However, despite price cuts ranging from tens to hundreds of millions of Vietnamese dong, consumer demand has remained sluggish.
Car dealers intensify price cuts across popular and premium models
At this time, car showrooms across Ho Chi Minh City appear quiet, with most visitors coming only for maintenance services.
At the Hyundai showroom in Thoi An Ward, many new vehicles remain unsold in the lot. Sales representative Duong Thi Hien tried to persuade a potential buyer to consider it as the price cuts this fourth quarter are quite good. Buying now is perfect for family trips during the upcoming holiday and Tet season.
Meanwhile, sales manager Dao Thanh at a car showroom in Hiep Binh Ward said that purchasing activity remains subdued as consumers are cautious amid economic challenges, high interest rates, and expectations of further price reductions toward the end of the year.
“Many dealerships are being forced to offer steep discounts, even sacrificing profit margins, to clear inventory and maintain cash flow,” Dao Thanh explained.
To stimulate sales, several automakers have launched aggressive promotions in specific segments. Toyota and its dealers continue to offer 50 percent–100 percent registration fee reductions on several models.
The best-selling Toyota Vios currently receives a full 100 percent registration fee discount. The Vios is listed at VND458 million (US$17,471), VND488 million, and VND545 million for its three variants including 1.5E MT, 1.5E CVT, and 1.5G. This means that buyers can save approximately VND46 million–VND54 million depending on the dealership.
Honda City is currently offered with a 100 percent reduction in registration fees, equivalent to VND50 million–VND57 million. This brings the actual selling price of the standard version down to VND449 million, the mid range City L to VND485 million and the top-tier City RS to around VND510 million.
Hyundai dealers are also slashing prices; for instance, the Accent, listed at VND439 million–VND569 million before, is now available for VND389 million–VND519 million. The Hyundai Stargazer receives a direct VND50 million discount, lowering its price range to VND439 million–VND549 million.
In the MPV segment, Mitsubishi Xpander is discounted by 50 percent–100 percent of registration fees. The Xpander Cross, originally priced at VND699 million , is reduced by VND70 million to VND629 million, while the Xpander AT Premium drops to VND593 million.
Chinese brands are joining the race. Geely announced promotions for all three distributed models—Coolray, Monjaro, and EX5—offering 50 percent registration fee support plus two years of body insurance. Lynk & Co, also under Geely, provides 100 percent registration fee support for the 01 Hyper and 01 versions, equal to VND92 million–VND100 million in savings.
MG dealers are aggressively clearing 2024 stock, with the MG HS (C-segment SUV) discounted by up to VND150 million. Other models such as MG5, ZS, HS, and MG4 EV receive registration fee support or gifts, with incentives ranging from VND10 million–VND50 million depending on the version.
Not only mass market cars, but premium models are also seeing deep cuts. The Honda CRV e:HEV RS is reduced by VND150 million to VND1.1 billion; Subaru Outback drops VND400 million to VND1.7 billion, Volkswagen Teramont is down VND350 million to VND1.79 billion and the Mercedes Benz E300 AMG sees the steepest cut of about VND700 million bringing its price to just over VND2 billion.
Inventories pile up
Vietnam’s auto industry faces mounting challenges as inventories pile up and consumer demand weakens, pushing major dealers into losses. Haxaco (Hang Xanh Automobile) has reported third‑quarter 2025 revenue of VND1,149.5 billion, down 25 percent year‑on‑year. With cost of goods sold at nearly VND1,090 billion, gross profit fell sharply to VND59.7 billion—a 66 percent drop from the same period last year.
Gross margin narrowed from 11.3 percent to 5.2 percent, reflecting price cuts to stimulate demand or higher import costs amid a sluggish market. Rising expenses pushed Haxaco into a pre‑tax loss of VND24.2 billion, compared with a profit of VND113 billion in Q3‑2024.
Similarly, Giai Phong Automobile JSC posted another quarterly loss, bringing cumulative losses to nearly VND357 billion as of September 30. Net revenue in Q3 reached just VND52 billion, with gross profit at VND983 million—insufficient to cover financial, sales, and administrative costs. The company recorded a net loss of almost VND2 billion, marking its 11th consecutive losing quarter since early 2023. Inventory surged to more than VND28 billion, 2.3 times higher than at the start of the year.
Nationwide, auto inventories are estimated at nearly 150,000 units. Despite weak consumption, manufacturers continue importing new vehicles, intensifying price‑cutting pressure. According to Pham Quang Thang, Sales Director of Hanoi Automobile JSC, the market slowdown stems from economic difficulties and new regulatory adjustments. He noted that automakers still expect growth in Vietnam, while demand in other Southeast Asian markets has cooled, prompting more vehicles from Thailand and Indonesia to be redirected to Vietnam.
Auto consultant Le Anh Tuan warned that without strong stimulus packages, 2025 sales may hover around 520,000–540,000 units—flat or lower than 2024. However, he highlighted electric and hybrid vehicles as a bright spot, with projected growth of 40–50 percent thanks to government registration fee incentives, manufacturer policies, and rising consumer interest in green mobility.
