Vietnam’s car market is evolving rapidly in 2025, with electric and hybrid vehicles becoming increasingly popular. Key drivers include high fuel prices (around $6 per gallon in Ho Chi Minh City), government incentives like zero registration fees for EVs until 2027, and a growing interest among younger generations. Electric vehicles now account for 34% of total car sales, with the market valued at USD 3.12 billion this year. Domestic production is also on the rise, with local brands like VinFast leading the charge, selling 87,000 EVs in 2024 and dominating sales in early 2025.
Here’s a quick look at some of the new car models hitting Vietnam’s roads this year:
- ISUZU MU-X 2025: A durable SUV with off-road capabilities, priced from VND 928 million.
- Audi A6 S line: A luxury sedan with mild-hybrid technology, starting at VND 2.299 billion.
- Suzuki Swift 2025: A compact, fuel-efficient option for city driving.
- Haval Jolion: A hybrid SUV priced between VND 736–779 million.
- Geely EX5: A mid-sized electric SUV priced at VND 1.311 billion.
- Geely Monjaro: A premium SUV with advanced features.
Government policies, foreign investments, and a push for greener transportation are shaping Vietnam’s automotive future. EVs are expected to grow by 25–30% this year, with increasing adoption in urban areas. The market is also seeing more affordable and tech-friendly options, catering to the rising demand for smarter, eco-conscious vehicles.
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Vietnam Car Market Trends for 2025
Vietnam’s automotive market in 2025 is being shaped by three major trends that are influencing new models and reshaping what buyers expect. These changes are opening up opportunities for both local and international manufacturers while redefining the way people choose their vehicles.
Electric and Hybrid Vehicle Growth
The electric vehicle (EV) market in Vietnam has hit a major milestone in 2025. EVs now account for about 34% of total vehicle sales in the country. With a market valuation of USD 3.12 billion this year, EVs are projected to grow at a rate between 18.88% and over 25%, potentially reaching USD 7.41 billion by 2030.
The government has played a big role in this growth. In March 2025, Decree No. 51/2025/ND-CP extended the zero percent registration fee for EVs until February 28, 2027. Additionally, there’s no import tax on EV components and machinery. Urban areas like Hanoi, Ho Chi Minh City, and Da Nang are leading the charge, with the government aiming for half of all vehicles in these areas to be electric by 2030. Businesses are also making the switch to EVs to meet environmental standards, with VinFast delivering around 35,100 EVs domestically in the first quarter of 2025 – two-thirds of which were VF 3 and VF 5 models, largely driven by corporate demand.
"Due to their many environmental advantages, electric vehicles are an essential part of the global effort to promote sustainable practices and fight climate change. In order to fully realise the potential of electric vehicles and usher in a new era of sustainable mobility, VinFast is adamant that governments, corporations, and individuals must continue to promote the growth and adoption of these vehicles."
These initiatives are fueling the growth of local EV production and setting the stage for a more competitive market.
Local Production and New Brands
Domestic vehicle production is on the rise, with total sales expected to hit 600,000 units in 2025, marking a 12% increase from 2024. The car ownership rate has also climbed to 41 cars per 1,000 people, compared to 36 in 2023. This expanding market has attracted foreign manufacturers, especially Chinese companies, which are introducing vehicles designed to meet Vietnamese preferences.
While policies have created a supportive environment for both local and international players, consumer preferences are shifting. Buyers are increasingly choosing imported models, particularly in the premium and mid-range categories. This trend is pushing local manufacturers to improve quality and add more features to stay competitive. Foreign brands, especially from China, are also forming partnerships to produce vehicles tailored for Southeast Asia, often focusing on electric and hybrid options to align with Vietnam’s green transportation goals.
As production scales up, the demand for advanced safety features and smart technologies is becoming a key focus.
Smart Technology and Safety Features
In 2025, Vietnamese car buyers expect advanced safety systems and smart technologies as standard features. This is driven by a heightened awareness of road safety and the influence of younger, tech-savvy consumers who want their vehicles to integrate seamlessly with their digital lifestyles. The automotive AI market is projected to grow from USD 4.7 billion in 2025 to nearly USD 49 billion by 2034.
VinAI is leading the charge in this area, showcasing its groundbreaking innovations at CES 2025. Their InteriorSense Suite includes DrunkSense, the first passive drunk driving detection system with 85% sensitivity, eliminating the need for a breathalyzer. Other features include MirrorSense, which adjusts mirrors with 10mm accuracy based on the driver’s position, and a Driver Monitoring System that complies with EU safety regulations.
The SurroundSense Suite offers practical tools like Touch2Park, a Level 2 smart parking solution, and Jelly View, a 3D transparent mode for better visibility. These technologies are already in use on over 80,000 vehicles, with plans to expand to more than 800,000 vehicles in the next five years.
"VinAI’s AI solutions are developed with a focus on optimising performance on systems with limited resources. This enables automotive manufacturers to integrate advanced technologies without requiring hardware upgrades, reducing costs and enhancing competitiveness. This flexible approach not only broadens the applicability of AI but also meets the growing demand for smart and safe vehicles from automakers worldwide." – Mr. Vuong Cap, Director of VinAI’s Smart Mobility Division
FPT Corporation is also making strides with its ASPICE-X framework, which uses AI to improve the software development process for automotive applications. These advancements ensure that smart features are not only developed locally but also maintained within Vietnam’s growing tech ecosystem. What’s noteworthy is that these technologies are no longer limited to luxury vehicles. Even entry-level models in 2025 are expected to include features like real-time data analytics, driver-assist systems, predictive diagnostics, and personalized in-vehicle services. This widespread adoption highlights Vietnam’s rapid embrace of digital solutions across all vehicle categories.
New Car Models Launching in Vietnam in 2025
The Vietnamese automotive market is gearing up for an exciting year in 2025, with manufacturers introducing models that cater to local needs. These vehicles emphasize fuel efficiency, advanced safety features, and competitive pricing, reflecting the evolving preferences of Vietnamese consumers and the support of government policies.
ISUZU MU-X 2025
The ISUZU MU-X 2025 is designed for families and businesses, offering rugged off-road capabilities alongside enhanced interior comfort and tech upgrades. This model now includes smartphone connectivity and an updated infotainment system.
Buyers can choose from five variants:
- MU-X B7 4×2 MT: VND 928,000,000
- MU-X B7 Plus 4×4 AT: VND 1,016,000,000
- MU-X Sport 4×4 AT: VND 1,145,000,000
- MU-X Prestige 4×2 AT: VND 1,169,000,000
- MU-X Premium 4×4 AT: VND 1,269,000,000
The four-wheel-drive options are especially appealing to those living in rural areas or dealing with challenging road conditions.
Audi A6 2025
Audi brings its luxury sedan, the A6 S line 40 TFSI, to Vietnam in 2025. Starting at VND 2,299,000,000, this model features a mild-hybrid 2.0L turbo petrol engine, premium materials, advanced driver assistance systems, and robust connectivity features. It’s a strong contender for those seeking a high-end, performance-driven vehicle.
Suzuki Swift 2025
Compact and agile, the Suzuki Swift 2025 is built for city driving. It offers ease of maneuverability and fuel efficiency, meeting the needs of urban commuters who navigate Vietnam’s bustling streets daily.
Haval Jolion
The Haval Jolion makes its debut in Vietnam with a hybrid powertrain that combines a 1.5L petrol engine and an electric motor. Available in two variants:
- Jolion Pro: VND 736,000,000
- Jolion Ultra: VND 779,000,000
This model is an appealing choice for environmentally conscious buyers, blending contemporary styling with hybrid efficiency. Its pricing and features make it an attractive option for young families and urban professionals.
Geely Monjaro and EX5
Geely officially launched the EX5 and Monjaro SUVs in Vietnam in July 2025, with Tasco Auto as the distributor.
- Geely EX5: A mid-sized electric SUV, priced at VND 1,311,000,000 (approximately $50,000 USD). It rivals models like the Toyota RAV4 and MG S5, offering premium features and earning 5-star safety ratings from Euro NCAP and ANCAP.
- Monjaro: A premium SUV that delivers luxury and advanced technology, catering to buyers seeking a high-end Chinese alternative.
In a significant move, Geely partnered with Vietnam’s Tasco Group in September 2024 to establish a $168 million automotive assembly facility in Thai Binh Province. Construction begins in 2025, with production expected by late 2026 and an annual output target of 75,000 vehicles.
"Our expansion into Vietnam represents a strategic cornerstone of Geely’s global vision. We’re introducing a diverse product portfolio while building robust local operations to deliver mobility solutions that truly address the unique needs of Vietnamese customers. Through local manufacturing investment and supply chain collaboration, we aim to contribute to Vietnam’s automotive sector, fostering mutual growth and prosperity." – Evin Ye, Vice President of Geely Automobile International Corporation (GAIC)
Geely Coolray
The Geely Coolray, rebranded from Malaysia’s Proton X50 SUV, targets younger buyers with its sporty design and modern features. With bold styling, advanced connectivity, and entertainment options, it’s tailored for first-time SUV buyers and professionals seeking a tech-savvy and distinctive ride.
The next section will delve into a comparison of these models, focusing on their features and pricing to highlight their individual strengths.
Car Model Comparison: Features and Pricing
Feature and Price Comparison Table
Here’s a quick look at how some key 2025 car models stack up in terms of performance, seating capacity, and pricing. This table provides a snapshot of their specifications, along with local pricing data:
| Car Model | Engine Type | Power | Seating Capacity | Transmission | Price Range (VND) |
|---|---|---|---|---|---|
| ISUZU MU-X | 3.0L Diesel | 190 hp | 7 | Manual/Automatic | 928,000,000 – 1,269,000,000 |
| Audi A6 S line | 2.0L Turbo (Mild-Hybrid) | N/A | 5 | Automatic | 2,299,000,000 |
| Haval Jolion | 1.5L Hybrid | N/A | 5 | Automatic | 736,000,000 – 779,000,000 |
| Geely EX5 | Electric | N/A | 5 | Automatic | 1,311,000,000 |
The price range highlights clear distinctions between these models, from the budget-friendly Haval Jolion starting at VND 736,000,000 to the luxury-tier Audi A6 S line priced at VND 2,299,000,000. Below, we dive into the strengths and weaknesses of each car to help you make an informed decision.
Advantages and Disadvantages
While the table captures key specs, this section unpacks the practical pros and cons of each model, especially for Vietnamese buyers.
ISUZU MU-X
This model is built for adventure, with its sturdy diesel engine and off-road capabilities, making it a good fit for Vietnam’s varied terrain. However, diesel engines might not appeal to environmentally conscious buyers, and rising fuel costs could be a concern.
Audi A6 S line
The Audi A6 S line offers a premium driving experience with advanced features and mild-hybrid technology. It’s ideal for those seeking luxury and cutting-edge tech. That said, its high price tag makes it accessible only to a niche group of buyers.
Haval Jolion
Combining hybrid efficiency with an affordable price, the Haval Jolion is a strong option for families looking to save on fuel costs while being environmentally aware. However, as a newer brand in Vietnam, its service network and long-term reliability are yet to be fully established.
Geely EX5
For those ready to embrace electric vehicles, the Geely EX5 delivers zero-emission driving and top-tier safety ratings. However, buyers need to consider the availability of charging infrastructure and its higher upfront cost compared to traditional petrol cars.
These comparisons reflect a broader shift in the automotive landscape. While internal combustion engines still dominate, there’s an undeniable move toward greener options. With government plans to achieve 50% EV adoption in urban areas by 2030, and a KPMG report showing that 70% of Vietnamese consumers are open to electric or hybrid vehicles, the future of driving in Vietnam is clearly leaning toward sustainability.
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How 2025 Car Launches Will Affect Vietnam
Benefits for Vietnamese Consumers
The 2025 car launches are set to shake up the market in ways that favor buyers. With a surplus of over 110,000 vehicles in 2024, manufacturers have slashed prices to clear out existing inventories and make room for new models. Some brands have even reduced prices and fees by as much as VND75 million, offering significant savings.
Electric vehicle (EV) buyers stand to gain even more, thanks to government incentives. Current policies exempt battery electric vehicles from registration fees until February 2025, with a 50% reduction in fees extending until February 2027. On top of that, VinFast has announced plans for its VF 3 model to hit the market with a starting price of just US$20,000, making it one of the most affordable EV options available.
With car ownership in Vietnam still relatively low – just 50 cars per 1,000 people – and demand expected to rise to 800,000–900,000 cars by 2025, the market is primed for growth. The new models also mean greater variety for consumers. Whether it’s the rugged ISUZU MU-X for adventure seekers or the luxury Audi A6 S line with mild-hybrid tech, there’s something for everyone. Plus, with 70% of Vietnamese consumers showing interest in greener vehicle options, the increasing availability of electric and hybrid vehicles is hitting the right note.
These developments not only benefit consumers but also contribute to local production and job creation.
Local Industry Growth and Jobs
Vietnam’s automotive sector is poised for 12% growth in 2025, with the industry employing about 207,000 people and generating a market value of US$2.21 billion. Between January and April 2025, total vehicle sales jumped 23%, reaching 101,834 units compared to the same period in 2024.
Foreign investments are also playing a key role. In 2024, the Geely Group partnered with Tasco to establish a vehicle assembly plant in Thai Binh, with an annual capacity of 75,000 units. Similarly, Geleximco-Chery is investing US$800 million in a new assembly facility, with the first phase expected to be operational by early 2026. Skoda Auto has joined forces with TC Motor to set up its first Southeast Asian manufacturing hub in Quang Ninh.
The government is actively supporting the industry’s development. Vietnam aims to produce 55–60% of automotive components domestically by 2030 and increase that figure to 80–85% by 2045. Currently, about 70% of vehicles sold in Vietnam are assembled locally, though only 20% of their components are produced within the country.
"By increasing the localisation rate, carmakers can reduce product costs, improve competitiveness, and create thousands of high-quality jobs, contributing to local economic development."
– Vu Ba Phu, director of the Trade Promotion Agency under the Ministry of Industry and Trade
"These developments play a crucial role in nurturing Vietnam’s economic growth, technological advancement, lifestyle needs, and job creation."
– Fiona Chiew, general manager of Messe Frankfurt (HK) Ltd
As the industry grows, it’s also aligning with environmental goals, shaping a more sustainable future.
Environmental and Climate Goals
The 2025 car launches mark a step forward in Vietnam’s journey toward sustainable transportation and its 2050 carbon neutrality goal. By the end of 2025, electric and hybrid vehicles are expected to account for 15–20% of passenger car sales, with the segment projected to grow 25–30% in volume.
Government policies are paving the way for this transition. Hanoi plans to ban petrol-powered motorbikes in certain areas starting July 2026, with additional restrictions on cars, and will prohibit fossil fuel–powered motorcycles and mopeds within Ring Road 1. These measures are designed to encourage the adoption of electric vehicles.
VinFast’s achievements highlight the momentum in the EV market. In 2024, the company sold 87,000 electric cars, helping electric and hybrid vehicles make up over 22% of new passenger car sales in Vietnam.
VinFast has also emphasized the environmental importance of EVs:
"Due to their many environmental advantages, electric vehicles are an essential part of the global effort to promote sustainable practices and fight climate change. In order to fully realize the potential of electric vehicles and usher in a new era of sustainable mobility, VinFast is adamant that governments, corporations, and individuals must continue to promote the growth and adoption of these vehicles."
The government’s incentives, such as waived registration fees for battery electric vehicles and investments in charging infrastructure, are making EVs more accessible. These efforts are not only helping Vietnam achieve its climate targets but also reducing its dependence on imported fossil fuels.
Conclusion
The year 2025 is set to reshape Vietnam’s automotive scene, with electric vehicles (EVs) taking center stage and international brands introducing fresh options for consumers. The numbers tell a compelling story: EVs now make up about 34% of the country’s automotive market. VinFast alone delivered an impressive 67,569 EVs in just the first half of 2025 and is aiming for a total of 200,000 cars by year’s end.
This rapid growth is also fueling fierce competition among brands. The arrival of seven new Chinese manufacturers in 2024 has brought the total to 13, surpassing Japan’s nine brands in the Vietnamese market. Combined with government incentives and Vietnam’s ambitious goal for 30% of all four-wheeled vehicles to be electric by 2030, the landscape is primed for innovation and greater consumer options.
Despite these developments, vehicle ownership in Vietnam remains relatively low – only one in 43 people owns a car, compared to one in 10 in Thailand. This gap underscores the tremendous growth potential, especially as new models, competitive pricing, and shifting consumer preferences continue to drive demand. The year 2025 promises to be a turning point for sustainable growth and greater choice for Vietnamese consumers.
Stay tuned to Vietcarnews for the latest updates and detailed insights as Vietnam’s automotive market continues to evolve.
FAQs
What is driving the growing popularity of electric vehicles in Vietnam’s car market for 2025?
The surge in electric vehicle (EV) popularity in Vietnam’s 2025 car market can be traced to several important factors. A heightened awareness of environmental challenges, along with a growing demand for sustainable and eco-conscious options, has had a major impact on consumer preferences. Adding to this, government-backed initiatives promoting green energy and offering incentives for EV adoption have played a crucial role in speeding up this shift.
Vietnam’s EV market is on an impressive growth trajectory, with estimates placing its value at around ₫75 trillion by 2025. This growth is being bolstered by improvements in infrastructure, particularly the development of a network of charging stations, which is making EVs a more practical and convenient choice for daily life. Together, these elements are redefining Vietnam’s automotive sector, paving the way for cleaner and greener transportation options.
How are government policies driving the adoption of electric and hybrid vehicles in Vietnam?
Vietnam’s government has taken proactive steps to speed up the adoption of electric and hybrid vehicles. One standout policy is the extension of registration fee exemptions for EVs, now valid until February 2027, which helps to make these vehicles more affordable for buyers. On top of that, the National Action Program for Green Transportation, rolled out in 2022, sets a clear roadmap for transitioning to cleaner road transport, aiming for widespread use of EVs and hybrids by 2025.
These efforts not only align with Vietnam’s environmental objectives but also stimulate the automotive industry’s growth, paving the way for a market that’s both sustainable and forward-thinking. For consumers, this translates to more budget-friendly and accessible options in the expanding EV market.
What are the key technologies in the new cars launching in Vietnam in 2025?
New Car Models Coming to Vietnam in 2025
The car market in Vietnam is set to turn heads in 2025, with several exciting new models on the way. A major highlight? Electric vehicles (EVs) are expected to take center stage. This shift reflects Vietnam’s growing commitment to greener, more sustainable transportation options.
But it’s not just about going electric. These upcoming vehicles will also bring AI-powered advancements to the table. Think advanced driver-assistance systems (ADAS) that boost safety, software-driven features for optimized performance, and cutting-edge electrification technologies designed to improve energy efficiency. These innovations align perfectly with Vietnam’s move toward environmentally conscious automotive solutions, meeting the demands of an increasingly eco-aware market.
