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Vietnam Used Car Market Outlook to 2025

By Type of Cars (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 Region (North, South and Central), By Cities (Hanoi, HCMC, Hai Phong, Da Nang and Others) and By Brand (Toyota, Mazda, Kia, Honda, Ford, Chevrolet, Mitsubishi and Others)

Region:Asia

Author(s):Harsh Saxena, Nishika Chowcharia

Product Code:KR903

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Published On

October 2019

Total pages

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About the Report

Click Here for Updated Report on: Vietnam Used Car Market Outlook to 2026

The report titled "Vietnam Used Car Market Outlook to 2025 - By Type of Cars (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 Region (North, South and Central), 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 of the industry, Market size in terms of Gross Transaction Value, overall market size in terms of Volume, business models, trends and developments, issues and challenges, regulations in Vietnam, snapshot on Vietnam used car auto finance, snapshot on Vietnam online used car market, value chain analysis, 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 and showcased strong growth owing to the increasing disposable income, faster vehicle replacement rate, growing middle-class population, increasing average ticket size and rising initiatives by the Vietnamese government in terms of import tariffs, taxes and regulations. In Vietnam, people prefer to buy a used motor vehicle as new ones are very expensive and for middle or lower-income group people, used cars have become more popular choices.

The Vietnamese government has also adopted certain strategies to reduce new car prices in the domestic market such as providing an SCT (Special Consumption Tax) rebate on certain automobiles depending on their engine displacement values which created new competitiveness in the used car market due to which Used to New vehicle ratio has been declining over the years and impacting the sales volume of used cars in Vietnam.

Vietnam Used Car Market Segmentation

By Type of Car: Sedans accounted highest market share in the year 2018. Sedans remained the most popular car type in the country as they are perceived as conferring a higher social status. SUV’s accounted the second highest market share followed by SUV’s, Hatchbacks and Cross Type Vehicles (CTV’s).

By Vehicle Age: Used cars under the age bracket of 2-4 years accounted for the highest market share in 2018 due to the average replacement rate 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 horsepower) and have high resale value.

By Region: The northern regions accounted for the highest share 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 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 the year 2018. Hai Phong and Da Nang along with other cities contributed the remaining share of the 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 the 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 resale 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 car sales volume in 2018.

Competitive Landscape

Used car market in Vietnam is highly fragmented with the presence of more than 1500 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 have a highly concentrated space with the presence of four to five major companies such as Bonbanh, Oto, Carmudi, Choxe, Chotot and others capturing almost 80.0% share among the online auto-classified companies present in Vietnam's used car market.

Vietnam Used Car Market Future Outlook

The Vietnam Used Car market in terms of sales volume is expected to grow in the future at a double-digit CAGR over the forecast period (2018-2025E). 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, the growing middle-class population, increasing disposable income, increasing car replacement rate and growing customer confidence. Gross Transaction Volume will significantly increase at a positive CAGR during the period 2018-2025E due to the increasing average ticket size of a used car over the years.

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

Products

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

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

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

1. Executive Summary

Competition Scenario

2. Research Methodology

2.1. Market Definitions

2.2. Abbreviations

2.3. Market Size and Modeling

2.4Market Sizing Approach

2.5Variables Dependent and Independent

2.6Multifactor based Sensitivity Model

2.7Limitations

2.8Final Conclusion

3. Vietnam Used Car Market Overview and Genesis (Overview and Genesis, Business Cycle Graph)

3.1. Overview and Genesis (Overview, Popular Brands, Market Stage, Ratio of New Vehicle sold to
Used Vehicle, Market Size, Comparison with other markets and Major Entities in Value Chain)

3.2. Business Cycle (Emerging, Growing and Declining phase)

4. Vietnam Used Car Market Ecosystem (Major Online Companies, Dealers and Banks)

5. Vietnam Used Car Market Value Chain Analysis (Value Chain Process and Role of Entities)

5.1. Role of Entities in Value Chain

6. Business Models Prevalent in Vietnam Used Car Market

6.1. Offline Business Models

6.2. Online Business Models

7. Vietnam Used Car Market Size, 2013-2018

7.1. By Volume and Value, 2013 – 2018

8. Vietnam Used Car Market Segmentation

8.1. By Type of Cars (Sedans, SUV’s, MPVs, Hatchbacks, CTVs and Others), 2018

8.2. By Vehicle Age (0-2 Years, 2-4 Years, 4-6 Years and More than 6 Years), 2013 and 2018

8.3. By Region (North, South and Central), 2018

8.4. By Cities (Hanoi, HCMC, Hai Phong, Da Nang and Others), 2018

8.5. 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 and More Than VND 800 Million), 2018

8.6. By Brand (Toyota, Ford, Mazda, KIA, Honda, Chevrolet, Mitsubishi and Others), 2013 and
2018

9. Snapshot of Vietnam Used Car Finance

10. Snapshot of Vietnam Online Used Car Market

11. Buying Decision Parameters For Used Cars in Vietnam

12. Trends and Developments in Vietnam Used Car Market

Rise of Online Classifieds

EVFTA Agreement- Taxes on imported cars will Reduce to Zero Percent

Ban on Motorbikes

Growing Middle Class

Brand Coscious Buyers in Vietnam

13. Issues and Challenges in Vietnam Used Car Market

13.1Underdeveloped Infrastructure

13.2Decline in Used To New Car Ratio in Vietnam

13.3Largely Unorganized Market Segment

13.4Innumerable Taxes and Fees

13.5Need for Supporting Industries

13.6Asymmetric Information

14. Government Regulation in Vietnam Used Car Market

14.1Registration

14.2Buying a Used Car

14.3Selling a Car

14.5Decree No. 125/2017/ND-CP (Import tax on used cars)

14.6Vehicle Roadworthiness Tests in Vietnam

15. SWOT Analysis of Vietnam Used Car Market

16. Comparative Landscape of Vietnam Used Car Market

16.1. Market Share of Online Auto-Classified Companies on the Basis of Number of Listings, as
of 30th September 2019

16.2. Strength and Weakness of Major Online Auto- Classified Players in Vietnam Used Car Market

16.3. Heat Map and Cross Comparison of Online Auto-Classified Companies, captive Dealers and
Multi Brand Dealer

16.3.1. Online Auto-Classifieds

16.3.2. Multi-Brand Dealers
16.3.3. Captive Dealers

16.4. Company Profile of Major Auto-Classifieds in Vietnam Used Car Market (Overview, Business
Segments, Number of Car Dealers and Business Models)

16.4.1. Bonbanh.com

Working Process of Bonbanh.com

16.4.2. Oto Vietnam

Working Process of Oto Vietnam

16.4.3. Carmudi.vn

Working Process of Carmudi.vn

16.4.4. Choxe.net

16.4.5. Chotot

16.5. Company Profile of Major Multi-Brand Dealers of Used Cars in Vietnam (Overview, Services,
Locations and Number of Cars Listed)

16.5.1. Anycar.vn

16.5.2. Viet Han Used Car

16.5.3. Hien Toyota

16.5.4. Hao Binh Auto

16.6. Company Profile of Major Captive Dealers of Used Cars in Vietnam (Overview, Services,
Locations and Number of Cars Listed)

16.6.1. Thanh Xuan Ford

16.6.2. Mercedes-Benz An Du

16.6.3. Hyundai Dong Do

16.6.4. Toyota An Suong

17. Vietnam Used Car Market Future Outlook and Projections, 2018-2025E

18. Vietnam Used Car Market Segmentation Future Outlook and Projections

18.1. By Type of Used Car (Sedans, SUV’s, MPVs, Hatchbacks, CTVs and Others), 2025E

18.2. By Vehicle Age (0-2 Years, 2-4 Years, 4-6 Years and More than 6 Years), 2018 - 2025E

18.3. By Region (North, South and Central), 2025E

18.4. By Cities (Hanoi, HCMC, Hai Phong, Da Nang and Others), 2025E

18.5. By Brand (Toyota, Mazda, Ford, KIA, Honda, Chevrolet, Mitsubishi and Others), 2025E

19. Analyst Recommendations for Vietnam Used Car Market

20. Success Case Studies (Cars24, Car Trade and Mahindra First Choice Wheels Limited)

20.1. Cars24

Business Model Of Cars24

Revenue Streams of Cars24

20.2. CarTrade

20.3. Mahindra First Choice Wheels Limited (MFCWL)

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