Vietnam automotive market sees hybrid growth and inspection trends

Hybrid vehicle sales in Vietnam have seen significant growth, driven by favorable tax policies. In July 2026, hybrid sales reached 1,636 units, a 38% increase compared to the same period last year. This surge is attributed to special consumption tax incentives introduced at the start of 2026, which set hybrid tax rates at only 70% of equivalent internal combustion engine models. Major models such as the Corolla Cross Hybrid and Innova Cross Hybrid have seen hybrid versions significantly outselling their gasoline-only counterparts.

Separately, the Vietnam Register reported that 504,198 vehicles failed their initial technical and environmental inspections during the first eight months of 2026. This represents 12.2% of the 4,122,422 total vehicles inspected. While the failure rate has decreased compared to 2025, common issues leading to inspection failures include problems with braking systems and electrical lighting.