Vietnam’s automobile market is expected to bounce back in the last months of 2024 if a proposal to cut registration fees by a half for domestically manufactured and assembled cars is approved.

There are about 2.4 million cars in circulation and most of them run on gasoline, but by 2050 most vehicles will be electric, a report says.

Despite a slowdown in the Vietnamese car market, the influx of foreign cars remains strong.

The news that the government may approve a 50 percent vehicle registration tax cut applied to brand new domestically-assembled cars has caused people to postpone their purchases until the cut goes into effect.

Sales of used cars have bounced back after a long period of slow growth. Many buyers have cancelled their plans to buy new cars and have bought used autos instead.

The development of electric vehicles in the Vietnamese market has shown significant progress in recent years.

The Vietnamese market is witnessing a surge of Chinese electric cars since 2023, with five brands entering in just the past 12 months, covering all segments from mini cars to SUVs and MPVs.

The domestic automobile market bounced back in May after a month of low sales as manufacturers cut selling prices amid weak demand.

Vietnam witnesses a surge in imported cars, surpassing domestically assembled vehicles in recent months, prompting both consumers and manufacturers to anticipate forthcoming incentives.

Chinese companies face great challenges selling their cars in Vietnam.

If Chinese cars sell at low prices, Vietnamese consumers dislike the products, but if the manufacturers sell at high prices, Vietnamese consumers prefer Japanese, European and South Korean brands.

To maintain profits, auto importers and distributors have to increase retail prices.

Vietnam imported 43,805 cars worth US$929.4 million in the first quarter, down 19.4 percent in volume and 23.5 per cent in value year on year

BYD, a Chinese electric vehicle (EV) manufacturer, plans to enter the Vietnamese market in June. Whether it will be welcomed in the country remains an unknown.

The manufacturer has cut Mercedes cars’ suggested retail prices by VND210-719 million, and dealers have cut prices further.

Chinese automaker Chery's Omoda&Jaecoo and Vietnamese company Geleximco signed a joint venture agreement on April 4 in the northern province of Thai Binh to construct a US$800 million automobile plant.

The number of imported completely-built units (CBU) during the opening two months of the year was estimated to be at 16,452 with a value of over US$345 million, with the majority of cars being imported from the Indonesian market.

A detailed analysis of automobile buyer behavior, conducted by ABeam Consulting Vietnam, has revealed insightful patterns and preferences that are shaping the Vietnamese automobile market.

With the shortage of charging stations for electric cars, hybrid cars are proving to be a better alternative for now because they don’t require investment in infrastructure.

The increase in the number of electric vehicles from 138 units in 2019 to over 28,000 electric vehicles and 3,557 hybrid vehicles in September 2023 is a clear indication of the growing interest in these vehicles among consumers.