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Vietnam Used Car Market Outlook to 2026 (Second Edition)

Driven by growing disposable income and shifting consumer preference from two-wheelers to four-wheelers

Region:Asia

Author(s):Mayank Bhasin, Mayukh Sen

Product Code:KR1123

Download Sample Report
Published On

February 2022

Total pages

72

About the Report

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” 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 the 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, the impact of COVID-19, the business model of Oto, Carmudi and Bonbanh and risk factors governing the future outlook of the industry. Insights on the competitive landscape of the 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, the 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 an overview of the supporting industries such as auto-finance, aftersales and spare parts industry on the basis of the 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 Hatchbacks 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

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.
 

Vietnam Used Car Market Segmentation

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 the heavy body type, better engine capacity (high horsepower) and have high resale 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 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

Products

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

Companies

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
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

Table of Contents

1. Executive Summary

2. Vietnam Used Car Market Overview

2.1 Overview and Genesis of Vietnam Used Car Market

2.2 Ecosystem of Major Entities in Vietnam Used Car Market

2.3 Value Chain Analysis

2.4 Role of Entities in Value Chain

2.5 Vietnam Used Car Market Offline Business Model

2.6 Vietnam Used Car Market Online Business Model

3. Market Size of Vietnam Used Car Industry on the basis of Gross Transaction Value (GTV) and Sales Volume, 2015-2021

3.1 New Vehicle Sales in Vietnam, 2015-2021

3.2 Vietnam Used Car Market Size on the basis of GTV and Sales Volume, 2015-2021

3.3 Vietnam Used Car Market on the basis of C2B and C2C Split, 2015-2021

3.4 Vietnam Used Car Market Size on the basis of B2C Split, 2015-2021

4. Vietnam Used Car Market Segmentation, 2021

4.1 By Type of Vehicle (Sedans, SUVs, MPVs Hatchback and Others)

4.2 By Vehicle Age (0-3 years, 3-5 years, 5-7 years and More than 7 years)

4.3 By Region (Northern, Central and Southern)

4.4 By Price (VND 0-200 Mn, VND 200-400 Mn, VND 400-600 Mn, More than VND 800 Mn)

4.5 By Mileage (0-30,000 Km, 30,000-60,000 Km, 60,000-80,000 Km and More than 80,000 Km)

4.6 By Vehicle Brand (Toyota, Ford, Kia, Honda, Hyundai and Others)

4.7 By Supply Type (Domestic vs Imported)

4.8 By Mode of Sales (Online vs Offline) and By Channel Purchase (Organized Purchase vs Non-
Organized Purchase)

4.9 By Financed vs Non-Financed

4.10 By Financing Type (Organized Financing vs Unorganized Financing)

5. Analysis of the Vietnam Used Car Industry

5.1 SWOT Analysis

5.2 Porter 5 Forces Analysis

5.3 Trends and Developments

5.4 Buying Decision Parameters of Consumer’s

5.5 Issues and Challenges

5.6 Impact of COVID-19

5.7 Government Regulations

6. Company Profile of Major Dealers

6.1 Cross Comparison of Multi Brand Dealers in terms of Average Monthly Sales, Number of Stores, Geographic Presence, Top-Selling Brands, Financing, 6.2 Warranty, Services Offered, Vehicle Inspection, Aftersales Service, Presence of Workshops, Certifications and Customer Service

6.2 Company Profile of Viet Han Used Cars

6.3 Company Profile of Hoa Binh Auto

6.4 Company Profile of Anycar.vn

6.5 Cross Comparison of Captive Dealers in terms of Number of Stores, Geographic Presence, 
Top-Selling Brands, Warranty, Services Offered, Vehicle Inspection, Aftersales Service, 
Presence of Workshops, Certifications and Customer Service

6.6 Company Profile of Thanh Xuan Ford

6.7 Company Profile of Mercedes Benz An Du

6.8 Company Profile of Hyundai Dong Do

6.9 Company Profile of Toyota An Suong

6.10 Company Profile of Hien Toyota

7. Company Profiles of Online Websites (Classifieds)

7.1 Cross Comparison of Online Classifieds Platform in terms of Average Monthly Listings, Business Model, Services Offered, Financing, Customer Service, Vehicle Inspection

7.2 Company Profile of Bonbanh.com

7.3 Company Profile of Oto.com

7.4 Company Profile of Carmudi Vietnam

7.5 Company Profile of Chotot

7.6 Company Profile of Choxe

8. Analysis of the Supporting Industries in the Vietnam Automotive Space

8.1 Overview of Vietnam Automobile Financing

8.2 Market Size of Vietnam Auto-Finance and Auto-Insurance Market, 2015-2025E

8.3 Pain Points for Customers and Credit Institutions

8.4 Issues and Challenges for Financing Institutions

8.5 Company Profile of Major Banks for Automobile Purchase Financing (VIP Bank, TP Bank, VP 
Bank, Standard Chartered, Vietin Bank, Techcom Bank, Woori Bank, and Shinhan Bank)

8.6 Company Profile of Major Non-Banking and Captive Financing Companies in Vietnam for 
Automobile Purchase Financing (Mirae Asset, Toyota Financing Services and BMW Financial 
Services)

8.7 Overview of Vietnam Automotive Aftersales Services and Parts Industry

8.8 Overview of Spare Parts Aftermarket Industry in Vietnam

9. Future Outlook and Projections of Vietnam Used Car Industry on the basis of GTV and Sales Volume, 2021-2026E

9.1 New Vehicle Sales in Vietnam, 2021-2026E

9.2 Vietnam Used Car Market Size on the basis of GTV and Sales Volume, 2021-2026E

9.3 Vietnam Used Car Market Size on the basis of C2B and C2C Split, 2021-2026E

9.4 Vietnam Used Car Market Size on the basis o B2C Split, 2021-2026E

10. Vietnam Used Car Market Future Segmentation, 2021-2026E

10.1 By Type of Vehicle (Sedans, SUVs, MPVs Hatchback and Others)

10.2 By Vehicle Age (0-3 years, 3-5 years, 5-7 years and More than 7 years)

10.3 By Region (Northern, Central and Southern)

10.4 By Price (VND 0-200 Mn, VND 200-400 Mn, VND 400-600 Mn, More than VND 800 Mn)

10.5 By Mileage (0-30,000 Km, 30,000-60,000 Km, 60,000-80,000 Km and More than 80,000 Km)

10.6 By Brand (Toyota, Ford, Kia, Honda, Hyundai and Others)

10.7 By Supply Type (Domestic vs Imported)

10.8 By Mode of Sales (Online vs Offline)

10.9 By Channel Purchase (Organized Purchase vs Non-Organized Purchase)

10.10 By Financed vs Non-Financed

10.11 By Financing Type (Organized Financing vs Unorganized Financing)

11. Analyst Recommendations

12. Research Methodology

12.1 Market Definitions and Assumptions

12.2 Abbreviations

12.3 Market Sizing Approach

12.4 Consolidated Research Approach

12.5 Understanding Market Potential through In-Depth Industry Interviews

12.6 Correlation Matrix

12.7 Limitations and Future Conclusion

Disclaimer

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