Sales volume of cars in Vietnam 2014-2022

In 2022, the total sales volume of vehicles in Vietnam amounted to approximately 358 thousand units, reflecting an increase from the previous year, likely due to the recovery of the Vietnamese economy post COVID-19. Meanwhile, passenger vehicles sales, accounting for the largest share of the total sales volume, reached 284 thousand units in that year. Having suffered from the COVID-19 pandemic in 2020 and 2021, the total sales volume of passenger cars is expected to recover and grow within the next few years.

Vietnam’s emerging automobile industry

In Vietnam, the low car ownership rate did not reflect consumers’ interest in owning a car. Automobiles, regarded as a major investment for Vietnamese households, appeal to the majority of consumers because of their convenience, safety, and comfort. Moreover, cars also symbolize success and wealth among Vietnamese consumers. With rising car demand, in line with the country’s fast-growing middle-class, Vietnam’s dynamic automotive landscape seems to have a bright outlook.

The future of electric vehicles (EV) in Vietnam

Among Vietnamese consumers, the share of electric cars in terms of ownership remains minimal. While the lack of EV charging stations and high initial purchase costs may have deterred consumers from investing in such a car, many Vietnamese would consider purchasing one because electric vehicles offer an environmental-friendly and long-term cost-effective solution. According to consumers, government incentives, such as tax rebates, subsidiaries, and policies regarding electric cars, as well as investment in EV infrastructure, would potentially also encourage EV consumption.