Automotive markets face regional shifts in Vietnam and China

The automotive market in Vietnam experienced a significant downturn in August, with total sales dropping 17% compared to July to 48,484 units. Industry representatives attribute this decline to the traditional psychological avoidance of expensive purchases during the seventh lunar month, known as 'Tháng Ngâu'. Despite this monthly dip, cumulative sales for the first eight months of 2026 rose 26.4% year-on-year, totaling 432,548 vehicles. VinFast led this growth with a 71% increase in sales, reaching 154,073 units.

In China, the automotive industry faces a growing crisis as consumer complaints outpace sales growth. Data from the 12365auto platform shows that while retail sales grew only 3.9% in 2025, valid complaints rose by 31.6%. Experts suggest that intense price wars and overcapacity are forcing manufacturers to squeeze supplier margins, leading to a decline in component quality. Additionally, extended payment terms for suppliers—averaging 182 days—are putting further strain on the automotive supply chain.