"Move Over Toyota" Hyundai Motor Aims to Reclaim No.1 Spot in Vietnam Market

Hyundai Motor Leads Vietnam Market Sales from January to May
Local Production of Ioniq 5 Starts in July
Expansion of Vietnam Plant 2 Secures Annual Production Capacity of 100,000 Units
Chairman Chung Eui-sun Accompanies President on Vietnam Visit

Hyundai Motor Company is making a move to reclaim the number one position in the rapidly emerging Vietnamese automobile market. By locally producing new electric vehicles such as the Ioniq 5, it aims to increase the operating rate of its second plant, which was expanded last year. Through this, Hyundai plans to achieve meaningful results in the Southeast Asian automobile market, currently dominated by Japanese brands like Toyota.

According to data from the Vietnam Automobile Manufacturers Association (VAMA) on the 21st, Hyundai sold 22,903 vehicles in the Vietnamese automobile market from January to May this year, reclaiming the top spot in the industry. The best-selling model was Hyundai's compact car, the Accent.

In 2017, Hyundai established a production joint venture (HTMV) with the Vietnamese Tan Chong Group to enter the Vietnamese market. Just two years after its launch, in 2019, Hyundai sold 79,568 units, surpassing Toyota to take first place. In 2020 and 2021, Hyundai continued to lead sales for three consecutive years, selling 81,368 and 70,518 units respectively. In 2022, Hyundai recorded second place with 81,582 units sold, temporarily yielding the top spot to Toyota.

In 2021, Hyundai established a sales joint venture (HTV), and last year, through the completion of HTMV's second plant, it expanded production capacity to approximately 107,000 units annually. Starting from July this year, Hyundai began local production of the electric vehicle Ioniq 5, targeting the Vietnamese electric vehicle market.

The completion ceremony of Hyundai Motor Vietnam's second joint venture plant in November last year
[Photo by Hyundai Motor Group]

In particular, with the second plant expanded last year beginning full operation in September, the scale of local production is expected to increase significantly. HTMV plans to add production of four models including the Ioniq 5, Venue, and Palisade in the second half of this year. This will bring the total number of models produced at the Vietnamese plant to 12. Hyundai expects to gain a competitive edge in sales through price competitiveness achieved by local production.

The Vietnamese market is one of the emerging markets with the highest growth potential. Last year, as the impact of the COVID-19 pandemic lessened, the market grew to an annual scale of 400,000 units. Supported by continuous economic growth and rising income levels of the Vietnamese people, it is expected to grow to an annual scale of 500,000 units by 2025.

Hyundai Motor Company unveiled the Ioniq 5 in Vietnam in April last year.
[Photo by Hyundai Motor Group]

This year, despite some slowdown due to economic recession and interest rate hikes, the Vietnamese government is introducing various support measures, including a 50% reduction in registration tax. Expansion of the electric vehicle market is also anticipated. Vietnam, led by the Automobile Manufacturers Association, aims for a 100% transition to electric vehicles by 2050. As of 2020, electric vehicles accounted for only 0.2% of total vehicle registrations in Vietnam. To promote electric vehicle adoption, the Vietnamese government has been supporting measures such as exemption from electric vehicle registration fees and reduction of special consumption tax since March last year.

Meanwhile, Hyundai Motor Group Chairman Chung Eui-sun has been accompanying President Yoon Suk-yeol as part of the economic delegation on his France and Vietnam tour, which started on the 19th. Following support efforts for the Busan Expo bid, he will move to Vietnam on the afternoon of the 21st (local time). He plans to assess the local market situation and meet with high-ranking Vietnamese officials to discuss bilateral cooperation in the automobile industry.

This content was produced with the assistance of AI translation services.