Vietnam automotive market 2026

In July 2026 Vietnam’s car market posted a 29 % increase in registrations, led by Japanese brands such as Toyota, Mazda and Mitsubishi, which supplied most of the top‑selling models. The growth was driven by strong demand for conventional vehicles, while global manufacturers grappled with the difficulty of turning cars into software‑centric platforms – exemplified by Ford’s cancellation of a multibillion‑dollar fully‑networked vehicle program.

A week later, the same market showed a dramatic shift toward electrification. Battery‑electric vehicle registrations surged 628 % since 2022, reaching more than 175,000 units and accounting for almost 30 % of all new‑car sales. The boom was powered by domestic producer VinFast and reinforced by government incentives that waived registration fees and lowered special consumption taxes. At the same time, sales of internal‑combustion‑engine cars declined before stabilising, highlighting a rapid transition from traditional to electric mobility in Vietnam.