SUVs, Crossovers dominate high-end segment in Vietnam
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Among consumers willing to spend at least VND1 billion ($43,135), the preference is for SUVs and Crossovers over sedans. In recent years, high ground clearance vehicles have gradually become the number one choice for the majority of Vietnamese consumers, having grown steadily in number sales and variety over the years. In contrast, the D-class sedan segment has seen low demand and limited variety.
Sales of SUV and Crossovers (CUV) vehicles around the price of VND1 billion ($43,135) have risen steadily over the years. While 2014 saw only around 13,000 units sold, sales had more than doubled by 2018 at 24,264 units. 2018 only saw a slight increase over 2017, but this was because a decree on import conditions prevented many firms from importing these vehicles for most of the year.
According to the Vietnam Automobile Manufacturers’ Association (VAMA), consumers have a choice of 10 SUV/CUVs in the VND1 billion price range. Car dealers have noted that almost all brands in Vietnam have at least one product in the SUV/CUV segment.
Average sales per model was around 3,100 vehicles a year.
Th SUV/CUV segment is predicted to boom in 2019, as firms get used to the new regulation and find stability in importing new vehicles.
Meanwhile, from 2014 up to now, the D-size sedan segment has featured the same models, namely, Toyota Camry, Mazda6, Honda Accord, Nissan Teana and the Kia Optima, which was introduced last year.
In the last 5 years, sales of D-size sedans reached a peak in 2016 at 8,148 units. The introduction of the Kia Optima in 2018 raised the number of models in the segment to 6, but annual sales fell to only 7,612 units.
In 2018, Toyota Camry dominated the D-segment at over half of the 4,503 units sold, while the remaining models saw little growth. Total sales have nevertheless been fairly stable, hovering around 6,000 or 7,000 over the years.
Vietnam’s total car sales increased 5.8 percent to 288,683 units in 2018 from a year ago, according to the Vietnam Automobile Manufacturers’ Association (VAMA).
Questions & Answers
Q.How did a decree on import conditions impact SUV and Crossover sales in 2018?
How did a decree on import conditions impact SUV and Crossover sales in 2018?
A decree on import conditions prevented many firms from importing these vehicles for most of 2018. This led to only a slight increase in SUV and Crossover sales compared to 2017, despite previous steady growth.
Q.Which specific models are mentioned as D-size sedans in the Vietnamese market?
Which specific models are mentioned as D-size sedans in the Vietnamese market?
The D-size sedan segment features models such as the Toyota Camry, Mazda6, Honda Accord, Nissan Teana, and the Kia Optima. The Kia Optima was introduced last year, increasing the number of models in this segment.
Q.What was the sales performance of D-size sedans in 2018 compared to their peak?
What was the sales performance of D-size sedans in 2018 compared to their peak?
In 2018, D-size sedan sales fell to 7,612 units, down from their peak of 8,148 units in 2016. The Toyota Camry dominated sales, accounting for over half of the 4,503 units sold in that segment.
Q.Why is the SUV/CUV segment expected to grow significantly in 2019?
Why is the SUV/CUV segment expected to grow significantly in 2019?
The SUV/CUV segment is predicted to boom in 2019 because firms are becoming accustomed to the new import regulations. This stability in importing new vehicles is expected to drive further growth.
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