Business

Hybrid car sales surge 72% in July on new environemental policy

Notably, the hybrid segment recorded the strongest growth, with 7,112 units sold, a 72% year-on-year increase. The figures reflect a shift in consumer preference towards more environmentally friendly vehicles.

Kia New Carnival, a hybrid car model of THACO Auto (Photo: VNA)
Kia New Carnival, a hybrid car model of THACO Auto (Photo: VNA)

Hanoi (VNA) – The Vietnam Automobile Manufacturers’ Association (VAMA) reported on August 12 that total sales by its members reached 31,739 units in July, down 1% compared with the previous month.

Notably, the hybrid segment recorded the strongest growth, with 7,112 units sold, a 72% year-on-year increase. The figures reflect a shift in consumer preference towards more environmentally friendly vehicles.

Hybrids are seen as a transitional choice between conventional petrol and diesel cars and fully electric vehicles, meeting demands for fuel efficiency and lower emissions.

Of the total July sales, passenger cars remained the largest segment with 22,929 units, though this was down 3% month on month. Commercial vehicles reached 8,805 units, up 0.3%, while special-purpose vehicles rose sharply to 642 units, an increase of 146%.

By origin, locally assembled vehicles accounted for 15,701 units, up 9%, while fully built imported vehicles totalled 16,038 units, also up 9%. This marked the fifth consecutive month in which sales of imported vehicles by VAMA members outpaced those of domestic assembly.

In the first seven months of 2025, VAMA members sold 194,760 vehicles, an 18.9% increase year on year. Passenger car sales grew 17%, commercial vehicles 25%, and special-purpose vehicles 24% compared to the same period in 2024.

However, these figures do not represent the entire Vietnamese automobile market, as several major brands, such as Audi, Jaguar Land Rover, Mercedes-Benz, Nissan, Subaru, Volkswagen, Volvo, do not disclose their sales data. In particular, VinFast and Hyundai, both with substantial market share, have yet to release figures.

Industry experts attribute the slight overall decline in July sales to a combination of economic factors, interest rates, and tax and fee policies. They also point to the impact of Directive 20/CT-TTg issued by the Prime Minister, which outlines urgent measures to curb environmental pollution.

The directive sets a roadmap to restrict and eventually ban fossil-fuel-powered vehicles in major urban areas, prompting more cautious buying behaviour, particularly for petrol and diesel models. As a result, many customers are delaying purchases while awaiting policies supporting a shift to electric vehicles. Meanwhile, dealers are adjusting strategies by clearing existing petrol-powered stock and limiting new imports, contributing to the slight market-wide dip in sales./.

VNA
#Vietnam Automobile Manufacturers’ Association #environemental policy #hybrid cars #Vinfast #Hyundai
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