Domestic car output surges 52 per cent but demand yet to fully recover

Domestic car output surges 52 per cent but demand yet to fully recover

According to the General Statistics Office, the total car supply, including both locally produced and imported, totalled roughly 500,000 as of September.

Car production at a VinFast plant in Hà Tĩnh. Many brands, including VinFast, plan to launch or refresh models in the final quarter of the year to spur demand ahead of the Lunar New Year holiday.. — VNA/VNS Photo Công Tường

Domestic automakers produced more than 338,400 units in the first nine months of this year, registering an increase of 52.7 per cent the same period in 2024 which highlighted strong recovery even with sales growth still to fully recover.

According to the General Statistics Office, the total car supply, including both locally produced and imported, totalled roughly 500,000 as of September.

Of the figure, imports totalled more than 156,000 worth US$3,41 billion, up 24.8 per cent in volume and 33.3 per cent in value.

In September alone, Việt Nam added nearly 60,000 vehicles to the market, up 5.4 per cent from August.

Despite the increase in supply, consumption has yet to keep pace.

The Việt Nam Automobile Manufacturers' Association (VAMA) reported that its members sold 30,688 vehicles of all types in September, up 18 per cent from August but down 16 per cent year-on-year.

Industry insiders viewed the growth as a sign that the auto sector is regaining momentum after a sluggish first half of the year, with consumer demand picking up ahead of the year-end shopping season.

By the end of September, total VAMA sales reached 251,421 vehicles, up 11.5 per cent year-on-year.

The recovery in demand is still slower than expected, industry experts said, forcing carmakers to roll out productions and discounts to boost sales.

Many brands, including VinFast, Mitsubishi, Skoda, Hyundai and Kia, plan to launch or refresh models in the final quarter of the year to spur demand ahead of the Tết (Lunar New Year) holiday.

An analyst said that the fourth quarter is traditionally a peak season for car sales, but this year’s price competition is the fiercest in years because abundant supply and high inventory levels are keeping prices under pressure.

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