Registration fee reduction, which car brand do Vietnamese people buy the most?

In the first month of the registration fee reduction policy being applied, car purchasing power increased, in which domestically assembled Korean and Japanese cars priced under VND900 million were the most chosen by Vietnamese people.

In the context of the continuous decline in car purchasing power in the market, from July 2023, the preferential policy of reducing 50% of registration fees for domestically assembled cars was once again issued by the Government through Decree 41/2023/ND-CP. This is considered a policy to stimulate market demand, indirectly supporting domestic car assembly and manufacturing enterprises. After one month of application, this policy continued to help the car market grow but has not really met the expectations of car dealers in Vietnam.

Sales figures recently released by the Vietnam Automobile Manufacturers Association (VAMA) show that in July 2023, total car sales of VAMA members reached 24,687 vehicles, an increase of 887 vehicles, equivalent to 4% compared to June 2023.

Including the number of VinFast and Hyundai cars sold, the total number of new cars sold in Vietnam in July 2023 still decreased compared to June 2023.

Ba Hung

However, including the number of VinFast and Hyundai cars sold, the total number of new cars sold in Vietnam in July 2023 reached 31,764 cars, down 299 compared to June 2023. Even compared to July last year, car sales in July 2023 were still about 18% lower. This shows that despite support policies from the Government, car purchasing power in the actual market has not been able to recover as expected.

According to auto dealers, although the policy of reducing 50% of registration fees for domestically assembled cars has been applied, car purchasing power in general has not increased as expected. Many manufacturers and dealers even continue to apply discount incentives for imported cars, but due to the difficult economic situation, consumers are no longer as enthusiastic about shopping as in previous years, causing car sales to not improve much.

With the advantage of a diverse product portfolio, many domestically assembled car models enjoy preferential treatment. Korean car brands such as Hyundai, Kia and Japanese car brands such as Toyota, Mazda... continue to occupy leading positions in the sales race.

Specifically, Hyundai cars were the most chosen by Vietnamese people in July 2023 with 4,035 cars sold. This result helped Hyundai continue to consolidate its leading position in the Vietnamese automobile market. Toyota ranked second with sales of 3,813 cars. However, compared to the previous month, the consumption of Hyundai and Toyota cars both decreased by more than 1,000 cars. This comes from the fact that the models that are considered the main sales of these two brands such as Hyundai Accent, Hyundai Creta or Toyota Veloz, Toyota Vios all have a sharp decrease in sales.

Hyundai cars are the most chosen by Vietnamese people in July 2023

Ba Hung

The next two positions belong to Kia and Mitsubishi, both of which sold more than 3,500 vehicles in July 2023. In particular, with the appeal of the Xpander line, Mitsubishi's sales increased by 55% compared to June 2023. Ford and Mazda also sold more than 3,100 vehicles, but the growth was not significant compared to the previous month. Specifically, Ford only sold nearly 30 more vehicles than in June 2023, while Mazda's sales only increased by 14%.

The Vietnamese car company ranked 6th with sales of 3,042 vehicles. Of which, the consumption of the VinFast VF 8 electric car model decreased significantly, in return, the small car VinFast VF 5 Plus grew with 1,000 vehicles sold. However, VinFast's sales still decreased by 113 vehicles compared to June 2023. The remaining positions belonged to Honda with a growth rate of 13%, Suzuki increased by 22%.

Vietnamese car company - VinFast achieved sales of 3,042 cars

Ba Hung

In the past 7 months of 2023, Vietnamese people bought a total of nearly 209,000 cars of all kinds, but still about 30% lower than the same period last year. Currently, car manufacturers and dealers in Vietnam are still trying to reduce prices and offer incentives in the hope of continuing to improve car sales.

Detailed information about the most popular car brands in Vietnam

Source: VAMA, TC Motor, VinFast

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