Wednesday, April 20, 2022

Vietnam Automotive Aftermarket Service Market, Industry, Growth Strategy Market Report, Revenue Forecasting, Analysis, Sales, Shares, Size, Major Players, Growth, Forecast, Competition, Future Outlook: Ken Research

Overview Of Vietnam Automotive Aftermarket Service Industry

Vietnam‘s automotive aftermarket service industry generated a revenue of USD ~XX million in FY’20, expanding at a CAGR of XX% during FY’15 and FY’20. The market is fragmented with various players operating in the Automotive Aftermarket Service Ecosystem, consisting of OEM/Authorized, Large Multi Brand and Small/Unorganized workshops. Historically, motor bikes remain the top choice among the consumers due to high concentration of population belonging to rural regions having low purchasing power. However, due to rapid urbanization and fast growing middle class, the demand for passenger cars has been growing significantly in recent times, which in turn is contributing to the growth of automotive aftermarket service industry. The growth of vehicle parc serve as one of the major growth drivers for the aftermarket industry in Vietnam in recent years. It has been estimated that vehicle parc expanded with a CAGR of XX% in between FY’15 and FY’20. Most number of vehicles serviced in FY’20 were in the city of Hanoi (XX units), followed by Ho Chi Minh (XX units), Haiphong (XX units) and Can Tho (XX units).

Competitors in Vietnam aftermarket service industry compete based on services offered, service fee, number of cars serviced, quality of service, sourcing of spare parts, and booking mode. Major OEM/authorized workshops operating in Vietnam automotive aftermarket service industry includes Hyundai Vietnam, Toyota Motors Vietnam, Honda Vietnam, Ford Vietnam, THACO, and Vinfast among others. Multi brand players include Vietnam Car Care, Thanh Phong Auto, Vuong Phat Auto, Vu Khoi Garage, and Garage Doanh Workshop among others.

Vietnam Automotive Aftermarket Service Industry Segmentation, FY’20

By Type of Workshop

Small/Unorganized workshops was estimated to dominate aftermarket service industry in Vietnam. Small/Unorganized workshops constituted XX% of the overall workshop in FY’20 followed by large multi brand workshops and OEM. Consumers prefer small/unorganized workshops due to lower priced services they offer compared to OEMs post warranty period.

By Type of Vehicles Serviced

Vietnam’s automotive aftermarket industry was observed to be dominated by Sedan in FY’20 on the basis of revenue generated (USD ~XX million) as well as number of vehicles serviced (XX units) followed by SUV, Hatchback, Compact SUV and MPV. Affordability of vehicles classified under Sedan segment is the major determinant for the demand of purchasing and servicing these type of vehicles.

By Age of Car

Vehicles in the age group 0-3 years contributed the majority share of XX% on the basis of number of vehicles serviced in FY’20 followed by age group between 3-6 years, 6-9 years, and 9 years & above. The number of vehicles serviced between the age group 0-3 years has been on the rise since FY’18 due to the import tax reduction to 0% for cars imported from ASEAN region which enhanced the growth prospect of passenger vehicle sales.

By Region

Northern and Southern region of Vietnam dominated the automotive aftermarket with a combined share of XX% in terms of number of vehicles serviced in FY’20.

By Booking Mode

Offline medium remained the preferred choice of consumers for consuming aftermarket services in FY’20, garnering a revenue share of XX% on the basis of number of vehicles serviced. Due to the lack of technological adoption by OEM and multi brand workshops, online booking system has remained inefficient over the years.

By Service Split

Vehicle maintenance services contributed in generating a revenue of USD ~XX million in FY’20, garnering up to XX% of revenue share. Services under vehicle maintenance includes oil change, engine oil filter, drain plug gasket, brake fluid, tire re-alignment, and radiator coolant among others.

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Vietnam Spare Parts Aftermarket Industry

Vietnam’s spare parts aftermarket industry generated a revenue of USD ~XX million in FY’20, expanding at a CAGR of XX% in between FY’15 and FY’20.  Demand for spare parts is indirectly driven by the fast growing middle class shifting their outlook from availing public transport to private transportation medium. As more consumers utilize private transportation, demand for aftermarket services especially for spare parts replacement will rise. Major Tier 1 spare parts suppliers in Vietnam include Denso, Yazaki, Sumitomo Electric, and VPIC among others. Major Tier 2/3 spare parts suppliers include Casumina, Kumho Tires, Estec, and Pinaco among others.

Vietnam Spare Parts Aftermarket Industry Segmentation

By Type of Spare Parts (Tires, Battery, Shocks & Struts, Alternator & Starter, Drain Plug Gasket, and Oil & Lubricants) : Tires and batteries dominated the spare parts aftermarket in FY’20, contributing to a combined share of XX% of the overall revenue generated by the industry followed by shocks & struts, oil & lubricants, alternator & starter, and drain plug gasket.

Competitive Landscape in Vietnam Automotive Aftermarket Service Industry, FY’20

The competition structure in Vietnam automotive aftermarket service industry is highly competitive with OEM/Authorized dealers competing with Multi Brand and unorganized players for the market share. These workshops compete on the basis of services offered, service fee, number of cars serviced, quality of service, sourcing of spare parts, and booking mode. Warranty on auto parts is regarded as one of the major parameters of competition between OEM service companies. OEM automotive servicing companies offer periodic maintenance pricing packages based on kilometers driven or completion of certain months of availing a vehicle. On the other hand, multi brand workshops offer vast portfolio of vehicle services at lower prices compared to OEM service companies.

Future outlook of Vietnam Automotive Aftermarket Service Industry

The market size based on revenue is expected to grow at a five-year CAGR of XX% increasing from USD XX million in FY’20 to USD XX million in FY’25. The market size based on number of vehicles serviced is expected to grow at a five-year CAGR of XX% from FY’20 to FY’25 increasing from XX cars serviced in FY’20 to XX units in FY’25. Vehicle parc is estimated to stand at XX units by the end of FY’25E. Surging vehicle parc will positively contribute to the growth of the automotive aftermarket services industry. Small and unorganized workshops will continue to dominate the aftermarket services industry contributing to a share of XX% the basis of number of vehicles serviced. Number of vehicles serviced will continue to increase rapidly in the coming years as government initiatives such as periodic inspection every 18 months will need car owners to maintain and service their vehicles regularly.

Key Segments Covered in Vietnam Automotive Aftermarket Service Industry:-

By Type of Workshop

OEM/Authorized

Large Multi Brand

Small/Unorganized

By Type of Vehicle Serviced

Sedan

SUV

Hatchback

Compact SUV

MPV

By Age of Car

0-3 years

3-6 years

6-9 years

9 years & above

By Region

North

Central

South

By Booking Mode

Online

Offline (including telephonic as well as Physical Booking)

By Service Split

Maintenance

Car Care

Accident Repair

Vietnam Spare Parts Aftermarket Segmentation

By Type of Spare Parts

Tires

Battery

Shocks & Struts

Oil & Lubricants

Drain Plug Gasket

Alternator & Starter

Others

Key Target Audience:-

Automotive Companies

OEM Vehicle Service Companies

Multi Brand Vehicle Service Companies

Automotive Spare Parts Companies

Government Bodies

Automotive Associations

Time Period Captured in the Report:-

Historical Period: 2015-2020

Forecast Period: 2020-2025

Automotive Aftermarket Service Companies in Vietnam:-

OEM/Authorized Vehicle Service Companies

Hyundai Vietnam

Toyota Motors Vietnam

Honda Vietnam

Mitsubishi Vietnam

Ford Vietnam

Suzuki Vietnam

Vinfast

Lexus

THACO

Multi Brand Vehicle Service Companies

Vietnam Car Care

Thanh Phong Auto

Vuong Phat Auto

Garage Doanh Workshop

Thanh Tam Auto

Vu Khoi Garage

Pham Vu

Ngyuen Khoi

Liem Gia Phat

Spare Part Suppliers

Denso

Yazaki

Sumitomo Electric

Toyota Boshoku

Harada

Hanoi Plastics

Casumina

Kumho Tires

Estec

Pinaco

Tam Hop

Key Topics Covered in the Report:-

Vietnam Automotive Aftermarket Service Industry Overview

Value Chain Analysis of Vietnam Automotive Aftermarket Service Industry

Ecosystem of Major Entities of Vietnam Automotive Aftermarket Service Industry

Market Size of Vietnam Automotive Aftermarket Service Industry on the basis of Revenue and Number of Vehicles Serviced, FY’15-FY’20

Passenger Vehicle Sales in Vietnam, FY’15-FY’20

Vehicle Parc in Vietnam, FY’15-FY’20

Vietnam Automotive Aftermarket Service Industry Segmentation, FY’20

Competitive Analysis of Vietnam Automotive Aftermarket

Competition in Vietnam OEM Automotive Aftermarket Service Industry

Competition in Vietnam Multi Brand Automotive Aftermarket Service Industry

Company Profiles of Hyundai, Toyoto Motors, Vinfast, Mitsubishi Motors, Honda, Vietnam Car Care, Thanh Phong Auto, Vuong Phat Auto, Garage Doanh Workshop and Thanh Tam Auto

Pricing of Major OEM Automotive Service Companies

Pricing of Major Multi Brand Automotive Service Companies

Trends and Developments in Vietnam Automotive Aftermarket Service Industry

Issues and Challenges in Vietnam Automotive Aftermarket Service Industry

Porter 5 Forces Analysis of Vietnam’s Automotive Aftermarket Service Industry

Government Regulations in Vietnam Automotive Aftermarket Service Industry

For More Information on the research report, refer to below link:-

Vietnam Automotive Aftermarket Service Market

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