Vietnam 2023. Vehicle Market Down 19.5% After A Great Success In The Previous Year

The 2023 Ford Escape
The 2023 Ford Escape

Vietnamese Vehicles Market crashes heavily. In 2023 total sales reach 698,256 registrations, down 19.5%. Ford up 3 spots into 4th place (+34.4%).

Market Trend and Outlook

Vietnamese Vehicles falls down in 2023. YTD sales reach 698,256 units (-19.5%). December grows for the first time after 5 consecutive negative month with 95,722 total sales (+12.9%).

Looking at cumulative data up to December 2023 brand-wise, Hyundai gains leadership with 135,436 sales (-17.0%), in front of Toyota -down 1 spot- at 117,288 (-35.6%), Kia at 80,330 (-33.9%) and Ford -up 3 spots- at 77,548 sales (+34.4%).

Mazda maintains 5th spot with 69,918 registrations (-3.0%), followed by Mitsubishi -up 2 spots- at 61,169 (-23.3%), VinFast -down 3 spots- at 54,876 (+19.7%) and Honda -down 2 spots- with 46,322 sales (-24.4%).

Suzuki maintains 9th position with 27,451 (-15.3%) same as Isuzu which closes the Top 10 with 17,417 sales (-21.6%).

Looking at specific models the Mitsubishi Xpander becomes the best seller despite falling 10.2% in sales, followed by the Hyundai Accent down 22.9%.

Medium-Term Market Trend

In Vietnam the primary vehicle for individual mobility in the motorcycles and not the car. Over 3 million 2-Wheelers are sold each year, while 4-wheeler sales never achieved the half million.

In the last decade, the car and light commercial market boomed, from less than 100K in 2010 to nearly 400K ten years after. The momentum slowed down in 2021 due to the covid driven measures, with volume falling 0.4%. Although the market did slow down, it was not  hit as roughly as other ASEAN countries.

The birth of a local manufacturer – VinFast – fully dedicated to the electric vehicles (both 4 and 2 wheelers) is a stimulus for the traditional manufacturers controlling the market (Japanese and Koreans) and the incentives for EVs from the government will help to boost the electrification process, which is seen faster in Vietnam than in the rest of the region.

The outlook is positive for the next years, driven by expected growth in the pro capita income and by the modernization of road infrastructures. The market is, in fact, already showing positive signs of growth, with sales surging 21.5% to 465,741 in 2022.

Tables with sales figures

In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models.

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