Friday, 1 November 2019

Vietnam Used Car Market Outlook to 2025


The report titled Vietnam Used Car Market Outlook to 2025 - By Type (Sedans, SUV’s, MPVs, Hatchbacks, CTVs and Others), By Vehicle Age (0-2 Years, 2-4 Years, 4-6 Years and more than 6 Years), By Cities (Hanoi, HCMC, Hai Phong, Da Nang and Others) and By Brand (Toyota, Mazda, Kia, Honda, Ford, Chevrolet, Mitsubishi and Others)provides a comprehensive analysis of the Used Car market in Vietnam. The report also covers the overview and genesis, market size in terms of gross transaction value and sales volume, business models, trends and developments, issues and challenges, regulations in Vietnam, snapshot on Vietnam used car auto finance, online auto classified. The report provides value chain and SWOT analysis, Buying decision parameters, competitive scenario and company profiles. The report concludes with market projection and analyst recommendations highlighting the major opportunities and cautions.
Vietnam Used Car Market Overview and Size
Vietnam Used Car market in terms of sales volume increased at a double digit CAGR over the review period 2013-2018. The market was observed to be at the early growth stage owing to the faster vehicle replacement rate, reduction in new car launch time, growing middle class population, increasing average ticket size and reduction in import duty on new cars. In Vietnam, people prefer to buy a used car as new ones are expensive and for middle or lower income group people, used cars have become more popular choices.
Vietnamese government has also adopted certain strategies to reduce new car prices in the domestic market such as providing a SCT (Special Consumption Tax) rebate on certain automobiles depending on their engine displacement values. This led to intensive competition in the used car market as new car sales are growing at a faster pace vis a viz used car.
Vietnam Used Car Market Segmentation
By Type of Car: Sedans accounted for highest market share in 2018. Sedans remained the most popular car type as they are perceived as conferring a higher social status. SUV’s accounted the second highest market share followed by Hatchbacks and Cross Type Vehicles (CTV’s).
By Vehicle Age: Used cars under the age bracket of 2-4 years accounted for highest market share in 2018 due to the average ownership period of 3.8 years in Vietnam. The sale of used cars is followed by 4-6 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: The northern regions accounted for the highest share as this region is prone to floods due to which the average ownership period is usually low 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 Cities: Due to high population and developed infrastructure, Hanoi and Ho Chi Minh City accounted for the highest share in terms of sales volume in 2018. Hai Phong and Da Nang along with other cities contributed the remaining share in total sales volume of used cars in the country.
By Price Range: 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 due the faster replacement rate along with the depreciation charged over the years on new vehicles.
By Brand: 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 followed by Ford, KIA, Mazda 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 2018.
Competitive Landscape
Used car market in Vietnam is highly fragmented with presence of more than 1500 -2000 organized and unorganized dealers across all the cities in Vietnam. Organized dealers include Multi Brand Dealership Outlets (Anycar, Viet Han Used Car, Hien Toyota, Hoa Binh Auto and others) and captive dealers such as Thanh Xuan Ford, Mercedes Benz An Du, Hyundai Dong Do and Toyota an Suong. Online Auto-Classifieds has a highly concentrated space with presence of four to five major companies such as Bonbanh, Oto, Carmudi, Choxe, Chotot and others capturing almost 80.0% share.
Vietnam Used Car Market Future Outlook
In future, it is anticipated that used car sales volume will be fuelled by increasing government initiatives such as EVFTA Agreement and Ban on Motorbikes, growing middle class population, increasing disposable income, increasing car replacement rate and growing customer confidence along with rise in average ticket size of a used car over the years.
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
Key Topics Covered in the Report:-
Vietnam Used Car Market Overview and Genesis (Overview and Genesis, Business Cycle Graph)
Vietnam Used Car Market Ecosystem
Vietnam Used Car Market Value Chain Analysis
Vietnam Used Car Market Business Model
Used Car Market Size Vietnam
Vietnam Used Car Market Segmentation
Snapshot of Vietnam Used Car Finance
Snapshot of Vietnam Online Used Car Market
Buying Decision Parameters in Vietnam Used Car Market
Trends and Developments in Vietnam Used Car Market
Issues and Challenges in Vietnam Used Car Market
Vietnam Used Car Market Regulations
SWOT Analysis Vietnam Used Car
Vietnam Used Car Market Competition Scenario
Vietnam Used Car Market Future Projection, 2018-2025E
Future Outlook of Vietnam Used Car Market Segmentations, 2018-2025E
Analyst Recommendations
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