Vietnam Used Car Market Outlook to 2025: Ken Research

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)” provides a comprehensive analysis of the Used Car market in Vietnam. The report also covers the overview and genesis, market size in terms of gross transaction value and sales volume, business models, trends and developments, issues and challenges, regulations in Vietnam, snapshot on Vietnam used car auto finance, online auto classified. The report provides value chain and SWOT analysis, Buying decision parameters, competitive scenario and company profiles. The report concludes with market projection and analyst recommendations highlighting the major opportunities and cautions.

Vietnam Used Car Market Overview and Size

Vietnam Used Car market in terms of sales volume increased at a double digit CAGR over the review period 2013-2018. The market was observed to be at the early growth stage owing to the faster vehicle replacement rate, reduction in new car launch time, growing middle class population, increasing average ticket size and reduction in import duty on new cars. In Vietnam, people prefer to buy a used car as new ones are expensive and for middle or lower income group people, used cars have become more popular choices.

Vietnamese government has also adopted certain strategies to reduce new car prices in the domestic market such as providing a SCT (Special Consumption Tax) rebate on certain automobiles depending on their engine displacement values. This led to intensive competition in the used car market as new car sales are growing at a faster pace vis a viz used car.

Vietnam Used Car Market Segmentation

By Type of Car: Sedans accounted for highest market share in 2018. Sedans remained the most popular car type as they are perceived as conferring a higher social status. SUV’s accounted the second highest market share followed by Hatchbacks and Cross Type Vehicles (CTV’s).

By Vehicle Age: Used cars under the age bracket of 2-4 years accounted for highest market share in 2018 due to the average ownership period of 3.8 years in Vietnam. The sale of used cars is followed by 4-6 years of vehicle age as these cars have heavy body type, better engine capacity (high horse power) and have high re-sale value.

By Region: The northern regions accounted for the highest share as this region is prone to floods due to which the average ownership period is usually low and consumers prefer to buy a used car as compared to new cars for ease of replacement. It was followed by the Southern region with the highest population and the remaining market share was captured by the Central region.

By Cities: Due to high population and developed infrastructure, Hanoi and Ho Chi Minh City accounted for the highest share in terms of sales volume in 2018. Hai Phong and Da Nang along with other cities contributed the remaining share in total sales volume of used cars in the country.

By Price Range: The average ticket size of used cars in Vietnam is growing over the years. The price range of VND 400 Million – VND 600 Million accounted for highest percentage share due the faster replacement rate along with the depreciation charged over the years on new vehicles.

By Brand: Japanese and Korean brands are the most preferred brands in Vietnam due to their strong brand preference, reliability, longer life span, and higher re-sale value of the used cars. Toyota dominated the market by accounting highest market share followed by Ford, KIA, Mazda and Honda in terms of sales volume. Other brands such as Mitsubishi and Chevrolet captured the remaining market share of used cars sales volume in 2018.

Competitive Landscape

Used car market in Vietnam is highly fragmented with presence of more than 1500 -2000 organized and unorganized dealers across all the cities in Vietnam. Organized dealers include Multi Brand Dealership Outlets (Anycar, Viet Han Used Car, Hien Toyota, Hoa Binh Auto and others) and captive dealers such as Thanh Xuan Ford, Mercedes Benz An Du, Hyundai Dong Do and Toyota an Suong. Online Auto-Classifieds has a highly concentrated space with presence of four to five major companies such as Bonbanh, Oto, Carmudi, Choxe, Chotot and others capturing almost 80.0% share.

Vietnam Used Car Market Future Outlook

In future, it is anticipated that used car sales volume will be fuelled by increasing government initiatives such as EVFTA Agreement and Ban on Motorbikes, growing middle class population, increasing disposable income, increasing car replacement rate and growing customer confidence along with rise in average ticket size of a used car over the years.

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

Key Topics Covered in the Report:-

Vietnam Used Car Market Overview and Genesis (Overview and Genesis, Business Cycle Graph)

Vietnam Used Car Market Ecosystem

Vietnam Used Car Market Value Chain Analysis

Vietnam Used Car Market Business Model

Used Car Market Size Vietnam

Vietnam Used Car Market Segmentation

Snapshot of Vietnam Used Car Finance

Snapshot of Vietnam Online Used Car Market

Buying Decision Parameters in Vietnam Used Car Market

Trends and Developments in Vietnam Used Car Market

Issues and Challenges in Vietnam Used Car Market

Vietnam Used Car Market Regulations

SWOT Analysis Vietnam Used Car

Vietnam Used Car Market Competition Scenario

Vietnam Used Car Market Future Projection, 2018-2025E

Future Outlook of Vietnam Used Car Market Segmentations, 2018-2025E

Analyst Recommendations

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

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Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com
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