Vietnam’s auto sales jumped 22% in 2025, closing the gap with Thailand. Discover the drivers behind the boom and what lies ahead. Read more now!
In 2025, Vietnam’s automotive landscape transformed dramatically, posting a 22% year‑over‑year increase in vehicle registrations. The surge brings the country within striking distance of Thailand, traditionally the region’s second‑largest car market after Indonesia.
2025 Sales Snapshot
Regional sales figures reveal a mixed picture:
- Indonesia remains the leader with 833,692 cars sold (‑4% YoY).
- Malaysia follows closely, delivering 820,752 vehicles.
- Thailand recorded 621,166 units, a margin of just 17,000 cars above Vietnam.
- Vietnam reached 604,134 vehicles, the fastest growth rate among the six major Southeast Asian markets.
What Fueled Vietnam’s Leap?
The boom is anchored by two key forces:
- Electric vehicle (EV) adoption. VinFast alone shipped a record 175,099 EVs in 2025, doubling its 2024 output.
- Hybrid model expansion. According to the Vietnam Auto Manufacturers Association (VAMA), 14,171 hybrids were sold, a 44% rise over the previous year.
Electric and Hybrid Momentum
Japanese and Korean manufacturers are accelerating hybrid roll‑outs, setting the stage for sustained growth in 2026. Notable developments include:
- Honda will commence local assembly of the hybrid CR‑V at a new Vietnamese plant from 2026, shifting away from imports.
- Toyota plans a US$360 million investment to expand hybrid production lines beginning in 2027.
- Chinese brands such as Omoda and Jaecoo are fast‑tracking factory construction to tap the expanding market.
Domestic Production Gains Ground
Vehicle output in Vietnam rose to approximately 484,500 units in 2025, a 25% increase from the prior year. This scaling of local assembly delivers several benefits:
- Reduced reliance on imports, enhancing supply‑chain resilience.
- Lower production costs that can translate into more competitive pricing for consumers.
- Creation of thousands of jobs across machining, electronics, and after‑sales services.
Economic Ripple Effects
Cross‑border component suppliers are gaining deeper access to global value chains, bolstering Vietnam’s GDP contribution from the automotive sector. Rising disposable incomes and heightened environmental awareness are also shifting consumer preferences toward cleaner, energy‑efficient vehicles.
Looking Ahead to 2026
While Thailand still leads with over 1.4 million cars produced annually, Vietnam’s trajectory suggests it could overtake the Thai market to become the third‑largest automotive hub in Southeast Asia. The coming year will test the sustainability of this growth, with government incentives, expanded charging infrastructure, and continued foreign‑direct investment playing pivotal roles.
For investors, manufacturers, and policy makers, Vietnam is evolving from a promising sales destination into a critical node of regional car production.