Auto sales in Vietnam are expected to grow only 5% to exceed 500,000 units in 2023, according to Saigon Securities Inc.
The brokerage house (SSI) said in its report that chip shortages and supply chain disruptions are unlikely to affect the market in the second half of this year.
“Electric vehicles have the potential to create a breakthrough for the automotive industry in Vietnam,” it forecast.
The broker cited that in 2022, Audi and Mercedes-Benz officially announced a number of electric models for the luxury car segment in Vietnam. In the popular vehicle segment, Hyundai and Kia both introduced electric models namely IONIQ5 and EV6.
Total sales of Vietnam Automobile Manufacturers’ Association members, excluding VinFast and Hyundai, increased 33% year-on-year to 404,635 in 2022.
They included 316,941 passenger cars, up 48% year-on-year; 82,714 commercial vehicles, down 1.5%; and 4,980 special-purpose vehicles, down 14%.
The number of completely knocked down vehicles hit 226,487, up 30%; and that of completely-built-up units reached 178,148, up 37%.
Last year, Toyota was the best seller with 91,115 units, or 25.4% of the total; followed by Mitsubishi with 39,861, or 11.1%; and KIA and Mazda cars made by domestic firm Thaco with 60,729 and 36,052 (17% and 10.1%), respectively.
Other top players were Honda with 30,645 (8.6%), and Ford with 28,847 (8.1%).
Vietnamese electric vehicle maker VinFast delivered 4,278 units in December last year, seven times higher than the previous month, including 2,730 VF 8 and 1,548 VF e34 models.