According to the General Statistics Office, an arm of the Ministry of Finance (MOF), May 2025 saw an estimated 56,200 new cars added to the Vietnamese market, including both domestically produced and imported vehicles. This figure reflected a slight 0.7 percent decrease from April (56,614 units).

Domestic car production in May reached about 37,700 units, down 0.5 percent from April’s 37,900 but up 54.6 compared to May 2024. From January to May 2025, domestic manufacturers put out 183,400 vehicles, a 70.3 percent increase year-on-year, reflecting strong efforts by local producers.

Imports saw an estimated 18,500 vehicles in May, valued at $426 million, down 1.1 percent in volume but up 0.7 percent in value from April. Compared to May 2024, imports rose 24.1 percent in volume and 38 percent in value. 

Over the first five months of 2025, 83,495 vehicles were imported, valued at $1.828 billion, up 41.3 percent in volume and 47.7 percent in value from the same period in 2024. 

The figures showed that car importers tend to import more valuable products.

June 2025 has seen a fierce promotion race among mainstream brands. Toyota has offered a 50 percent registration fee support for Vios, Yaris Cross, and Corolla Cross, with Veloz and Avanza up to 100 percent. Honda provides a similar 50 percent fee support for City, Civic, CR-V, BR-V, and HR-V.

Another Japanese brand, Mitsubishi, has focused on steep discounts for Xpander and Xforce, offering 50 percent registration fee waivers plus fuel vouchers worth over VND20 million.

Meanwhile, Nissan has cut 50–100 percent of registration fees for Almera and Navara, while Ford fully has covered fees for Ranger and Territory, adding lucky draw programs with prizes up to VND100 million.

Hyundai, facing sharp sales declines since early 2025, has offered up to 100 percent registration fee waivers from March to June, primarily for 2024 VIN models, through TC Motor.

Despite these promotions, dealers face intense pressure from sales targets and unsold inventory. Many showrooms are unusually quiet, with some new salespeople quitting their job due to unmet quotas.

“New car prices are at an all-time low, but customers are scarce. We often just chat to pass the time. Veteran staff with loyal clients are barely holding on, focusing on online sales,” said Xuan Quy, a salesperson for a Korean brand in Hanoi.

End of deep discounts?

May marked the second consecutive month of a slight decline in new car supply after peaking in March. This is unsurprising as many brands and dealers are grappling with high inventories. Most car manufacturers are offering big discounts to attract customers.

In this context, domestic and imported car brands have had to adjust production capacity to ensure supply, while avoiding excessive inventory buildup. 

Marketing expert Nguyen Van Phuong told VietNamNet that the recent supply slowdown in the last two months may signal a tighter market, but with a 70 percent year-on-year increase in new vehicles, supply still outpaces demand, which remains stagnant. 

He believes the market will remain challenging, making price hikes unlikely.

"I think at this time, the domestic car market is still very difficult, and that car prices are unlikely to increase further," said Phuong.

Phuong also noted that in June and July many car manufacturers plan to launch new products, requiring a large enough quantity of goods to launch. Therefore, manufacturers have had to maintain stable production and import volumes to ensure coverage.

Experts said that the supply of cars has only decreased slightly, about 2-3 percent, but the actual demand could decrease sharply by 10-15 percent compared to previous months. The imbalance has forced manufacturers and dealers to slash prices to stimulate demand.

This trend is forecast to continue for at least the next 2-3 months, even lasting until the end of the 7th lunar month, the lowest sale season of the year. Customers who have available finances and real needs will benefit the most when they can buy cars at preferential prices with many attractive after-sales policies.

Hoang Hiep