New entries to intensify competition again in cheapest auto segment

By Thanh Nhan   April 26, 2023 | 06:02 am PT
New entries to intensify competition again in cheapest auto segment
VinFast’s VF 5 at its launch in Hanoi on April 21, 2023. Photo by VnExpress/Luong Dung
The A-segment will see new entrants this year, both petrol and electric cars, making competition hotter than ever despite the exit of several models.

The city car segment shrank considerably last year as the Toyota Wigo, Honda Brio and VinFast Fadil exited due to not having Euro 5 emission standard engines or as part of their manufacturer’s strategy.

But competition in it is set to intensify again with the new entries.

VinFast’s new electric car VF 5 Plus already went on sale from April 21 replacing the Fadil. With its simple design, it is targeted at first-time buyers for personal and business use.

It starts at VND458 million (US$19,500) without the battery and VND538 million with it.

The Wuling Hongguang Mini EV will launch this year in Vietnam. With an expected price of less than VND300 million, its main customers will be budget-conscious buyers and people who drive mainly in cities.

Toyota’s new generation Wigo is expected to go on sale on May 24. It returns with a new design and emphasis on safety with new features like blind spot warning and rear cross-traffic alert.

It is clear manufacturers do not want to forsake this segment, in which high sales make up for low profit margins.

Only B-size sedans sell more than A-size cars in Vietnam.

Between 2018 and 2021 sales of A-size cars consistently topped 40,000. But in 2022, after many models were pulled out and only the Kia Morning and Hyundai i10 remained, they fell to 17,000.

But in 2023 customers are set to have more choices again.

go to top