Vietnam Luxury Car Market Size, Share, Growth and Forecast, 2025-2035

Rising incomes and lower duties widen premium buying

The Vietnam luxury car market was valued at USD 1.03 billion in 2025 and is projected to increase from USD 1.12 billion in 2026 to USD 2.37 billion by 2035, registering a CAGR of 8.61% during 2026–2035. Demand comes from business owners, executives and affluent families in the largest cities who buy premium SUVs and sedans as incomes rise and import duties fall. Ho Chi Minh City and Southeast held the largest regional share, 40.0% in 2025, because the enlarged city produces about one-quarter of national output after its July 2025 merger. Central Coast and Da Nang is the fastest-growing region at 9.36% a year, as dealer networks reach new provincial buyers. In turn, the government cut import duties on several passenger vehicle lines in March 2025, which lowers landed costs for imported premium models.

Which premium vehicles does the Vietnam estimate count?

The estimate measures retail value of new premium passenger vehicles sold in Vietnam, including SUVs, sedans, performance coupes and MPVs from global premium brands. It counts sales through authorized dealerships, brand-owned experience centers, corporate and fleet channels, parallel importers and online lead platforms.

The estimate excludes used vehicles, mass-market models, commercial vehicles and after-sales parts and service. The value chain runs from global manufacturers and local assemblers through importers and dealer groups to private buyers, companies and hospitality operators.

SUVs lead while electric models grow fastest

Why do premium SUVs lead vehicle value?

Based on vehicle type, the market is categorized into luxury SUVs, luxury sedans, performance coupes and luxury MPVs. Luxury SUVs led with a 52.0% share of 2025 value, because buyers want high seating, cabin space and comfort on mixed road surfaces. Luxury MPVs grow fastest at 9.49% a year, as executives and hotels choose chauffeur-driven people carriers.

How is the powertrain mix moving toward electrification?

Based on powertrain, the market is categorized into gasoline ICE, diesel ICE, hybrid, plug-in hybrid and battery electric models. Gasoline ICE led with a 74.0% share of 2025 value, because most best-selling premium sedans and SUVs still use gasoline engines. Battery Electric models grow fastest at 14.04% a year, as tax breaks and new charging points lower ownership costs.

Which buyers account for most premium purchases?

Based on customer type, the market is categorized into affluent private buyers, entrepreneurs and business owners, corporate executive fleets and chauffeur and hospitality operators. Affluent Private Buyers led with a 50.0% share of 2025 value, because rising household wealth drives personal purchases. Chauffeur and Hospitality Operators grow fastest at 9.17% a year, as hotels and resorts add VIP transport.

How do accessible and core premium tiers compare?

Based on price tier, the market is categorized into accessible luxury, core luxury, high luxury and ultra-luxury models. Core Luxury led with a 41.0% share of 2025 value, because mid-size sedans and SUVs from German and Japanese brands sell in the largest numbers. Accessible Luxury grows fastest at 9.07% a year, as first-time premium buyers enter with compact models.

Wealth, tariff cuts and electrification lift demand

How do affluent households and fast growth lift demand?

Affluent household and economic expansion drives demand, because more business owners and professionals now reach the income needed for premium vehicles. Vietnam's economy grew 8.02% in 2025, and GDP per capita reached USD 5,066, according to the World Bank. The population stood at 101.6 million in 2025, which gives the country one of the largest consumer bases in Southeast Asia. Hanoi reported GRDP per capita of VND 179.2 million, or USD 7,467, in 2025, up 10% from 2024. As a result, Ho Chi Minh City and Southeast leads regional value, because the wealthiest buyers cluster in the two largest urban regions.

Why does import-tariff normalization lower prices?

Import-tariff normalization lifts demand, because lower duties narrow the price gap between imported premium models and mass-market vehicles. The government issued Decree 73 on March 31, 2025, cutting most-favored-nation rates on some passenger vehicle lines from 64% to 50% and on certain sedans and four-wheel-drive models from 45% to 32%, according to Vietnam Briefing. Imported completely built-up vehicles reached 23,241 units in December 2025, close to the 23,826 locally assembled units, according to Viet Nam News. Members of the national automobile association sold 375,736 vehicles in 2025, up 10.5% on the year. In turn, high luxury and ultra-luxury imports become easier to price.

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How do premium electrification and charging support sales?

Premium electrification and charging development drive demand, because tax breaks and new chargers make electric premium models practical for city buyers. The government extended the registration-fee exemption for battery electric vehicles through the end of 2030 under Decree 202, issued in June 2026, according to Tuoi Tre News. Mercedes-Benz brought the electric G 580 EQ to Vietnam in early April 2025, and Volvo launched the EC40 as its first all-electric model there in 2024. V-Green also reported more than 150,000 charging ports for electric cars and motorbikes nationwide in September 2025. As a result, battery electric models are the fastest-growing powertrain group through 2035.

Why does a broader brand mix widen the buyer pool?

A broader brand mix widens the buyer pool, because Japanese hybrids and locally assembled German models now compete with imported flagships at several price points. Lexus sold 2,252 vehicles in 2025, up from 1,552 in 2024, according to VietnamFinance. BMW sales grew to about 1,500 to 2,000 units a year during 2023 to 2025 after THACO took over distribution in 2018. Mercedes-Benz, by contrast, fell from about 3,000 units in 2024 to about 2,100 in 2025. In turn, accessible luxury grows fastest at 9.07% a year, as more brands offer compact premium models to first-time buyers.

Hybrid SUVs, electric flagships and chargers reshape sales

How is the shift toward hybrid SUVs changing brand rankings?

The shift toward hybrid SUVs is changing brand rankings, because buyers want lower fuel bills without depending on public chargers. Lexus, which sells many hybrid SUVs, outsold Mercedes-Benz in 2025 with 2,252 units against about 2,100. Mercedes-Benz sales declined for three consecutive years from about 3,200 units in 2023. Audi sold about 270 units in 2025, far below its record of 600 in 2013, which shows how quickly buyer preferences have moved away from traditional German sedans toward efficient hybrid models. As a result, luxury SUVs hold 52.0% of 2025 value, in line with wider premium SUV demand across Asia.

Why is the rise of electric flagships notable?

The rise of electric flagships is notable, because premium brands now use high-profile electric models to signal technology leadership. BMW introduced the i4 and iX3 in Binh Duong on July 31, 2023 through its distributor THACO. Volvo followed in 2024 with the EC40, aimed at high-income buyers comparing the Porsche Macan electric and BMW iX3. Mercedes-Benz added the G 580 EQ in April 2025 for loyal G-Class customers, which shows that even the most traditional off-road nameplate now has an electric version for Vietnamese buyers. In turn, battery electric models grow at 14.04% a year, as battery electric vehicles move from niche to mainstream premium choices.

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Can provincial cities open new premium demand?

Provincial cities can open new premium demand, because income growth is spreading beyond Hanoi and Ho Chi Minh City. Urban residents made up 38.8% of the population in 2025, according to World Bank data, which leaves large room for further city growth. Hanoi grew 8.16% in 2025, while Ho Chi Minh City grew about 8.03% after merging with Binh Duong and Ba Ria-Vung Tau on July 1, 2025. As a result, Central Coast and Da Nang is the fastest-growing region, as dealers open showrooms in Da Nang and nearby provinces to serve resort operators, factory owners and professionals who previously traveled to Hanoi or Ho Chi Minh City to buy.

Is there room to grow through charging partnerships?

Charging partnerships offer room to grow, because premium electric buyers need reliable chargers near homes, offices and shops. V-Green signed an agreement with Mobile World on Sept. 15, 2025 to deploy 350 charging stations at its stores in 2025 and 1,000 more in 2026. The plan also adds 1,360 battery swap cabinets in 2025 for electric motorbikes. V-Green already reports more than 150,000 charging ports for cars and motorbikes nationwide, which gives brands a ready network to recommend to new owners. In turn, brands that offer home wallboxes and access to public EV charging stations can convert more gasoline owners.

Stock overhang, layered taxes and charging gaps weigh

How does unsold stock pressure pricing?

Unsold stock pressures pricing, because the premium segment stayed sluggish through mid-2025 and some dealers still held vehicles from 2022. As a result, Mercedes-Benz offered discounts of up to VND 250 million on AMG, Maybach and S-Class models, while Audi cut up to VND 200 million on the Q5. Discounts lift volume but erode dealer margins and residual values. Brands respond with tighter import planning, certified pre-owned programs and service packages.

Why do layered vehicle taxes limit buyers?

Layered vehicle taxes limit buyers, because import duty, special consumption tax and registration fees stack on top of each other for premium models. The National Assembly passed a new Law on Special Consumption Tax on June 14, 2025, effective Jan. 1, 2026, which keeps passenger vehicles taxable. As a result, large-engine models remain far more expensive than abroad. Brands respond with hybrid and electric options that qualify for lower taxes.

How do charging gaps slow electric adoption?

Charging gaps slow electric adoption, because many premium buyers live in apartments or provincial towns without dedicated parking or fast chargers. In turn, buyers worry about range on long highway trips between cities, especially during holidays. Brands respond with home wallbox packages, dealer charging hubs and partnerships with public networks. As a result, electric premium sales remain concentrated in Hanoi and Ho Chi Minh City.

Why do parallel imports complicate service and resale?

Parallel imports complicate service and resale, because vehicles brought in outside official channels may lack factory warranties, local software and approved parts. As a result, owners can face long repair times and lower resale prices, which damages brand reputation. Authorized dealers respond with service plans, extended warranties and genuine parts guarantees. In turn, buyers who value reliable after-sales support move toward official dealerships.

Ho Chi Minh City leads as central provinces grow fastest

Why does Ho Chi Minh City and Southeast hold the top share?

Ho Chi Minh City and Southeast held a 40.0% share of 2025 value and grows at 8.46% a year, because the enlarged city produced about 23.5% of national GDP in 2025. Its output neared VND 3 quadrillion after the July 1, 2025 merger with Binh Duong and Ba Ria-Vung Tau. As a result, the region hosts the densest network of premium showrooms, service centers and corporate buyers in the country.

How does Hanoi and Red River Delta support premium sales?

Hanoi and Red River Delta held a 36.0% share of 2025 value and grows at 8.46% a year, because Hanoi recorded GRDP of USD 69 billion in 2025, the second largest in the country. Hanoi GRDP per capita reached USD 7,467 that year, up 10% from 2024. In turn, government officials, business owners and foreign company executives buy many premium sedans and SUVs there.

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Why is Central Coast and Da Nang growing fastest?

Central Coast and Da Nang held a 9.0% share of 2025 value and grows fastest at 9.36% a year, because tourism, resorts and new industrial zones are raising incomes. BMW models are also assembled at THACO Chu Lai in Quang Nam, close to Da Nang. As a result, hospitality operators, resort groups and local entrepreneurs add premium SUVs and MPVs for guests and family use, which lifts demand in Da Nang.

How does the Mekong Delta add demand?

The Mekong Delta held a 7.0% share of 2025 value and grows at 8.96% a year, because Can Tho and nearby provinces have a growing class of agribusiness owners. In turn, dealers in Can Tho serve buyers across the delta with accessible premium SUVs.

What role do other provincial markets play?

Other provincial markets accounted for 8.0% of 2025 value and grow at 8.86% a year, because buyers in the northern uplands and Central Highlands often travel to large cities to purchase. As a result, growth depends on new satellite showrooms and digital lead platforms.

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Tariff, tax and electrification milestones

Hybrid, electric and connected systems define premium models

• Self-charging hybrid systems pair gasoline engines with electric motors, which cuts fuel use in heavy city traffic without needing a charger.
• Battery electric platforms deliver quiet, fast acceleration and zero tailpipe emissions, which suits short daily trips in Hanoi and Ho Chi Minh City.
• Connected cabin systems link navigation, remote climate control and service booking to the owner's phone, which raises convenience.
• Driver assistance suites add adaptive cruise control, lane support and parking aids, which reduce fatigue on long highway trips.

German and Japanese brands compete on range and service

Competition is led by German and Japanese premium brands, with British and Italian marques serving the high-luxury and ultra-luxury tiers. Mercedes-Benz competes through a broad dealer network led by Haxaco and models such as the C-Class, E-Class and the electric G 580 EQ. Lexus competes with hybrid SUVs and sedans, and its sales rose to 2,252 units in 2025. BMW competes through THACO, which handles distribution and local assembly at Chu Lai, and offers the electric i4 and iX3. Volvo Cars competes on safety and the electric EC40, while Audi uses price cuts on the Q5 and A6. Porsche runs Porsche Studio Hanoi, and Rolls-Royce Motor Cars sells the Ghost Series II at about VND 35 billion. Rivals compete on price, hybrid and electric choice, service quality and resale value. Because buyers expect reliable after-sales care, brands with wide service networks usually win.

Which brands lead premium vehicle sales in Vietnam?

Credence Research view on premium vehicle demand

Credence Research's view is that the Vietnam luxury car market will keep growing faster than overall vehicle sales, because wealth is rising and import duties have started to fall. Luxury SUVs remain the largest value pool, while battery electric models, MPVs and accessible premium tiers add the fastest growth. Lexus hybrids and THACO-assembled BMW models show how lower ownership costs win buyers. Brands with hybrid and electric choice, wide service networks and disciplined stock planning should gain the most, while discounting and taxes keep pressure on importers.

How the national premium vehicle estimate was built

The report uses 2025 as the base year on a calendar basis, and market values come from the Credence Research model. That model combines national accounts, provincial output data, vehicle association sales, brand sales reported in the press and tax and tariff decrees. Segment splits, regional shares and regional growth rates are Credence Research estimates. Sources used are official statistics, government decrees and agency releases, trade media reports and company releases, and no interviews or surveys were used.

Electrified SUVs and wider dealer reach carry growth to 2035

The Vietnam luxury car market is expected to reach USD 2.37 billion by 2035, an 8.61% CAGR during 2026–2035, as household wealth grows and lower duties make premium models easier to afford. Growth should be strongest in battery electric models, luxury MPVs and the Central Coast, because these areas gain most from tax breaks, tourism and new dealer networks. Wider charging coverage will support electric sales, while unsold stock, layered taxes and parallel imports could slow some brands.

Note: The depth of individual sections depends on data availability for this market. Volume, capacity, trade and other unit-based metrics are included where applicable.