September 2024 brought a significant surge in Vietnam’s automotive market, with car sales rising by 50% compared to previous months. This positive trend was highlighted in the Vietnam Automobile Manufacturers Association (VAMA) report released on October 10.
Sales Overview
A total of 32,023 vehicles were sold in September, representing a 30% year-on-year (YoY) increase from September 2023. The breakdown included 24,714 passenger cars, 6,198 commercial vehicles, and 1,044 hybrid units. The report also noted a 33.5% YoY boost for September alone. From January to September 2024, cumulative sales reached 193,854 units, showing a 2% improvement over the 190,130 units sold during the same period in 2023.
Leading Brands and Market Performance
Toyota continued its reign as Vietnam’s top car brand with a 19.1% market share. The company sold 6,986 vehicles in September, up from 4,700 in August. For the first nine months of 2024, Toyota’s sales reached 40,503 units, a 5.2% increase from 38,490 units sold in the same timeframe in 2023.
Mitsubishi followed closely with a 14.7% share of the market. The brand demonstrated the most significant YoY growth among foreign manufacturers, jumping 88.1% from 2,863 vehicles in September 2023 to 5,385 units in September 2024. This surge was fueled by the popularity of its newly launched XForce SUV.
Thaco Kia ranked third with an 11% market share, down from 14.8% last year. It recorded 4,015 vehicle sales in September 2024, showing a modest 6.9% increase compared to 3,757 units sold in September 2023.
Local Automakers’ Gains
Dothanh Auto, a local manufacturer, saw its sales soar by 120.7%, selling 203 units in September 2024 compared to 92 units in September 2023. Vinamotor also experienced a significant boost with an 80% increase, selling 27 units in September 2024 versus 15 units the previous year.
Isuzu reported impressive growth as well, with sales climbing 63.7% from 678 units in September 2023 to 1,110 units in September 2024.
Market Dynamics: Local vs. Imported Cars
September 2024’s sales figures marked a significant turnaround from earlier in the year when sales were weaker, especially from February to March. This recovery was attributed to attractive promotions by car dealers and a government initiative offering a three-month, 50% discount on vehicle registration fees.
Interestingly, VAMA’s 2024 data indicated a shift in consumer preferences, with imported vehicles surpassing the sales of locally assembled ones for the first time. This change is driven by the belief that imported cars offer superior quality, encouraging buyers to spend more for these options.
Toyota’s HiLux remained a popular choice among consumers, while Ford saw strong performance with models like the Everest, Ranger, and Transit. Mitsubishi’s surge was bolstered by the launch of the XForce SUV, enhancing its market position.
Conclusion
Vietnam’s 50% growth in car sales for September 2024 signals a vibrant rebound for the market, supported by dealer discounts and government incentives. This upward trend points to evolving consumer preferences that increasingly favor imported vehicles, positioning major players like Toyota, Mitsubishi, and Ford to continue competing strongly in a dynamic market landscape.
