10 important events affecting the Vietnamese automobile market in 2024

(NADS) - Closing 2024, the Vietnamese automobile market has many fluctuations, this is considered an optimistic signal and opens up many breakthrough opportunities for 2025.

Reporters from Photography and Life Magazine review notable events in the Vietnamese automobile market that took place last year.

1. VinFast dominates the domestic market, sales increase to record levels

Despite its young age, VinFast has made breakthroughs compared to joint ventures that have been present in Vietnam for decades. In 2024, VinFast marked a historic milestone in the domestic market when it became the number 1 brand in Vietnam. In December 2024 alone, VinFast delivered more than 20,000 electric cars, bringing the total number of cars sold in 2024 to more than 87,000 cars, continuing to affirm its leading position in the rankings.

The VinFast VF5 electric car model is currently "heating up" the Vietnamese automobile market.

With this result, VinFast once again affirmed the right move in pursuing a business strategy combining a direct sales model and leveraging the traditional car dealer network.

2. Vietnamese businesses export cars "reversely" to Thailand

In October 2024, Hyundai Thanh Cong exported the first Hyundai Palisade car to the Thai market. This is a particularly important event not only for the Hyundai Thanh Cong joint venture but also for the Vietnamese automobile industry, marking a historical milestone when for the first time a Vietnamese enterprise "goes upstream" to export cars to a country with the leading automobile industry in Southeast Asia.

This demonstrates the quality of Hyundai brand automobile products manufactured and assembled in Vietnam, contributing to enhancing the value and position of the Vietnamese automobile industry in the international market.

3. Vietnam Auto Show 2024 has many brands from China

After a year of postponement, Vietnam Motor Show 2024 (VMS 2024) has officially returned at Saigon Exhibition and Convention Center SECC, District 7, Ho Chi Minh City (From October 23 - 27, 2024).

In 2024, some big brands such as Ford, Hyundai, Mercedes-Benz, Audi, Porsche… will not attend. However, this year’s event will mostly feature new brands from China such as: BYD, GAC, MG…

Vietnam Motor Show 2024 features many car brands from China

With competitive pricing strategies in all segments, Chinese car brands easily attract customers' attention at VMS 2024.

4. Building an automobile manufacturing factory in Ha Tinh with a total capital of 7,300 billion VND

VinFast officially started construction of an electric car factory in Vung Ang Economic Zone, Ky Anh town, Ha Tinh province on December 8, 2024. The factory has a designed capacity of 300,000 vehicles/year in phase 1, which can be increased to 600,000 vehicles/year and create up to 15,000 jobs in the following phases.

Hyundai Thanh Cong Vietnam's first batch of Hyundai Palisade cars exported to Thailand

The factory is expected to be completed in July 2025, with this progress, VinFast has set a new record in the world automobile industry for the speed of construction and completion of the factory. Products from the VinFast Ha Tinh electric car factory will be supplied to the domestic market and exported to international markets.

5. Reduce registration fees for domestically produced and assembled cars

The Government continues to apply the 50% reduction in registration fees to domestically manufactured and assembled cars, effective from September 1, 2024 to November 30, 2024.

Although the Government's reduction of registration fees only lasted for 3 months, it has made an important contribution to stimulating consumption, providing financial support to people and businesses, creating momentum for re-production, reconnecting the supply chain and restoring the industry's growth rate, creating jobs, increasing income for workers, and ensuring social security.

6. The biggest car discount race ever

When the government's policy of reducing 50% of registration fees ended, the car market became quiet.

The MG RX5 SUV model has a 5-year unlimited km warranty that is of particular interest to customers.

To boost sales, many car manufacturers have launched many deep discount promotions to regain market share and revenue during the upcoming Lunar New Year. Car brands with strong discounts include: Teramont, Teramont X, Touareg, which are discounted by Volkswagen Vietnam from 186 million to over 500 million VND; Subaru Forester model reduced by 230 million VND; Honda Accord reduced by 250 million VND; Ford Explorer reduced by more than 100 million VND...

7. The used car market fluctuates.

In 2024, the used car market in Vietnam experienced many ups and downs, reflecting changes in consumer psychology and needs in the new trend.

As of the second quarter of 2024, the number of used cars for sale at showrooms and used car buying and selling forums has increased by more than 50% compared to the same period last year. The selling price of used cars at this time sometimes increased from tens of millions of VND to hundreds of millions of VND depending on the car model, which shows the improvement of the market as well as the need to buy used cars of people is more interested.

8. Many Chinese car brands will enter Vietnam in 2024

In 2024, the Vietnamese automobile market will witness a strong influx of Chinese automobile brands. With a variety of models, competitive prices and modern technology, these brands are putting significant pressure on traditional car manufacturers in Vietnam. Prominent names such as BYD, Omoda & Jecoo, Geely or Haval have officially launched many car models, from sedans, SUVs to electric cars. In particular, Chinese electric car models have advanced technology and reasonable prices, from only 400-700 million VND, targeting young customers who love innovation.

9. Tasco acquires Volvo car import company in Vietnam

Tasco Auto Joint Stock Company has officially completed all procedures to fully own Sweden Auto Company Limited, the only official importer and distributor of Volvo cars in Vietnam.

Tasco currently owns the largest automobile distribution system in Vietnam, specializing in distributing famous brands such as: Toyota, Ford, Hyundai, Mitsubishi, VinFast, Honda...

The acquisition of Sweden Auto helps Tasco become the largest car distributor and has influence on the Vietnamese automobile industry.

10. Trend of interest in practical car lines

Small high-chassis cars are currently of particular interest and favor to consumers, cars in this segment such as Kia Sonet. Kia Seltos, Toyota Corolla Cross, Mitsubishi Xforce... with tall design, equipped with many features, modern technology, reasonable price, suitable for consumers' income conditions. Besides, the popular 5 + 2-seat MPV segment is also the choice of car enthusiasts.

Practical cars are chosen by many customers because of their convenience, tall design, modern technology and reasonable price.

Assessing the Vietnamese automobile market in 2024, many experts commented that although the market still has certain difficulties, thanks to the Government's support policies, the automobile industry in Vietnam is in a strong recovery period and will have a miraculous acceleration in the coming time.

Source: https://nhiepanhdoisong.vn/10-su-kien-quan-trong-tac-dong-den-thi-truong-o-to-viet-nam-nam-2024-15743.html