In January, member companies of the Vietnam Automobile Manufacturers’ Association (VAMA) experienced a substantial increase in sales, with 36,875 vehicles sold. This represents a 95% growth from the same time the previous year.
The majority of the sales were passenger cars, with 26,102 units sold, according to data published by VAMA. Commercial vehicles also saw significant sales with 10,312 units, while special-purpose vehicles accounted for 461 units.
A low-base effect was identified as a major contributing factor to this sharp increase. The latter half of January last year coincided with the lead-up to the Lunar New Year (Tet), a time when Vietnamese consumers typically curb spending on large purchases such as automobiles.
The recovery observed was evenly split between domestic assembly and imports. Sales of locally produced completely knocked-down vehicles rose by 98% year-on-year to 18,034 units, while fully built-up imports saw a 93% increase, reaching 18,841. This narrow difference indicates a robust resurgence in both local production and imported vehicle supply.
Ford Vietnam topped the list of VAMA brands with 5,121 units sold, narrowly beating Mitsubishi’s 5,039 and Toyota Vietnam’s 4,852. THACO-distributed brands completed the top five, with THACO Mazda and THACO Kia selling 3,515 and 3,487 units respectively. The leading brands benefited from robust line-ups in SUV, crossover, MPV and pickup segments.
The most popular models demonstrate a continued consumer preference for high-ground-clearance and multi-purpose vehicles. The Mazda CX-5 was the top seller with 2,104 units, followed by the Mitsubishi Xforce at 1,666. Ford’s pickup and SUV lineup also saw strong sales.
The VAMA data only represents part of the overall market, as several non-member brands do not publicly release their sales figures. Hyundai Thanh Cong separately reported sales of 5,872 units, while VinFast, a leading player in the electric vehicle market, has not yet disclosed its January data.
However, the pronounced growth reported by VAMA members signals improving market conditions. This is likely due to increased consumer confidence, a rise in travel and logistics activity, and a more supportive economic environment.
What was the main factor contributing to the surge in automobile sales in Vietnam?
The main factor was a low-base effect due to reduced spending in the same period of the previous year, which coincided with the lead up to the Lunar New Year.
Which brands led in sales among VAMA member companies?
Ford Vietnam led in sales among VAMA member companies, followed by Mitsubishi and Toyota Vietnam.
What does the strong sales growth indicate about the market conditions?
The substantial growth in sales suggests improving market conditions, boosted by increased consumer confidence, a rise in travel and logistics activity, and a more supportive economic environment.
