Vietnam’s automobile market saw a sharp increase in supply in March, with both domestically manufactured and imported vehicles rising significantly. Analysts predict that the ongoing oversupply will drive car prices down to record lows in the coming months.

According to newly released data from the General Statistics Office, an estimated 58,075 new vehicles-including both locally assembled and imported cars-were added to the Vietnamese market in March 2025. This marks a 17.2% increase compared to February’s total of 49,571 units.

Of that total, domestic car production reached around 36,700 units, up 15% month-on-month and an impressive 63.6% year-on-year. In the first quarter of 2025, Vietnamese automakers produced approximately 106,400 units, a surge of 81.5% compared to Q1/2024.

Meanwhile, car imports also grew robustly. Approximately 21,375 completely built-up (CBU) vehicles were imported in March, with a total estimated value of USD 445 million, representing a 21% month-on-month rise. Compared to March 2024, imports increased 34.8% in volume and 34.6% in value.

In Q1/2025, Vietnam imported an estimated 46,207 CBU vehicles, worth about USD 983 million, a year-on-year growth of 43.5% in quantity and 45.9% in value.

The spike in both domestic production and car imports was largely anticipated, as manufacturers typically ramp up production after the Lunar New Year holiday. Additionally, many automakers are preparing to launch new models in Q2, requiring large inventories ready for market release.

Industry experts believe that this abundant supply, combined with ongoing massive discounts in early Q2, will likely push car prices even lower in the near future.

Hoang Hiep