Import Tax Reduction and Free Trade Agreements
In
order to support the growth of automotive industry in motorcycle dominated Vietnam,
the government, post 2018, has implemented policies and regulations for the
reduction of new car prices. Import tax reduction to 0% for automotive parts
and components from ASEAN region to free trade agreements signed with European
Union extensively supports the sales of new passenger vehicles from foreign
brands, acting as a deterrent to the used car industry. Coupled with that, the
reduction of vehicle registration fees by 50% for domestically assembled and
produced vehicles has contributed to the development of the domestic automotive
manufacturing industry such as Vinfast negatively impacting the used car
ecosystem.
Lack of Supporting Industries
Vietnam suffers from a poor localization rate due to
underdevelopment of the supporting industries. For cars, the localization rate
stood at a meagre 7-10% as of 2021, which
is considerably lower than the fellow ASEAN countries of Thailand and Malaysia. As of 2021, there are currently ~100 Tier 1 Suppliers and less than 150
Tier 2 and Tier 3 spare parts supplier in Vietnam, which is considerably low
considering 30,000 spare parts are
required on an average to build a passenger vehicle. The lack of
development of the supporting industries especially spare parts market, acts as
a deterrent for repair services of used cars as it increases customer waiting
time.
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.
Impact of COVID-19 on Used Car Industry
Even
though the used car industry post 2018 has witnessed a decline in sales volume,
but the advent of COVID-19 is contributing towards the positive outlook of the
industry. Increased awareness on health and hygiene is acting as a catalyst for
the shift in consumer’s preference from availing public transportation to
private transportation medium. The shift in consumer’s preference is expected
to contribute in the growth of passenger vehicle sales in coming years. Coupled
with that, government initiatives to ban motorbikes by 2030 and development of
road infrastructure facility is contributing in the shift towards consumer
adapting to passenger vehicles compared to historically prevalent motorbikes.
The publication titled ‘Vietnam
Used Car Market Outlook to 2026: Driven by growing disposable income and
shifting consumer preference from two-wheelers to four-wheelers” covers the overview of used car industry by analyzing
historical statistics and corresponding developments in the used car market.
Reduction of import tax to 0% for cars imported from ASEAN region, free trade
agreements signed with European Union and support to the domestic automotive
industry have subsequently deterring the growth of used car market post 2018.
However, initiatives such as ban on motorbikes, fast growing middle class
population and affordability of used vehicles is expected to contribute to the
surging growth of the industry in coming years. Given the fragmented completion
structure in the used car market, analysts have elaborated on competitive
landscape of major captive dealers, multiband dealers and classified platforms
on the basis of services offered and operational parameters. The report also
covers a snapshot on online and offline used car business model, value chain
analysis, growth drivers, buying decision parameters, business model, SWOT
analysis, impact of COVID-19 and risk factors governing the future outlook of
industry. The report also provides comprehensive insight on the market size and
segmentation of the industry. Further, the report covers overview of the
supporting industries such as auto-finance, aftersales and spare parts industry
on the basis of market size. The report highlights the pain points of the
auto-finance market along with detailed company profiles of major banking
institutions and NBFCs. The report concludes with projections for future
industry market size, market segmentations and analyst take on future market
scenario.
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:-
Related Reports:-
South Korea Used Car Market Outlook To 2026: Relaxed Government
Regulations on Big Companies Entering Used Car Market to Facilitate Increase in
the Used Cars Sales and Improve the Organized Market Share
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