Manual gearboxes disappear worldwide as Vietnam's car market pivots to SUVs

Manual transmissions, once the default in most cars, have become rare. In five major European markets (Germany, the United Kingdom, France, Italy and Spain) the share of cars with a manual gearbox fell from 91% in 2001 to 29% in 2024. In the United States the share dropped from 28% in 2001 to just 0.7% in 2024, remaining only on a few sports models and light trucks. The shift is driven by denser urban traffic, narrowing price gaps between manual and automatic units, growing electric‑vehicle adoption that eliminates multi‑speed gearboxes, and the ease of integrating driver‑assist technologies with automatic transmissions. A niche market for enthusiasts still exists.

In Vietnam, total new‑car registrations in the first five months of 2026 reached 283,606, up 20% year‑on‑year. Sedan sales continued to decline, falling to 11,214 units versus 13,965 a year earlier, making sedans the only segment with a sales drop. By contrast, SUVs sold 33,533 units (up 7,700), crossovers 14,237 (up 4,100) and MPVs 22,286 (up 2,800). Analysts attribute the shift to uneven road infrastructure, the need for higher ground clearance during floods, greater interior space for families and business use, and a broader range of affordable high‑riser models.