SUVs, Crossovers dominate high-end segment

By Phuong Linh   January 30, 2019 | 12:14 am PT
SUVs, Crossovers dominate high-end segment
Vehicles are seen along a street in Hanoi. Photo by Reuters/Kham
Among consumers willing to spend at least VND1 billion ($43,135), the preference is for SUVs and Crossovers over sedans.

In recent years, high ground clearance vehicles have gradually become the number one choice for the majority of Vietnamese consumers, having grown steadily in number sales and variety over the years. 

In contrast, the D-class sedan segment has seen low demand and limited variety. 

Sales of SUV and Crossovers (CUV) vehicles around the price of VND1 billion ($43,135) have risen steadily over the years. While 2014 saw only around 13,000 units sold, sales had more than doubled by 2018 at 24,264 units. 2018 only saw a slight increase over 2017, but this was because a decree on import conditions prevented many firms from importing these vehicles for most of the year.

According to the Vietnam Automobile Manufacturers’ Association (VAMA), consumers have a choice of 10 SUV/CUVs in the VND1 billion price range. Car dealers have noted that almost all brands in Vietnam have at least one product in the SUV/CUV segment.

Average sales per model was around 3,100 vehicles a year. 

Th SUV/CUV segment is predicted to boom in 2019, as firms get used to the new regulation and find stability in importing new vehicles.  

Meanwhile, from 2014 up to now, the D-size sedan segment has featured the same models, namely, Toyota Camry, Mazda6, Honda Accord, Nissan Teana and the Kia Optima, which was introduced last year. 

In the last 5 years, sales of D-size sedans reached a peak in 2016 at 8,148 units. The introduction of the Kia Optima in 2018 raised the number of models in the segment to 6, but annual sales fell to only 7,612 units. 

In 2018, Toyota Camry dominated the D-segment at over half of the 4,503 units sold, while the remaining models saw little growth. Total sales have nevertheless been fairly stable, hovering around 6,000 or 7,000 over the years.  

Vietnam's total car sales increased 5.8 percent to 288,683 units in 2018 from a year ago, according to the Vietnam Automobile Manufacturers' Association (VAMA).

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