Abstract

As of early 2025, Vietnam’s hybrid car market is experiencing strong growth, driven by rising consumer interest, expanded vehicle options, and pending policy changes. With nearly 10,000 hybrid cars sold in 2024 and over 2,500 units sold in Q1 2025 alone, this segment is carving out a notable presence in the overall automotive industry.

Promising Sales Growth in Hybrid sector

Starting in 2024, hybrid vehicle sales in Vietnam were officially tracked as a separate category. By the end of that year, the combined sales of various hybrid technologies—including mild hybrid (MHEV), self-charging hybrid (HEV), and plug-in hybrid electric vehicles (PHEV)—reached 9,866 units ([1]).

In the first quarter of 2025, sales climbed further to 2,562 units, an impressive 80% increase compared to the same period in 2024, when only 1,426 hybrid cars were sold. In terms of market share, hybrids accounted for approximately 3.54% of all cars sold in Q1 2025, up from around 2.45% in Q1 2024 ([2]).

The hybrid vehicle market in Vietnam continues to be dominated by Japanese automakers. Among them, Toyota leads the pack, with the Toyota Innova Cross HEV emerging as the best-selling hybrid model in the country during Q1 2025.

Top-Selling Hybrid Cars in Q1 2025
Unit: car unit

Source: Vietnam Automobile Manufacturers Association (VAMA)

New Hybrid Car Launches in April 2025

The growing demand is being met with a broader supply. As of early 2025, the Vietnamese market features over 20 hybrid models spanning various categories—SUVs, crossovers, sedans, and MPVs—covering vehicle segments B, C, and D. Consumers now have a wide range of price options, from budget models like the Toyota Corolla Cross and Suzuki Ertiga Hybrid to premium offerings such as the Lexus RX 500h and Volvo XC90 Recharge. ([3])

April 2025 marked a significant milestone in Vietnam’s automotive market, with several new hybrid vehicles introduced, reflecting the country’s ongoing shift towards sustainable transportation. Notable launches include:

– Honda HR-V e:HEV RS: Honda Vietnam officially unveiled the updated HR-V in early April, featuring the e:HEV RS hybrid variant for the first time. This model is imported from Thailand and offers a more affordable price point compared to its predecessor, with the e:HEV RS priced at VND 869 million ([4]).

– BYD Sealion 6: Chinese automaker BYD has introduced the Sealion 6 hybrid SUV to the Vietnamese market. The starting price is around VND 799 million, with promotional offers for early buyers ([5]).

– Kia Sorento Hybrid 2025: Kia’s 2025 Sorento Hybrid is now available in Vietnam, with prices ranging from VND 1.299 billion to VND 1.499 billion, depending on the variant ([6]).

– GWM Tank 300 Hybrid: Great Wall Motors is set to launch the Tank 300 hybrid SUV in Vietnam. While the official price has not been disclosed, estimates suggest it will be around VND 1.5 billion ([7]).

These new hybrid offerings expand the choices available to Vietnamese consumers, catering to a range of preferences and budgets. The introduction of these models underscores the automotive industry’s commitment to providing environmentally friendly alternatives and aligns with Vietnam’s broader goals for sustainable development.

Tax Incentives to Support the Green Transition

One of the main barriers preventing hybrid vehicles from gaining broader market share is their relatively higher price compared to traditional gasoline or diesel counterparts. This cost difference is due to the added complexity of hybrid powertrains, including electric motors and batteries.

Under Vietnam’s current Special Consumption Tax (SCT) Law No. 27/2008/QH12, vehicles that run on a combination of gasoline and either electricity or bioenergy—where gasoline accounts for no more than 70% of total energy used—are eligible for a 30% tax reduction compared to similar conventional models. However, this tax break applies only to PHEVs (plug-in hybrids), which can be charged from an external power source.

In contrast, regular HEVs — where electricity is generated internally from gasoline combustion and cannot be plugged in, do not qualify for this incentive. As a result, buyers of HEVs in Vietnam are subject to SCT rates ranging from 35% to 150%, depending on engine size, along with registration fees of 10%–12%, just like buyers of traditional internal combustion engine (ICE) vehicles.

The good news is that a new draft amendment to SCT Law No. 27/2008/QH12 – is currently under consideration. This proposal recommends offering the same tax incentives to all hybrid vehicles, regardless of whether they are HEVs or PHEVs. Specifically, it suggests applying a 30% reduction in the special consumption tax rate compared to gasoline-powered vehicles ([8]). If approved, this change would significantly boost the appeal of HEVs in Vietnam by lowering their retail prices. Reduced prices would also translate to lower registration fees—potentially saving buyers ten to hundreds of millions of VND, depending on the model.

Hybrid vehicles produced between 2026 and 2030 are projected to reduce over 2.6 million tons of CO₂ emissions, delivering an estimated economic benefit of 333 billion VND through carbon credit offsets ([9]). While pure electric vehicles (EVs) remain the goal for decarbonizing transportation, widespread adoption faces barriers such as underdeveloped infrastructure, high costs, and limited model availability. In the meantime, hybrid vehicles, particularly hybrid electric vehicles (HEVs) offer a practical and scalable solution. They significantly cut emissions compared to internal combustion engine (ICE) vehicles, eliminate the need for external charging infrastructure, and can be rapidly produced using current manufacturing systems.

Conclusion

Vietnam’s hybrid car market is gaining strong momentum, with sales surging in early 2025 and continued growth expected through the end of the year. A wider range of models, growing consumer interest, and potential tax reforms are setting the stage for broader adoption. If proposed tax incentives are approved, HEVs could become far more competitive in the future. As EV adoption remains limited by infrastructure and cost barriers, hybrids offer a practical, lower-emission alternative that will likely play a key role in Vietnam’s transition to sustainable transportation over the next decade.

[1] Báo cáo bán hàng

[2] https://autopro.com.vn/mot-phan-khuc-o-to-am-tham-tang-toc-trong-3-thang-dau-nam-2025-lieu-co-dang-tao-ra-xu-huong-moi-cho-thi-truong-viet-177250506080207998.chn

[3] https://diendandoanhnghiep.vn/cho-doi-xe-hybrid-uu-dai-thue-10153945.html

[4] https://dantri.com.vn/o-to-xe-may/xe-moi-ra-mat-trong-thang-4-chuyen-dich-xanh-tren-thi-truong-o-to-viet-20250428121643086.htm?utm_source=chatgpt.com

[5] https://dantri.com.vn/o-to-xe-may/xe-moi-ra-mat-trong-thang-4-chuyen-dich-xanh-tren-thi-truong-o-to-viet-20250428121643086.htm?utm_source=chatgpt.com

[6] https://oto360.net/xe-kia/sorento-hybrid.html

[7] https://gotech.vn/gwm-tank-300/

[8] https://diendandoanhnghiep.vn/cho-doi-xe-hybrid-uu-dai-thue-10153945.html

[9]

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