Car price war intensifies amid record supply surge
Car price war intensifies amid record supply surge
Vietnam’s auto market is seeing record supply growth in 2025, but weak demand is driving fierce competition and deep discounts across the industry.
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According to the latest report from the National Statistics Office under the Ministry of Finance, an estimated 56,971 new vehicles – including both domestically produced and imported units – entered the Vietnamese market in September, marking a 5.4 per cent increase from August.
Domestic output reached 38,700 units in September, the second-highest monthly volume of the year, only behind June, marking a 2.4 per cent increase over August and a 19.7 per cent jump on-year.
In the first nine months of 2025, domestic manufacturers rolled out about 338,400 vehicles, surging 52.7 per cent on-year. This sharp growth highlights the expanded production capacity and aggressive push by carmakers.
Imports also continued to climb. September saw 18,271 completely built units arrive in Vietnam, worth $402 million, up 12.3 per cent in volume and 10.7 per cent in value from August. For the January–September period, imports totalled 156,092 units, valued at $3.42 billion, representing increases of 24.8 per cent and 33.3 per cent respectively compared to the same period last year.
However, the surge in supply contrasts with slower-than-expected consumption. The widening gap between production and sales has triggered a sweeping wave of promotions, as companies seek to clear inventory and stimulate demand for new models.
Price cuts have spread across the board, from mass-market to premium brands, covering Japanese, Korean, Chinese, and European models alike. Even bestsellers such as the Mazda CX-5, Mitsubishi Xpander, Ford Ranger, and Ford Everest are offering heavier incentives to maintain their market share.
"The current price war is unprecedented in scope. Even leading models are being offered with steep discounts, showing how urgent the pressure is to clear inventories," said Tran Minh Hoang, an independent automotive analyst in Ho Chi Minh City.
As the market enters the final quarter when traditionally the peak shopping season ahead of Lunar New Year, analysts predict the discount race will persist. Strong supply and inventory pressure will keep competition intense, even as consumer demand gradually picks up.
For buyers, this creates an unprecedented opportunity to purchase vehicles at favourable prices. For carmakers, however, sustaining growth will require more than promotions. A longer-term strategy balancing supply and demand will be crucial to avoid overreliance on discounts.
- 15:23 10/10/2025
