Vietnam car market grapples with surging inventory and scarce new models

Vietnam's automotive sector is facing a large backlog of unsold vehicles, with estimates of 170,000‑200,000 cars awaiting buyers. In the first four months of the year, domestic manufacturers shipped about 178,000 units and imports added roughly 73,000, creating a total supply of around 400,000 vehicles. By contrast, sales covered only about 101,000 cars, or roughly 200,000 when including non‑VAMA members Hyundai Thành Công and VinFast, indicating that only about half of the available stock has been sold.

Dealers are under pressure to move inventory, resorting to deep discounts equivalent to up to 100% of registration fees, amounting to tens or hundreds of millions of dong per vehicle. Consumers are waiting for further price cuts before committing to purchases. The market saw very few new launches this year – mainly Toyota's new‑generation Hilux pickup and Honda's locally assembled CR‑V – and the annual Vietnam Motor Show was postponed due to the lack of fresh models. Additionally, a shift toward electric and greener vehicles is eroding demand for gasoline‑powered cars, further challenging traditional dealers.

Industry insiders note that the weak purchasing power, tighter consumer loan approvals, and stricter emission regulations are exacerbating the slowdown. Companies are now focused on clearing old stock before introducing new products, hoping market conditions improve.