Vietnam's car market saw May rebound

VAMA members recorded close to 25,800 units sold in May, up 6 per cent on the previous month and 24 per cent on-year.

Sales of passenger cars hit 18,235 units in May, also a 6 per cent increase on April. Similarly, commercial vehicle sales climbed 7 per cent to over 7,290 units. However, special-purpose vehicles contracted by 4 per cent to just 267 units.

The report also pointed out that completely knocked-down vehicles, those that are imported in parts and assembled in Vietnam, sold 11,985 units in May, a fractional increase from the month before. Meanwhile, more than 13,800 completely built-up cars, those that are imported fully assembled, were sold, up 12 per cent on-month.

Combining sales of both VAMA automakers and TC Group with Huyndai brands, Vietnam's vehicle sales totalled over 30,700 units for the period, bringing the total car sales to more than 127,600 units for the first five months of the year. This means an average of 25,522 units were sold each month.

However, this figure has yet to reflect the overview of Vietnam's entire market, given that other brands like Audi, Jaguar Land Rover, Mercedes-Benz, Subaru, Volkswagen, and Volvo have not yet disclosed their business results.

The slight recovery in auto sales in May could be attributed to the automakers' efforts to stimulate customers by offering myriad discounts on different brands.

It is forecast that demand will rebound in the second half of 2024 when the government will continue to implement a 50 per cent registration fee cut for domestically assembled and produced cars.

According to a recent report from the Vietnam Automobile Manufacturers’ Association (VAMA), recorded sales of vehicles were down 11 per cent year-on-year to 82,515 units in the first four months of 2024.

According to a recent report from the Vietnam Automobile Manufacturers’ Association (VAMA), recorded sales of vehicles for February were down 40 per cent from the previous month and 50 per cent on-year, representing the largest decline in almost five years.

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