Vietnam vehicle sales drop 24% in October as EVs reshape the market

Vietnam's new vehicle market fell 24% to 28,957 units in October 2026, down from 37,910 units in the same month last year, according to data released by the Vietnam Automotive Manufacturers Association (VAMA). The figures cover retail sales by VAMA members plus imported-vehicle sales by non-members; they exclude locally assembled vehicles from non-members such as VinFast and Hyundai, which report separately.

The October drop landed despite strong macro signals. Government data show GDP growth accelerated to almost 10% year-on-year in the third quarter, up from an upwardly revised 8.8% in the second quarter, with all sectors performing strongly.

What does the monthly slump mean for the full year?

Not much, on the numbers so far. In the first ten months of 2026 the market grew 7.5% to 310,986 units, from 289,331 units a year earlier, on broad-based economic growth. Light passenger vehicle sales rose 5% to 212,107 units year-to-date, from 202,204 units. Commercial vehicles — trucks and vans, the segment most sensitive to freight and construction activity — climbed more than 13% to 98,879 units from 87,127 units.

The brand mix diverged sharply:

• Truong Hai (Thaco): group sales up 8% to 75,656 units, led by a 32% jump in Kia sales to 26,546 units. Mazda added 2% to 25,154 units, but Thaco-brand commercial vehicles fell more than 3% to 21,191 units.
• Toyota: up 8% to 60,110 units year-to-date.
• Mitsubishi: up 13% to 34,111 units.
• Ford: down 15% to 32,914 units.
• Honda: down 17% to 17,594 units.
• Hyundai: down 5% to 38,834 units.
• VinFast: domestic battery electric vehicle (BEV) sales surged 61% to 200,593 units over the ten months.

That last number reframes the whole market. VinFast's reported domestic BEV volume — 200,593 units against a combined VAMA market of 310,986 — shows how much of Vietnam's actual demand sits outside the VAMA tally. The October headline decline tells you less about the market than about which companies are counted.

Policy backs the EV shift

The Vietnamese government recently confirmed it will extend the current registration tax exemption and preferential consumption tax measures for BEVs, which were due to expire in February 2027, until 2030. That keeps the cost structure favoring electric models for another three-plus years and undercuts any case for a near-term revival of ICE-only strategies in the market.

What to watch next

GlobalData expects total light vehicle sales in Vietnam to rise 14% to 641,000 units this year, after 20% growth to 562,000 units in 2025, driven by continued strong economic growth and rising consumer demand. That forecast implies a heavy fourth quarter — watch whether the next two months' VAMA releases reverse October's slump, and whether the BEV tax extension, now confirmed to 2030, pulls further foreign OEM announcements into Vietnamese assembly or import plans.