PwC has released its latest report on the ASEAN-6 automotive market, covering the six largest automotive markets in Southeast Asia: Vietnam, Indonesia, Thailand, Malaysia, the Philippines and Singapore.
The report was prepared by PwC's Automotive ASEAN Centre of Excellence and examines market developments during the first half of 2026. PwC said it compiled and analysed sales data from Japanese automotive data provider MarkLines and national automotive associations rather than collecting sales figures directly.
Southeast Asia’s car market recovered in the first half of 2026 (Photo: VinFast).
Vietnam accounts for 40 per cent of ASEAN-6 growth
After a year of stagnation, ASEAN-6 automotive sales accelerated in the first half of 2026, reaching about 1.76 million vehicles, up 11.1 per cent year on year.
Sales across the six markets had remained broadly flat in the first halves of 2024 and 2025, making the 2026 increase a significant recovery.
Of the roughly 175,000 additional vehicles sold across ASEAN-6, Vietnam contributed about 69,000, or around 40 per cent of the overall increase.
Vietnam's sales reached approximately 291,000 vehicles, up 31.1 per cent, the fastest growth among the six markets. Growth was supported by VinFast, whose sales of electrified vehicles increased strongly, an 83 per cent rise in hybrid sales and a 23 per cent increase in demand for imported vehicles.
The rapid growth has strengthened Vietnam's position in the regional market. Its share of total ASEAN-6 sales has risen significantly in recent years, putting it ahead of the Philippines.
Vietnam posted 31 per cent growth, the highest in the ASEAN-6 group (Source: PwC).
Vietnam's automotive market reaches another peak
Vietnam's automotive market has gone through pronounced cycles over the past several years. Sales rose from about 306,000 vehicles in 2019 to a peak of 463,000 in 2022, before falling about 18 per cent to 379,000 in 2023.
The market then recovered, reaching around 450,000 vehicles in 2024 and 542,000 in 2025, surpassing the previous peak by nearly 17 per cent.
In the first half of 2026, total vehicle sales reached about 291,000, up 31.1 per cent year on year. Passenger vehicles were the main driver, with sales rising 35 per cent from 181,000 to 245,000, while commercial vehicle sales increased 10 per cent from 41,000 to 45,000.
PwC forecasts Vietnam's automotive market will reach about 585,000 vehicles for the full year, an 8 per cent increase from 2025.
The report points to several factors supporting the market, including strong economic growth, lower unemployment, controlled inflation and an expanding middle class.
The expansion of expressways and inter-regional transport links has also made travel easier, while a wider range of vehicles across price segments, combined with financing incentives and promotions, has broadened the customer base.
Electrified vehicles have also moved from a niche segment to an increasingly important part of Vietnam's automotive market.
Vietnam’s annual car sales over the years (Source: PwC).
Electrification accelerates
Electrification has entered a new phase across ASEAN-6, with xEVs accounting for 32 per cent of total vehicle sales in the first half of 2026. Adoption, however, varies considerably between markets.
Vietnam recorded about 127,000 electrified passenger vehicles sold in the first half of 2026, according to PwC.
The source article describes electrified vehicles as accounting for 52 per cent of Vietnam's passenger-car market during the period, surpassing internal-combustion vehicles. This reflects the rapid expansion of both battery-electric and hybrid models.
Importantly, demand for internal-combustion vehicles has not disappeared. Sales of such vehicles continued to grow, although most of the market's incremental growth came from electrified models.
Electrified vehicle sales are rising rapidly in Vietnam (Source: PwC).
PwC identifies several factors behind the expansion of electrified vehicles in Vietnam.
The first is government policy and the country's longer-term targets for electric mobility and greener road transport.
The second is increasing competition among manufacturers. VinFast has expanded rapidly, while Chinese and international brands have introduced more electrified models, giving consumers a wider range of choices.
Higher fuel costs have also strengthened the operating-cost advantage of electric vehicles, particularly for transport businesses.
Charging infrastructure is expanding rapidly. V-Green currently operates about 150,000 charging ports for electric vehicles across 34 provinces and cities, according to Vingroup.
A charging station operated by Tasco (Photo: Tasco).
Consumer attitudes are also changing, with a growing number of electric models appearing among Vietnam's best-selling vehicles.