentives worth tens of millions of dong. MG: The ZS and HS models maintain their price reduction and accessory gift programs.

In May, Toyota Vietnam and its dealer network continue to offer a 50% reduction in registration fees for several models, including their best-selling Toyota Corolla Cross and Yaris Cross. This translates to a savings of VND 41-46 million for the Toyota Corolla Cross and VND 33-38 million for the Yaris Cross.

Other SUV/crossover models like the Mazda CX-5, Honda CR-V, and Subaru Forester also have exclusive promotional programs offered by dealerships.

Fierce competition within this segment, coupled with sales pressure, is believed to be the primary reason behind these significant price cuts by automakers.

Following suit from the previous month, popular sedan models in the B and C segments continue to be promoted by automakers and dealerships alike to stimulate demand.

Toyota: The Vios benefits from a 50% reduction in registration fees, resulting in savings of tens of millions of dong.

Hyundai: The Accent maintains its cash incentive and accessory gift program.

Nissan: The Almera continues to be offered with a 100% waiver on registration fees.

Mitsubishi: The Attrage MT still features a complete waiver of registration fees.

THACO: The KIA Soluto and KIA K3 models have reduced prices. The Mazda2 and Mazda3 also have exclusive promotional programs.

Despite these price reduction efforts, the sedan segment faces intense competition from the high-riding vehicles and shifting consumer preferences.

A select number of models, predominantly domestically assembled, continue to benefit from full registration fee support from manufacturers or dealerships. This incentive can amount to hundreds of millions or even billions of dong for certain luxury assembled models.

Mercedes-Benz: Several assembled models are offered with a 100% waiver on registration fees, resulting in potential savings of over VND 1 billion.

BMW: Assembled models also benefit from attractive registration fee support programs.

Similar programs are offered for assembled models of other brands, providing attractive options for buyers.

These registration fee support policies are seen as a significant boost to stimulate consumer demand and alleviate the cost burden for customers.