The publication titled ‘Vietnam
Used Car Market Outlook to 2026 (Second Edition): Driven by growing disposable
income and shifting consumer preference from two-wheelers to four-wheelers’
provides a comprehensive
analysis of the used car industry by analyzing historical statistics and
corresponding developments in the used car market. The report covers various aspects
including used car industry market size on the basis of gross transaction value
and sales volume, overview and genesis, value chain analysis, ecosystem, snapshot
on online and offline used car business model, growth trends and developments,
buying decision parameters, business model, SWOT analysis, Porter 5 Forces
Analysis, rules and regulations, impact of COVID-19, business model of Oto,
Carmudi and Bonbanh and risk factors governing the future outlook of industry.
Insights
on competitive landscape of used car industry and cross comparison between
major players operating in the ecosystem namely, captive dealers, multi brand
dealers and classified platforms is also covered in the report on the basis of
company profile, process of selling used cars, major services, USP, financing
facilities, popular car brands, total number of used car listings, vehicle
inspection & valuation services, customer consulting services, aftersales
services and business model. Further, the report covers overview of the
supporting industries such as auto-finance, aftersales and spare parts industry
on the basis of market size (total credit loans disbursed and total outstanding
loans). The report highlights the pain points of the auto-finance market along
with detailed company profiles of major banking institutions and NBFCs.
The
report also focuses on the Vietnam Used Car Market Segmentation by Type
of Vehicle (Sedans, SUVs, MPVs Hatchback and Others); By Vehicle Age (0-3
years, 3-5 years, 5-7 years and More than 7 years); By Region (Northern,
Central and Southern); By Price (VND 0-200 Mn, VND
200-400 Mn, VND 400-600 Mn, More than VND 800 Mn); By Mileage (0-30,000 Km,
30,000-60,000 Km, 60,000-80,000 Km and More than 80,000 Km); By Vehicle Brand
(Toyota, Ford, Kia, Honda, Hyundai and Others); By Supply
Type (Domestic and Imported), By Mode of Sales (Online and Offline); By Channel Purchase (Organized
Purchase and Non-Organized Purchase); By
Financed vs Non-Financed and By Financing Type (Organized Financing and
Unorganized Financing). Vietnam Used Car Market report concludes with
projections for the future of the industry including forecasted gross
transaction value and sales volume by 2026, and analysts’ take on the future
highlighting the major opportunities.
Vietnam Used Car Market Overview and Size
Vietnam‘s used car market experienced a slow
down between 2015 and 2021 on the basis of gross transaction value. The decline
in GTV as well as sales volume of used car industry is attributed to various
government initiatives to support the growth of domestic automotive industry,
and policies implemented such as reduction in import tax to 0% for cars
imported from ASEAN region. Historically, motor bikes have always remained 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 new
passenger cars has been growing significantly in recent times which in turn is
contributing to the growth of automotive industry. Also, increased awareness on
health and hygiene followed by the advent of COVID-19 is acting as a catalyst
for the shift in consumer’s preference towards availing private transportation
medium compared to public transportation. Leveraging the growing
internet penetration rate, various online classified players launched their
operation in Vietnam post 2013, such as Oto and Carmudi. The increasing
preference of consumers towards availing digital medium for their purchases has
enhanced the sales prospect via C2C channel through classified platforms.
By
Type of Vehicle (Sedans, SUVs, Hatchback, MPVs and Others): Sedans
accounted for the highest market share of in the year 2021. Sedans remained the
most popular car type in the country due to its affordable price and higher
average life as compared to Hatchback and MPVs. SUV’s accounted the second
highest market share followed by Hatchbacks, and MPVs.
By
Vehicle Age (0-3 years, 3-5 years, 5-7 years, More than 7 years): Used
cars under the age bracket of 0-3 years accounted for highest market share in
2021 attributed to the average depreciation rate of new vehicles in Vietnam
which is around 3 years due to poor road condition which leads to wear and tear.
The sale of used cars is followed by 3-5 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 (Northern, Central and Southern): The
northern regions accounted for the highest share in 2021, as this region is
prone to floods due to which the average replacement period is usually high 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
Price (VND 0-200 Mn, VND 200-400 Mn, VND 400-600 Mn, and More than VND 800 Mn): 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 in 2021 due the faster replacement rate along with the
depreciation charged over the years on new vehicles. The
average resale price at which Sedan’s and SUV’s are sold in Vietnam lies within the price band of VND 400-600 million,
which are the top two preferred car types by Vietnamese consumers. The advent
of COVID-19 negatively impacted the financial condition of consumer’s and
therefore, demand for high end cars
such as Mercedes Benz and Audi which costs more than VND 800 million
declined in 2021.
By Mileage (0-30,000 Km, 30,000-60,000 Km,
60,000-80,000 Km, and More than 80,000 Km):
Vehicles not driven for 30,000-60,000 Km are most preferred
in Vietnam in 2021. Consumer’s purchasing a used vehicle prefers car which has
not been used extensively, as the quality of vehicles might drastically fall
with the increase in usage.
By Vehicle
Brand (Toyota, Kia, Hyundai, Ford, Honda and Others): 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 of
followed by KIA, Hyundai, Ford 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 2021.
By Supply Type (Domestic and Imported): Domestic supply accounted for the highest share on the basis
of sales volume in 2021. Imported supply of used vehicles is financially taxing
to the consumers due to various taxes and levy’s charged.
By Channel of Purchase (Non-Organized and Organized): Majority of
the used car purchases in
Vietnam was through unorganized channel. Presence of large number of unorganized multi brand dealers spread across the
rural regions of Vietnam contributed to the majority share of unorganized
purchases.
By Mode of Sales (Offline and Online):
Sale of used cars through offline medium was the preferred choice of
consumers. Low internet penetration
rate in Vietnam is a major reason for the lack of sales through online
medium.
By Financed vs Non-Financed: Non-financed purchases of used car accounted
for the highest share on the basis of sales volume in 2021 compared to financed
purchases.
By Financing Type (Organized
Financing and Unorganized Financing): In terms of used cars sold through financing options, organized
financing captured the highest share in 2021. Banking institutions, NBFCs and
captive companies such as Toyota Financial Service constitutes the organized
financing ecosystem.
Overview of Vietnam Auto-Finance
Market and Auto-Insurance Market
Banking institutions, NBFCs and captive
companies are the major entities offering financing facilities to customers
willing to purchase used car. Banking institutions dominate the market when it
comes to credit disbursal. The leading banks for the used-car segment are VP Bank, TP Bank, VIB and Techcom Bank.
Banks like Shinhan Bank and VIB are preferred by the people in general, for
their lower interest-rate loans.
Vietnam Auto-finance market is expected to expand at a CAGR of ~17.6% in
between 2021 and 2025 on the basis of total credit loans disbursed. Growth in
auto-insurance market is also expected which is estimated to grow at a CAGR of
~10.8%.
Overview of Vietnam
Aftersales Service Industry
The automotive aftermarket service industry in Vietnam recorded a positive CAGR of ~14.9% on
the basis of revenue in between 2015 and 2020. Surging vehicle parcs coupled with fast growing middle class population
willing to avail private transportation medium due to increased awareness on
health and hygiene followed by the advent of COVID-19 are some of the major
determinants for the growth of automotive sector in Vietnam.
Overview of Vietnam
Spare Parts Aftermarket Industry
Vietnam’s
spare parts aftermarket industry has been expanding at a CAGR of ~4.2% in
between 2015 and 2020. Demand for
spare parts is driven by the fast growing middle class shifting their outlook from availing
public transport to private transportation medium. As more and more consumers
depend on their private transport, there would exist a demand for aftermarket services especially for spare parts replacement.
Vietnam’s spare parts industry is majorly reliant on imports, therefore the domestic manufacturing firms
have not been able to establish their presence as of 2021. Government
initiatives to develop the domestic
spare part manufacturing ecosystem will act as a major growth driver for
the spare parts aftermarket.
Competitive Landscape in Vietnam Used
Car Market
Vietnam’s
used car market is highly fragmented with presence of large number of organized
and unorganized multi brand dealers. Integration of online classified platforms
such as Carmudi and Bonbanh in recent years along with the presence of captive
dealers restricts the dominance of single player in the market. A notable shift
in consumer preference post COVID-19 has contributed in the emergence of online
ecosystem. Dealership networks which depends on the sales through their retail
network is establishing their online presence in order to gain traction across
Vietnam. Therefore, one of the important areas of competition would be the
online visibility of players in coming years. Captive, multi brand and
classified players compete on the basis of services offered such as vehicle
inspection & valuation, financing & warranty facilities and quality
checks among others.
Vietnam Used Car Market Future Outlook and Projections
The market size on the basis of gross
transaction value is expected to grow at a five-year CAGR of ~10.6% by 2026.
The market size on the basis of sales volume is also expected to grow at a similar
rate. It is anticipated that used car sales volume will be fueled
by increasing government initiatives such as EVFTA Agreement and Ban on
Motorbikes by 2030, growing middle class population, shift in consumer
preference towards availing private transportation medium post COVID-19, increasing
disposable income, increasing car replacement rate and growing customer
confidence.
Key Segments Covered in Vietnam Used Car Industry:-
Vietnam Used Car Market
By Type of Vehicle
Sedans
SUVs
MPVs
Hatchbacks
Others
By Vehicle Age
0-3 years
3-5
years
5-7
ears
More
than 7 years
By Region
Northern
Central
Southern
By Price
VND
0-200 Million
VND
200-400 Million
VND
400-600 Million
More
than VND 800 Million
By Mileage
0-30,000
Km
30,000-60,000
Km
60,000-80,000
Km
More
than 80,000 Km
By Vehicle Brand
Toyota
Ford
Kia
Honda
Hyundai
Others
By Supply Type
Domestic
Imported
By Mode of Sales
Online
Offline
By Channel Purchase
Organized
Purchase
Non-Organized
Purchase
By Financed vs Non-Financed
By Financing Type
Organized
Financing
Unorganized
Financing
Vietnam Auto-Finance Market and Auto Insurance Market
Total Car Loans Disbursed
Total Outstanding Loans
Auto-Insurance Market on the basis of Gross Premium
Key Target Audience
Captive
Dealers
Multibrand
Dealers
Classified
Players
Banks,
and NBFCs providing Financing Facilities
Automotive
Companies
Government
Bodies
Time Period Captured in the Report:-
Historical Period: 2015-2021
Forecast Period: 2021-2026F
Vietnam Used Car and Auto-Finance Players
Major Captive Dealers
Thanh Xuan Ford
Mercedes Benz An Du
Hyundai Dong Do
Toyota An Suong
Hien Toyota
Major Multi Brand Dealers
Anycar
Viet Han Used Car
Hoa Binh Auto
Viettin Auto
Major Classified Players
Oto
Bonbanh
Carmudi
Chotot
Choxe
Major Banks providing Auto-Financing Facilities
VIB Bank
TP Bank
VP Bank
Standard Chartered
Vietin Bank
Techom Bank
Woori Bank
Shinhan Bank
Major NBFCs and Captive Companies providing Auto-Financing
Facilities
Mirae Asset
Toyota Financial Service
BMW Financial Service
Key Topics Covered in the Report:-
Overview of Vietnam Used Car Market
Ecosystem of Vietnam Used Car Industry
Vietnam Used Car Online and Offline Business Model
Market Size of Vietnam Used Car Industry (Gross Transaction
Value and Sales Volume)
Market Size of Vietnam Used Car Industry on the basis of B2C,
C2B and C2C Sales Channel
Vietnam Used Car Industry segmentation (By Type of Vehicle,
By Vehicle Age, By Region, By Price, By Mileage, By Vehicle Brand, By Supply
Type, By Mode of Sales, By Channel Purchase, By Financed vs Non-Financed and By
Financing Type)
Cross Comparison of Major Dealers and Classified Players
(Vehicle Inspection, Valuation of Car, Car Finance Service, Aftersales Service,
Car Warranty Service, Certification, Customer Consulting Service, Workshops,
Financing and Warranty Facilities)
Company Profile of Captive Dealers, Multi Brand Dealers and
Classified Players (Company Profile, Process of Selling Used Cars, Major
Services, USP, Financing Facilities, Popular Car Brands, Total Number of Used
Car Listings, and Business Model)
Growth Drivers and Challenges to Vietnam Used Car Market
Industry trends and developments
Rules and Regulations by Government Bodies
Impact of COVID-19 and Future Outlook of Industry
Porter 5 Forces Analysis of Vietnam Used Car Industry
SWOT Analysis of Vietnam Used Car Industry
Buying Decision Parameters of Consumer’s
Overview of Auto-Finance and Auto-Insurance Market in Vietnam
Market Size of Auto-Finance and Auto-Insurance Market (Total
Credits Disbursed, Total Outstanding Loans)
Company Profile of Banking Institutions, NBFCs and Captive
Auto-Financing Companies (Company Overview, Products, USP, Business Strategy,
Loan Amount, Payment Methods, and Interest Rate Charged)
Overview of Aftermarket Services Industry in Vietnam
Overview of Spare Parts Industry in Vietnam
Analyst Recommendation
For More Information on
the research report, refer to below link:-
Vietnam
Used Car Market
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