The Vietnamese automobile market has shown strong import growth in the first half of 2024, despite the government’s recent policy to reduce registration taxes for domestically produced cars. According to the latest report from the General Department of Customs, the influx of imported cars remained strong in the first half of September.

Specific data shows that in the first half of September, Vietnam imported a total of 8,267 complete vehicles, generating a turnover of 170.8 million USD. Among these, cars with nine seats or fewer dominated, with 6,815 units sold, accounting for a turnover of 120.5 million USD. This trend highlights the enormous demand for imported cars while also putting continued pressure on domestic manufacturers.

The cumulative data from the beginning of the year to September 15 is even more striking. Vietnam imported a total of 114,855 complete vehicles during this period, with a total value of 2.36 billion USD. Compared to the same period last year, the import volume increased significantly by 24.3% (an increase of 22,474 units), while the turnover increased by 9.26%. It’s worth noting that although the number of imported cars increased significantly, the growth rate of turnover was relatively low, indicating a decrease in the average value of imported cars.

So far this year, the average price of imported cars is about 21,000 USD per unit (excluding taxes). These imported products mainly come from Asian countries, especially Indonesia, Thailand, and China. As of the end of August, Vietnam had imported 106,627 complete vehicles with a total value of nearly 2.2 billion USD. Compared to the previous year, the transaction volume increased by 22.9%, and the turnover increased by 7.5%. This trend is consistent with the data after September 15, where the growth in the number of cars significantly exceeded the growth in turnover, resulting in a lower average value for these imported cars compared to last year.

Since the beginning of this year, the average price of imported cars has dropped from about 23,500 USD last year to nearly 21,000 USD. In terms of supplying countries, Indonesia leads with 43,810 cars valued at 642.24 million USD, followed by Thailand (39,101 units, valued at 756.64 million USD) and China (19,649 units, with a total value of nearly 582 million USD).

Despite the Vietnamese government’s announcement to reduce registration taxes for domestically produced cars by 50%, sales of domestic cars have seen a significant decline. In contrast, sales of imported cars have surged due to promotional campaigns implemented by manufacturers. This trend has raised concerns in the Vietnamese automotive industry, especially as local manufacturers face severe challenges even after government support measures.

Compared to domestic cars, the growth in sales of imported cars is causing worry in the Vietnamese automotive industry. This trend highlights the challenges faced by local manufacturers, particularly after government support measures. It provides an opportunity for local manufacturers to rethink their strategies and innovate to reclaim market position and enhance competitiveness.

Key Summary:

• Automobile imports in Vietnam continued to grow in the first half of 2024, with 8,267 complete vehicles imported in the first half of September.
• From the beginning of the year to September 15, Vietnam cumulatively imported 114,855 complete vehicles, a year-on-year increase of 24.3%.
• The average price of imported cars has decreased from about 23,500 USD last year to 21,000 USD.
• Indonesia, Thailand, and China are the main sources of car imports for Vietnam.
• Despite the government reducing registration taxes for domestically produced cars, sales of domestic cars have declined while imported car sales have surged.
• The strong growth trend of imported cars has raised concerns in the Vietnamese local automotive industry, facing challenges to reformulate strategies.