In previous years, new car sales in Thailand typically ranged from one and a half to two times that of Vietnam. However, a weakening in Thailand's auto industry has led to continuous sales declines over the last two years. Conversely, with significant advancements from VinFast and other brands like Toyota, Mitsubishi, and Ford, Vietnam's auto sales are gradually catching up to Thailand's.

In 2024, new car sales in Thailand surpassed Vietnam's by approximately 68,600 units. By 2025, this difference is projected to shrink to about 17,000 units. This marks the smallest sales gap between the two neighboring markets in approximately 10 years.

According to the Federation of Thai Industries (FTI), Thailand's 2025 sales are expected to increase by 10%, the highest growth rate in three years. Prior to 2022, Thailand's auto sales generally fluctuated between 700,000 and 800,000 vehicles annually.

Thailand's auto sales in 2025 improved due to increased demand for electrified vehicles. Last year, 276,697 electrified vehicles were sold in the country, an increase of about 48% compared to 2024, accounting for approximately 45% of the total new vehicle market volume.

For Vietnam, 2025 represents a record sales year, surpassing the 600,000-vehicle mark. The primary growth driver is VinFast, which saw a 101% sales increase compared to 2024, the highest in the market. Ford and Toyota also contributed to this growth, with sales increasing by 20% and 8% respectively.

Indonesia and Malaysia remain the two largest Southeast Asian markets for new vehicle consumption. While Indonesia's market sales decreased by 3.7% compared to 2024, Malaysia experienced a slight 0.5% increase.

In terms of automotive production, Thailand continues to lead the region, manufacturing over 1.4 million units, a slight 1% decrease compared to 2024. Within this figure, the production of internal combustion engine (ICE) vehicles decreased by 29%.

Many automakers investing in factories in Indonesia have rapidly increased the country's vehicle production capacity in recent years. Indonesia now ranks second after Thailand in regional vehicle output, producing over 1.14 million units, a 30% increase compared to 2024.

According to Vietnam Customs, Indonesia exported 78,156 vehicles of various types to Vietnam in 2025, while Thailand exported 66,109 vehicles. These two countries lead vehicle exports to the Vietnamese market, collectively accounting for about 70% of the total volume. Many of Vietnam's top-selling models in 2025, such as the Toyota Yaris Cross, Ford Ranger, Mitsubishi Xpander, and Xforce, were imported from these two nations.

Suuzki Fronx, an Indonesian-imported model driven in Vietnam. *Photo: Pham Trung*

Vietnam also significantly increased domestic vehicle production as manufacturers invested more in local production and assembly lines. VinFast made a major contribution, as all its vehicles sold are from its two factories in Hai Phong and Ha Tinh. According to the General Statistics Office (Ministry of Finance), in 2025, Vietnam's auto industry produced approximately 484,500 vehicles, a 25% increase compared to 2024.

Thanh Nhan