Vietnam Used Car Market is expected to expand at a CAGR of ~10.6% in terms of Gross Transaction Value in between 2021-2026: Ken Research

  • Government initiatives to ban motorbikes by 2030 and improved road condition to curb traffic congestion will act as a catalyst for the shift in consumer preference from two wheelers to four wheelers.
  • The preference towards used vehicles is expected to surge rapidly due to its lower price compared to their newer counterparts which is favorable to the fast growing middle class population in Vietnam.

GURUGRAM, India, May 16, 2022 /PRNewswire/ — 

Digital is the Future

Entities operating in Vietnam Used Car Industry are enhancing their digital presence to increase their online visibility among consumers. The era of COVID-19 witnessed consumer’s shifting preference in utilizing online platforms for their purchases compared to the traditional method of physical visits. Thereby, dealerships network is leveraging the opportunity to extend information to customers through their social media platform and collaboration with classified platforms.

Shift in Consumer Preference towards availing Private Transportation Medium

Due to the increased awareness on health and hygiene followed by the advent of COVID-19, consumers are preferring availing private transportation compared to public transport medium. Passenger vehicle sales in Vietnam is expected to expand at a CAGR of ~17.6% in between 2021 and 2026. Rapid urbanization in coming years in northern and southern region of country especially in cities such as Ho Chi Minh and Hanoi for better employment opportunity and increased financial stability will contribute in consumer’s adaptation to four wheeler vehicles compared the predominant motorbike usage.

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Improved Road Condition and Ban on Motorbikes by 2030

Historically, motorbikes have been the predominant medium of transportation in Vietnam attributed to its flexibility and affordability. However, government initiative to ban motorbikes in 2030 in Hanoi is going to contribute to the shift in consumer preference towards availing four wheeler vehicles. Weak road condition in Vietnam has been a challenge which negatively impacts the traffic condition in the country. With recent policies by the government to improve road infrastructure facilities to curb traffic congestion, preference towards passenger vehicles is expected to witness a boost. Further, the government of Vietnam has proposed a regulation wherein import of used vehicles older than 5 years has been discontinued which is expected to boost the sales of domestically produced used vehicles.

Fast Growing Middle Class Population and Growth in Disposable Income

GDP per capita of Vietnam in 2020 stood at USD 2,785, which is expected to gradually rise and attain the status of fastest growing economy in the ASEAN region by the end of 2022. The rise in disposable income of consumers is enabling them to purchase passenger vehicles. However, due to lack of infrastructural ability and possible cause of wear & tear, the depreciation rate of newer vehicles in the first 3 years is high, which serve as an opportunity for the used car market to integrate in future. Over the coming decade, an addition of 23.2 million people to the middle class of Vietnam is expected, taking the population of middle-class people in the country to about 56 million people by the year 2030.  Rapid urbanization in the region complements the demography change as consumers are shifting to urban cities for better job opportunities. Increasing financial stability of consumers will lead them in availing private medium of transportation for better convenience compared to public transportation.

Support from Automobile Financing Entities

Financial entities extending support to provide credit to customer’s willing to avail private transportation medium will shape the Vietnamese Used Car Market. It is estimated that in between 2021 and 2025, total credit loans disbursed will expand at a CAGR of ~17%. Financing facilities helps the middle class population in availing immediate loan for automotive purchases. Banking institutions, NBFCs and Captive Companies are the major entities which contributes in providing financial support to the customer. In 2025, it is estimated that banks would dominate the auto-financing market due to the lower interest rate charged compared to NBFCs or captive dealers.

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-wheelerscovers 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.

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

By Mode of Sales

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

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

South Korea Used Car market increased at a CAGR of 0.8% (by sales volume in units) during 2015-2021P. The market has reached its maturity phase. A combination of restrictions on public transport and a movement towards private travel has accelerated the sale of used cars. Moreover, the availability of various financing facilities offered through banks and NBFIs, high internet penetration and increased government spending have been instrumental factors in facilitating the growth of the South Korean used car market.

Malaysia Used Car Market Outlook To 2025 (Second edition) – Growth of Online Used Car Platforms and increased shift from using public transport to personal cars, fuelled by Covid-19 to accelerate Industry’s Growth

Malaysia’s Used Car sector is in the late growth phase, having grown at a CAGR of ~1% during 2015-2020. Increasing demand for private vehicles, increasing purchasing power, easy availability of finance, increased govt. incentives to ensure the sale of new cars are the main reasons behind positive growth in used car revenue. Other major drivers include drop-in use of public transport due to the pandemic and emergence of online players which have made the overall process of selling and buying used cars smoothly, thus boosting sales.

Philippines Used Car Market Outlook To 2026 (Third Edition): Driven by the Pandemic Incited New Opportunities for Used Car Dealers and Increased Penetration in the Online Space for Used Car Transactions

Philippines Used Car market is in its growth phase, having registered a five-year CAGR of xx% (2016-2021) as the total value of sales increased from PHP xx Billion in 2016 to PHP xx Billion in 2021. The market size by volume increased from xx cars in 2016 to xx cars in 2021 while registering a five-year CAGR of xx% in the period. There are a number of growth drivers which has resulted in expansion of the market; these include a surge in the demand of private cars, increasing per capita income, convenient financing facilities, increased internet penetration and enhanced digitalization of the used cars space. Customers of the used cars can be divided according to their needs generally belonging to the working age group.

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