Automotive markets in Vietnam and South Korea see growth

The automotive industry is seeing significant shifts across Asia. In Vietnam, the market experienced a recovery in July with 59,031 vehicles sold, a nearly 12% increase from June. This growth is driven by aggressive price competition and promotions from manufacturers like VinFast, Hyundai, and Subaru to stimulate demand. VinFast reported a record 137,697 vehicles delivered in the first seven months of the year, a 74.2% year-on-year increase.

In South Korea, July automotive exports reached a record high of $6.238 billion, a 7% increase from the previous year. This surge was primarily fueled by strong demand for eco-friendly vehicles and SUVs in North American and European markets. Specifically, eco-friendly vehicle exports rose by 28.6%, with electric and hydrogen vehicles seeing substantial growth.

Meanwhile, VinFast is expanding its footprint in India. A second-generation VF 5 electric SUV has been spotted undergoing testing in Bengaluru. This compact electric model is expected to compete in India’s high-volume sub-4-meter segment against established models from Tata and Mahindra.