Chinese and Japanese automakers launch fierce promotional battle in Vietnam

From late March to early April 2026, multiple Japanese automakers launched price-cut promotions in Vietnam. Subaru offered discounts ranging from VND 278 million to VND 308 million on all variants of the 2024 Forester. Toyota waived 50% of registration fees for the Vios and Yaris Cross, reducing their on-the-road prices by VND 23–27 million, and provided 100% registration fee waivers for MPVs like the Veloz Cross; combined with insurance and loan interest incentives, customers could save up to over VND 110 million. Honda offered 50% registration fee discounts on models including the City, CR-V, BR-V, and HR-V. Mitsubishi gave fuel vouchers worth VND 53–57 million to buyers of the Xpander or Xpander Cross, while Suzuki introduced free maintenance packages lasting up to 6.5 years. In May, promotional efforts intensified further. Mitsubishi rolled out discounts across most of its lineup, including the Attrage and Triton, with the Xpander AT variant offering savings of up to VND 85 million. Lexus reduced official prices for its hybrid models: the LS 500h dropped by VND 360 million, and the six-seater LM 500h by VND 320 million. Chinese brands also joined the promotional fray during this period. BYD launched its “Golden Sun Festival” campaign from May through the end of June, covering seven models and offering up to 100% pre-registration fee subsidies. The SEAL 5 hybrid sedan qualified for nearly VND 70 million in registration fee subsidies, while the 2026 Dolphin was expected to be priced below VND 600 million—significantly lower than the previous model’s VND 659 million. Geely and other Chinese brands also competed through financing schemes and gift offers. This wave of promotions comes amid a continued decline in Japanese brands’ market share in Vietnam. According to data from the Vietnam Automobile Manufacturers’ Association (VAMA), domestic Vietnamese brands collectively captured 33.5% of the market in 2025—surpassing Japanese brands’ 32.9% for the first time. Toyota sold 71,954 vehicles in 2025, with its market share falling to 19.2%. In February 2026, VAMA member sales dropped 48% month-on-month, with Mitsubishi, Lexus, and Honda declining by 60%, 78%, and 61%, respectively. The accelerating entry of Chinese brands has intensified competition. In January 2026, Vietnam’s total imported vehicle volume surged 110% year-on-year, with Chinese brands accounting for 44.3%. In full-year 2025, China’s automotive exports to Vietnam reached USD 1.6 billion—a 76% increase—making China the top exporter to Vietnam by value, surpassing Indonesia and Thailand for the first time. Brands such as BYD, Geely, Lynk & Co, and Chery have launched multiple electric and hybrid models in Vietnam. In the commercial vehicle segment, Chinese trucks hold over 58% market share, and specialized vehicles account for 98%. Vietnam’s homegrown automaker VinFast has also risen rapidly. In 2025, it delivered 175,099 vehicles domestically, ranking as the top-selling single brand for 15 consecutive months. Its key models—the VF3, VF5, and VF6—delivered 44,585, 43,913, and 23,291 units, respectively. In December 2025 alone, VinFast delivered 27,649 vehicles, setting a new record for monthly deliveries in Vietnam’s automotive industry. High fuel prices and supportive policies are driving the market’s shift toward electrification. In March 2026, Vietnam’s RON 95 gasoline price rose to VND 33,840 per liter—up 68% from February—and diesel prices doubled. The government has extended the exemption from registration tax for battery electric vehicles (BEVs) until the end of February 2027 and implemented a 30% reduction in special consumption tax for hybrid electric vehicles (HEVs). In February 2026, HEV sales reached 1,119 units—up 23% month-on-month—and accounted for nearly 6% of VAMA members’ total sales, compared to less than 2% two years earlier. Toyota’s HEVs alone sold 709 units that month—triple the prior month’s figure. Against this backdrop, Japanese brands are using promotions to stabilize sales. In February 2026, Toyota Vietnam delivered 3,935 vehicles to end-users—a 25% year-on-year increase—with hybrids making a significant contribution. However, the long-term impact of these price cuts on brand premium and dealer profitability remains to be seen.