How Vietnam Used Car
Market is Positioned?
Vietnam’s
automobile is still an infant industry, with used car market being in early
growth stage.
Due
to underdeveloped infrastructure and high taxes and fees levied on the cars,
people in Vietnam prefer to buy a used motor vehicle as there is a high rate of
depreciation. For middle or lower income group people, used cars have
become more popular choices since the ban on motorbikes were announced in 2017.
Owing
to relatively high production costs due to high fees on imported parts as well
as lack of economies of scale, the vehicle ownership level is much lower
in Vietnam as compared to various developed economies such as Thailand and
Indonesia. The used car market of Vietnam is highly fragmented with presence of
more than ~ dealership
outlets.
The
growth in Vietnam
Used Car Market is primarily driven by the growing middle class
population, faster car replacement rate and increasing number of government
initiatives with respect to free trade agreements and reduction in taxes and
import tariffs.
The
Gross Transaction Value (GTV) from sale of used cars in Vietnam has increased
from USD ~ in 2013 to USD ~ in 2018 at a CAGR of ~% during the period 2013-2018.
Vietnam used car market in terms of sales volume has increased from sale of ~
units in the year 2013 to the sale of ~ units during the year 2018 largely due
to faster replacement period of cars in the market. The
increase in number of inspection checks and direct connectivity with the buyer
and seller has led to significant growth in sale of used cars in the country.
How Vietnam Used Car market Segmented?
By Type of Vehicle
Sedans
accounted for the highest market share in terms of sales volume in the used car
market of Vietnam by capturing ~% in the year 2018. Sedans have high average
car life and are conferred as a higher social status. Sedans are followed by
SUVs in 2018 capturing ~% of total sales in Vietnam used car sales. SUVs have
off late become more popular in Vietnam on account of most of the major
companies launching stylish and affordable models. MPV’s were the third most
preferable vehicle category with ~% market share in terms of sales volume followed
by Hatchbacks, CTV’s and other vehicle types such as Micro vans capturing the
remaining share.
By Vehicle Age
Used
cars under the age bracket of 2-4years dominated the market share contributing
~% share during the year 2018. The average ownership period in Vietnam is ~
years due to which the age bracket accounted for the highest share.
Sale
of used vehicles within the age bracket of 4-6 years accounted for ~% share
during the year 2018 and cars within the age bracket of 0-2 years accounted for
a minimum share of ~% as it usually consists of hatchbacks. Cars sold under the
age bracket of more than 6 years declined from ~% in 2013 to ~% in 2018 due to
faster replacement period of cars which has improved from ~ years in 2013 to ~ years
in 2018.
By Region
The
northern region accounted the highest percentage share in terms of sales volume
of ~% during the year 2018 as these regions are
prone to flood due to which the average replacement period is higher. It was
followed by southern region accounting for ~% of sales volume. This region has
the highest middle class population who prefer
to buy an affordable used car thus boosting the sale of used car in the region.
The remaining share was captured by the Central region where majority of the
car rental companies operating in Vietnam are purchasing and renting out used
cars.
By City
Hanoi
and Ho Chi Minh City accounted for the highest share of ~% and ~% respectively in
terms of sales volume in the year 2018. The high market share was largely due
to high population, developed infrastructure and faster replacement period. Hai
Phong and Da Nang along with other cities contributed the remaining share in
total sales value of used cars in the country owing to the rising
infrastructural development and building up of new residential hubs in the
region.
Cars
under the price range of VND 400 Million – VND 600 Million accounted the
highest sales volume of ~% of the market share among all the price ranges. This
is largely due to the affordability of middle class population that prefers
buying a used vehicle over a new vehicle. The price range of Less than VND 200
Million captured ~% of the market share and mainly comprises of Hatchbacks,
MPVs and Sedans which are generally replaced after 6 years largely due to
incapability of purchasing new car at shorter period. It was followed by cars
under the age bracket of VND 600 Million – VND 800 Million capturing market
share of ~% in the year 2018. The price range of VND 800 Million – VND 1
billion comprises of the luxury cars such as Mercedes Benz and Audi captured
the remaining market share of ~% of total sales volume in the year 2018.
By Brands
Japanese
and Korean brands are the most preferred brands in Vietnam due to strong brand
preference, reliability, longer life span, and higher re-sale value of the used
car. Toyota dominated the market capturing market share of ~% followed by Ford,
KIA, Mazda and Honda capturing market share of ~%, ~%, ~% and ~% respectively in
terms of sales volume in 2018. The major reasons include the stylish models
preferred by the millennial, assurance of car quality, high resale value,
convenience in maintenance and services provided and certifications being given
by the captive dealer showrooms of these brands. Other brands such as
Mitsubishi, Chevrolet and others captured the remaining market share of used
cars sales volume in 2018.
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:-
Related
Reports:-
Contact Us:-
Ken Research
Ankur Gupta,
Head Marketing & Communications
+91-9015378249
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