December 3, 2023

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Vietnam Used Car Market Outlook to 2026: Driven by Growing Disposable Income and Shifting Consumer Preference from Two-Wheelers to Four-Wheelers –

DUBLIN–(BUSINESS WIRE)–The “Vietnam Used Car Market Outlook to 2026 (Second Edition): Driven by Growing Disposable Income and Shifting Consumer Preference from Two-Wheelers to Four-Wheelers” report has been added to’s offering.

Vietnam Used Car Market Outlook to 2026 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 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, impact of COVID-19, business model of Oto, Carmudi and Bonbanh and risk factors governing the future outlook of industry.

Insights on competitive landscape of 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, 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 overview of the supporting industries such as auto-finance, aftersales and spare parts industry on the basis of market size (total credit loans disbursed and total outstanding loans).

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.

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 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

By Mode of Sales

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

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

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

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