HÀ NỘI — Việt Nam's car market witnessed an aggressive wave of price cuts in May, marking a significant shift in strategy as automakers responded swiftly to declining sales in April. The unprecedented discount race has opened a golden opportunity for consumers to purchase new vehicles at highly attractive prices.

SUVs and CUVs lead discount drive

After a challenging April, major car brands launched a series of deep discounts and promotional campaigns in May. Toyota offered 50 per cent support on registration fees for several models such as Vios, Veloz Cross and Avanza Premio, resulting in direct savings of VNĐ23-46 million. Buyers also receive a complimentary three-year maintenance package.

Honda followed suit, applying a 50 per cent registration fee cut to key models such as the City, CR-V, Civic and BR-V, with discounts ranging from VNĐ30 million to VNĐ70 million depending on the car. Other major players like Mazda, Kia and VinFast also entered the price-cutting race, launching various support programmes and incentives to draw in customers.

Beyond price reductions, dealerships are enhancing competitiveness by offering low-interest installment loans, trade-in support for older vehicles and complimentary after-sales services.

Among all vehicle segments, five-seat and seven-seat SUVs are seeing the steepest price drops. These models have surged in popularity due to consumer preferences for versatile, multi-functional vehicles. Most of the deeply discounted cars are either 2024 models or expected to be replaced by newer versions soon.

The Hyundai Santa Fe has emerged as a standout, with discounts reaching nearly VNĐ200 million, reducing the base version's price to around VNĐ1 billion — an appealing offer compared to its launch price. The Kia Sorento was also heavily discounted by VNĐ55-80 million, strengthening its position in the competitive SUV market.

Other notable deals include the Mazda CX-5 and Ford Territory, which saw price reductions between VNĐ35 million and VNĐ90 million. Meanwhile, the Subaru Forester surprised consumers with a jaw-dropping discount of up to VNĐ230 million, making it more accessible for budget-conscious buyers.

Seven-seat SUVs like the Isuzu mu-X, Mitsubishi Pajero Sport and Ford Explorer also received significant incentives ahead of the release of the newest versions, intensifying competition while delivering substantial value to consumers.

According to the Vietnam Automobile Manufacturers Association (VAMA), automobile sales in April fell to approximately 24,800 units, down nearly 12 per cent year-on-year, marking the lowest monthly sales figure in the past few years.

The decline is attributed to ongoing economic instability, cautious consumer behaviour and a widespread tendency to delay purchases in anticipation of deep discount programmes rolled out in May, VAMA said. 

Market analysts note that unlike in previous years, Government policies such as tax breaks and registration fee support — once key drivers of demand — are no longer in effect. This has led to an increase in the total cost of vehicle ownership, further dampening consumer interest. Additionally, persistently high interest rates on auto loans have made car purchases less accessible, especially for middle-income buyers.

In response to these challenges, car manufacturers and dealerships have swiftly launched large-scale promotional campaigns to reignite demand. These initiatives include aggressive price cuts, attractive financing options, free insurance packages, and expanded after-sales services. The goal is to stimulate market activity and sustain purchasing power through the months to come.

Price cuts to drive market recovery in H2

Industry analysts believe that the sweeping price cuts and demand-stimulus measures introduced earlier this month are critical steps to revitalise Việt Nam’s auto market following a prolonged period of sluggish sales. These initiatives are expected to lay the groundwork for renewed growth momentum in the third quarter and toward the end of the year.

If the Government reintroduces preferential registration fee policies similar to those seen in previous years, car purchasing power will see a strong rebound in the remaining months of 2025, which would better facilitate automakers, analysts said. 

For consumers, they said, this is a rare opportunity to purchase new cars at reasonable prices, especially focusing on the popular SUV and CUV segments, along with flexible loan conditions and attractive after-sales incentives from individual manufacturers and dealers. — VNS