The assessment was shared by executives of Savico during the company's annual shareholders' meeting on June 5.
According to Savico, the Vietnamese auto market achieved a historic milestone in 2025 with sales exceeding 600,000 vehicles. However, from 2026 onward, the industry is expected to face significant challenges, including large inventory carryovers, aggressive price competition and the rapid expansion of Chinese automotive brands.
Industry leaders noted that the most significant change is no longer the market's size but the pace of transformation. Electric vehicles, hybrid models and new automotive brands are entering the market at an increasing rate, while profit margins from vehicle sales continue to narrow.
Savico Chairman Ngo Duc Vu said the company is preparing for this transition by moving beyond the traditional dealership model. Rather than focusing primarily on expanding showrooms and sales outlets, the company plans to build a large scale service network capable of supporting multiple brands simultaneously.
Vu said this approach mirrors the strategy adopted by major automotive distribution groups in China as competition intensifies among electric vehicles, gasoline powered vehicles and emerging brands.
"During my visits to China, I observed that major distributors similar to Savico are making the same transition. We will invest in service infrastructure first and create opportunities to cooperate with manufacturers entering the Vietnamese market," he said.
According to Savico's leadership, many new automotive brands are entering Vietnam with relatively small sales volumes. Building separate showrooms and service centers for each brand may not be economically efficient, while demand for maintenance, repairs and vehicle care remains throughout a vehicle's lifecycle.
Savico is one of Vietnam's largest automotive distributors and service providers, operating more than 100 showrooms nationwide. The company is currently a member of Tasco Auto.
For 2026, Savico targets consolidated revenue of more than VND 22.094 trillion (approximately USD 850 million) and after tax profit of nearly VND 159 billion (approximately USD 6.1 million), representing declines of 21 per cent and 68 per cent, respectively, compared with the previous year.
The year 2025 marked a historic milestone for Vietnam's automotive industry as total vehicle sales exceeded 600,000 units for the first time, rising 22 per cent from 2024 and surpassing the previous record of 508,547 vehicles set in 2022.
On average, Vietnamese consumers purchased more than 1,650 new vehicles every day throughout the year.
Growth was driven by several factors. A strong macroeconomic environment, including GDP growth of 8.02 per cent, the second highest level in a decade, helped boost consumer demand. Promotional campaigns by automakers and government support policies also stimulated vehicle purchases.
Commercial vehicles recorded particularly strong growth, rising 32 per cent to 104,627 units, while passenger vehicles continued to dominate the market, accounting for nearly 71 per cent of total sales.
Notably, sales of green vehicles, including electric and hybrid models, reached 189,270 units, representing approximately 31 per cent of all new vehicles sold.
Among them, VinFast delivered 175,099 electric vehicles, up 101 per cent year on year, making it the single largest growth driver in Vietnam's automotive market.
