Vietnam Used Car Market will be driven by Improvement in Car Replacement Rate and Increasing presence of Online Platforms: Ken Research

“Introduction of government policies (Reduction of SCT, ATIGA and VKFTA) coupled with rising number of inspection checks performed before selling a used car have driven the Vietnam Used Car Market”.

The report titled “Vietnam Used Car Market Outlook to 2025 - By Type (Sedans, SUV’s, MPVs, Hatchbacks, CTVs and Others), By Vehicle Age (0-2 Years, 2-4 Years, 4-6 Years and more than 6 Years), By Cities (Hanoi, HCMC, Hai Phong, Da Nang and Others) and By Brand (Toyota, Mazda, Kia, Honda, Ford, Chevrolet, Mitsubishi and Others)” by Ken Research suggested that the Vietnam Used Car Market has been increasing due to increasing middle class population coupled with faster car replacement period and introduction of government policies such as EVFTA and Ban on Motorbikes. The market is expected to register a positive CAGR of 11.2% in terms of sales volume during the forecast period 2018-2025E.

Reduction of Special Consumption Tax (SCT): The Vietnamese government in the year 2018 reduced SCT on vehicles with an engine size of 2.0 litres or less by 5%. Moreover, according to the ASEAN Trade in Goods Agreement, the government has also reduced the import tariffs from 50% to 35% in 2015 which further reduced to 20% in 2016 and 10% in 2017. In the year 2018, it was bought down to 0% which boosted the sale of used cars in the country.

Increasing Replacement Rate: The replacement rate of used vehicle in Vietnam is growing over the years largely due to the high resale value a seller gets on replacing a vehicle between 2-4 years of vehicle age. The dealership outlets keep replacing the cars with the fast moving models so as to ensure higher margins on the sale of such cars.

Strong Presence of Online Platforms: The use of social media platforms such as Facebook Marketplace along with online auto classifieds portals in Vietnam such as Oto and Carmudi have provided high user convenience to the buyers who are looking forward to purchase a used car as it provides the detailed description of all the listed used cars. The online medium drastically reduced the customer acquisition cost and increased the transparency which marked a level of trust and confidence thus increasing the sale of used cars in the country.

Key Segments Covered:-

By Type of Vehicle

Sedans

 SUV’s

MPVs

Hatchbacks

Cross Type Vehicles (CTVs)

Others

By Vehicle Age

0-2 Years

2-4 Years

4-6 Years

More than 6 Years

By Region

North

South

Central

By Cities

Hanoi

HCMC

Hai Phong

Da Nang

Others

By Price

Less Than VND 200 Million

VND 200 Million – VND 400 Million

VND 400 Million – VND 600 Million

VND 600 Million – VND 800 Million

More Than VND 800 Million

By Brand

Toyota

Mazda

Ford

Kia

Honda

Chevrolet

Mitsubishi

Others

Key Target Audience:-

OEM’S Companies

Multi Brand Dealers

Captive Dealers

Venture Capitalist Firms

Government/ Regulatory Authorities

Online Auto-Classifieds

Time Period Captured in the Report:-

Historical Period: 2013-2018

Forecast Period: 2019E-2025E

Companies Covered:-

Major Online Players in Vietnam:-

Bonbanh

Oto

Carmudi

Choxe

Chotot

Major Captive Dealers:-

Than Xuan Ford

Mercedes Benz An Du

Hyundai Dong Do

Toyota An Suong

Multi-Brand Dealers

Anycar

Viet Han Used Car

Hien Toyota

Hoa Binh Auto

For more information, refer to below link:-

Vietnam Used Car Market

Related Reports:-

China Used Vehicle Market Outlook to 2022 - by Type of Vehicle (Sedans, SUVs, Micro Vans, MPVs, Trucks, Buses, Cross Type Vehicles, Trailers, Motor Cycles and Low Speed Trucks), by Vehicle Age, by Distribution Channels, by Region, by Price of Vehicle

Indonesia Used Car Market Outlook to 2023 - Rising Popularity of Online Platforms and Reduction in Average Ownership Period to Drive Used Car Sales

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com
+91-9015378249