Vietnam Used Car Market will be driven by Improvement in Car Replacement Rate and Increasing presence of Online Platforms: Ken Research

“Introduction of government policies (Reduction of SCT, ATIGA and VKFTA) coupled with rising number of inspection checks performed before selling a used car have driven the Vietnam Used Car Market”.

The report titled “Vietnam Used Car Market Outlook to 2025 - By Type (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 Cities (Hanoi, HCMC, Hai Phong, Da Nang and Others) and By Brand (Toyota, Mazda, Kia, Honda, Ford, Chevrolet, Mitsubishi and Others)” by Ken Research suggested that the Vietnam Used Car Market has been increasing due to increasing middle class population coupled with faster car replacement period and introduction of government policies such as EVFTA and Ban on Motorbikes. The market is expected to register a positive CAGR of 11.2% in terms of sales volume during the forecast period 2018-2025E.

Reduction of Special Consumption Tax (SCT): The Vietnamese government in the year 2018 reduced SCT on vehicles with an engine size of 2.0 litres or less by 5%. Moreover, according to the ASEAN Trade in Goods Agreement, the government has also reduced the import tariffs from 50% to 35% in 2015 which further reduced to 20% in 2016 and 10% in 2017. In the year 2018, it was bought down to 0% which boosted the sale of used cars in the country.

Increasing Replacement Rate: The replacement rate of used vehicle in Vietnam is growing over the years largely due to the high resale value a seller gets on replacing a vehicle between 2-4 years of vehicle age. The dealership outlets keep replacing the cars with the fast moving models so as to ensure higher margins on the sale of such cars.

Strong Presence of Online Platforms: The use of social media platforms such as Facebook Marketplace along with online auto classifieds portals in Vietnam such as Oto and Carmudi have provided high user convenience to the buyers who are looking forward to purchase a used car as it provides the detailed description of all the listed used cars. The online medium drastically reduced the customer acquisition cost and increased the transparency which marked a level of trust and confidence thus increasing the sale of used cars in the country.

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

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 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

For more information, refer to below link:-
Vietnam Used Car Market

Related Reports:-
China Used Vehicle Market Outlook to 2022 - by Type of Vehicle (Sedans, SUVs, Micro Vans, MPVs, Trucks, Buses, Cross Type Vehicles, Trailers, Motor Cycles and Low Speed Trucks), by Vehicle Age, by Distribution Channels, by Region, by Price of Vehicle

Indonesia Used Car Market Outlook to 2023 - Rising Popularity of Online Platforms and Reduction in Average Ownership Period to Drive Used Car Sales

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249