Chinese cars depreciate faster than South Korean, Japanese models

Three models of China’s state-owned company SAIC Motor saw their value declining by 24%–33% between 2022 and 2024, according to a recent survey by used car listing platform Oto.com.vn.

Those of South Korean firms Kia and Hyundai and Japanese brand Toyota depreciated by less than 20% in the same period.

MG HS, an SUV manufactured by SAIC’s MG Motor, plunged 33% in value while its competitor Hyundai Tucson dropped by 17%.

The sedan MG5 decreased by 28% while rivals Kia K3 fell 19% and Toyota declined by 10-12%.

Anh Dung, manager of a used-car distributor, said that Chinese brands remain weak in reputation compared to those from Japan and South Korea.

"Buyers prefer safe options when it comes to used car to ensure stability, and they often look to Japanese and South Korean brands."

The strong discounts that brands offer for their vehicles also affect their resale value, with steeper price slashes often resulting in stronger depreciation, Dung added.

Chinese brands, however, are gradually gaining the trust of Vietnamese consumers, as their models have proven to be generally safe and steady after around five years of usage.

Last year, seven Chinese brands entered the Vietnam market, a record high.

MG Motor, which returned to Vietnam in 2020 after making its first appearance in 2012, is now the biggest Chinese automaker in sales.

The only exception in depreciation trends was Beijing X7, made by Chinese state-owned manufacturer BAIC, which fell only 12%, compared to rival Tucson’s 17% drop.

The shortage of supply for the Chinese model, along with its advanced features, make it a valuable asset even on the secondary market, industry insiders say.