Vietnam Used Car Market Size (2024 - 2029)

Vietnam Used Car Market Analysis

The Vietnam Used Car Market size is estimated at USD 10.92 billion in 2024, and is expected to reach USD 24.14 billion by 2029, growing at a CAGR of 17.20% during the forecast period (2024-2029).

The used car market in Vietnam has been experiencing significant growth, driven by the rising demand for affordable transportation options, the increasing availability of imported used cars, and the expanding middle-income population in Vietnam.

Various factors influence the decision to purchase a used car, including customer preference for personal mobility and hesitance when making big-ticket purchases like cars.

The influx of imported used vehicles, particularly from neighboring countries like India, Japan, and South Korea, has also been a key factor pushing the Vietnamese market for used cars. Additionally, the government's decision to reduce import taxes on used cars has made them more accessible and affordable for Vietnamese consumers. The Vietnamese government has implemented certain strategies to lower new car prices in the domestic market. These strategies include providing a SCT (Special Consumption Tax) rebate on certain automobiles based on engine displacement values.

The growing middle-income population in Vietnam has also contributed to the growth of the used car market. According to a report by the World Bank published in April 2023, the middle-income population in Vietnam is expected to reach 25 million people by 2026, up from 13 million in 2020. This demographic shift has increased the demand for personal vehicles, with many middle-income consumers opting for affordable used cars as their first vehicle purchase.

Overall, the market is expected to grow due to increased digitalization and the introduction of new automotive start-ups with cutting-edge business models.

Vietnam Used Car Industry Segmentation

A used car, also known as a pre-owned or secondhand car, is a vehicle that has had one or more previous retail owners. These cars can be purchased from various sources, including franchise and independent car dealerships, rental car companies, buy-here-pay-here dealerships, leasing offices, auctions, and private party sales.

The Vietnamese used car market is segmented by vehicle type, fuel type, booking type, and vehicle age. By vehicle type, the market is segmented into hatchback, sedan, and sports utility vehicle (SUV) and multi-purpose vehicle (MPV)). By fuel type, the market is segmented into ICE and electric. By booking type, the market is segmented into online and offline. By vehicle age, the market is segmented into up to 5 years and above 5 years. For each segment, market sizing and forecast have been done based on value (USD).