25 September 2026, 17:20 UTC

Vietnam Overtakes Singapore as ASEAN-6's Fastest-Growing Auto Market

Vietnam's auto sales grew 31.1% in the first half of 2026, overtaking Singapore to lead growth among the ASEAN-6 markets, according to PwC. Electrified vehicles outsold combustion models in Vietnam for the first time, with VinFast delivering nearly 40% of total market sales.

Vietnam Overtakes Regional Peers

Vietnam's automotive market posted the fastest sales growth among the ASEAN-6 economies in the first half of 2026, according to the sixth edition of PwC's ASEAN-6 Automotive Market Overview report. Vietnam overtook Singapore to lead the six-country group, which also includes Indonesia, Thailand, Malaysia and the Philippines, with sales rising 31.1% to roughly 291,000 vehicles — nearly three times the regional average growth rate of 11.1%. The ASEAN-6 group as a whole sold between 1.755 million and 1.76 million vehicles in the period.

Other markets posted more moderate gains: Indonesia grew 15.9%, Thailand 15.1%, Singapore 6.9% and Malaysia 2.6%. The Philippines was the only market to contract, down 6.1%. The shift marks a reversal from 2024-2025, when Singapore held the top growth position and Vietnam ranked second with growth consistently above 20%. Despite leading on growth, Vietnam remains the fourth-largest ASEAN-6 market by volume, behind Indonesia (437,000 vehicles), and Thailand and Malaysia (385,000 each), but ahead of the Philippines (226,000) and Singapore (31,000).

Electrified Vehicles Overtake Combustion Models

Electrification is driving the regional and Vietnamese shift. Electrified vehicles — battery electric and hybrid models combined — accounted for 32% of ASEAN-6 sales in the period, more than double the 14% share recorded in 2024. Chinese brands captured 47% of the region's electrified-vehicle sales, while VinFast led among individual brands, ahead of BYD and Toyota.

In Vietnam specifically, electrified vehicles outsold internal-combustion models for the first time, reaching about 127,000 units versus 118,000 for combustion vehicles — a 52% share of the passenger-vehicle segment. PwC attributed the shift to strong demand from transport and fleet operators, an 83% jump in hybrid sales, and the arrival of more affordably priced models. VinFast's VF3 and VF5 expanded the mainstream SUV segment, while the fleet-oriented Limo Green became the best-selling model of the period.

VinFast Dominates a Fast-Growing Import Market

VinFast delivered 115,916 battery electric vehicles in Vietnam, equal to 91% of the electrified segment and close to 40% of total market sales.
Toyota followed with 35,410 units, Hyundai with 25,069, Mitsubishi with 21,653 and Ford with 21,232.
Across the ASEAN-6 region, Toyota led overall brand rankings, followed by Perodua, VinFast, Mitsubishi and Honda.

Vietnam's import demand rose 23%, with China the fastest-growing source of imports by value. Tesla registered a legal entity in Vietnam in September 2026, though it has not disclosed operating plans. PwC's Mohammad Mudasser, Deputy General Director of Deal Advisory – Transformation Services, said the market is entering a more mature phase in which electric vehicles are shifting from an early-adopter choice to a practical one, with future leadership determined by charging infrastructure, financing options and after-sales service. VinFast's charging network currently comprises about 150,000 charging ports nationwide, while other companies are expanding investment in high-power charging.

Outlook to 2030

PwC forecasts Vietnam's full-year 2026 vehicle sales at approximately 585,000 units, up about 8% from 542,000 in 2025, split between 492,000 passenger vehicles and 93,000 commercial vehicles. By 2030, PwC projects the market will reach approximately 735,000 vehicles annually, indicating substantial room for manufacturers to expand product lines and charging infrastructure investment.

Expert commentary

“Vietnam's 31.1% sales growth is not a broad expansion — it's an electrification story. Electrified vehicles outsold internal combustion for the first time, 127,000 units versus 118,000, and VinFast alone delivered 115,916 battery electric vehicles, nearly 40% of the entire market. That level of brand concentration is unusual for a market this size and leaves limited room for other manufacturers to compete on price in the EV segment.

Hybrids grew 83%, faster than pure EVs, because they let fleet operators and price-sensitive buyers skip the charging-infrastructure question. VinFast's own charging network of about 150,000 ports is the reason it can push BEVs this hard while competitors still rely on hybrids as a bridge. Toyota, Hyundai, Mitsubishi and Ford are each selling 21,000-35,000 units, but none is challenging VinFast's EV lead directly.

Vietnam's growth rate is nearly triple the ASEAN-6 average of 11.1%, yet the market is still the fourth-largest in absolute terms at 291,000 vehicles, behind Indonesia's 437,000 and Thailand's and Malaysia's 385,000 each. PwC's forecast of 585,000 vehicles for 2026 and 735,000 by 2030 suggests the growth gap with regional leaders will keep narrowing. Tesla registering a legal entity in September signals it sees the same opportunity, though without a stated operating plan it's a placeholder rather than a commitment. For importers and component suppliers, the 23% rise in import demand — with China the fastest-growing source by value — is the more immediate signal: this market is being built on imported EV supply chains, not domestic manufacturing scale-up.”

Mei Tanaka

Senior Machinery & Automotive Analyst