Market Trends of Vietnam Used Car Industry
Online Booking is Witnessing Major Growth
The online booking segment is expected to play a crucial role in the development of the Vietnamese used car market during the forecast period. In recent years, with the growing advancements in technology, customers have preferred purchasing used car vehicles through online sales.
The increasing number of internet users across the country will likely enhance the use of online booking platforms in the coming few years.
- In January 2023, Vietnam had 77.93 million internet users, with an internet usage rate of 79.1% of the total population.
In addition, there has been a rise in the number of new players entering the used car market, which may continue in the coming years. These companies compete with existing players by providing customized services, new vehicles, and a low-pricing strategy. To stay ahead in the market, these companies focus on providing value-added services to prospective clients, reducing service costs, and introducing premium, well-maintained vehicle models and features into their fleets to capture a significant market share.
With the growing trend of buying used cars online through apps, app developers are improving mobile applications by adding advanced features that offer more vehicle options and comparable prices on a single platform. For example, in Vietnam, multiple online platforms, such as Bonbanh, facilitate the purchase and sale of used cars. These apps showcase various used cars that are available for sale, providing a wide range of choices.
Hence, owing to such developments, the online booking segment is expected to be the fastest-growing segment in the market during the forecast period.
Sedans Hold a Significant Market Share
Sedans continue to dominate the used car market in Vietnam. The enduring popularity of sedans in the secondhand market can be attributed to affordability, practicality, and consumer preference for traditional body styles.
- A report by the Vietnam Automobile Manufacturers' Association (VAMA) released in January 2023 highlighted that seven of the top 10 best-selling used car models in 2022 were sedans.
Many young customers prefer pre-owned sedans over entry-level cars, which has become a significant driving force in the used car market. Additionally, middle-income consumers' purchasing power has increased over the past two decades, allowing them to own sedans.
The preference for sedans in Vietnam's used car market is also influenced by cultural factors. An article by Tuoi Tre News published in February 2023 reported that sedans are often perceived as a symbol of status and success in Vietnamese society. Owning a used sedan, even an entry-level model, can be a source of pride for many consumers, further fueling the demand for this body style in the secondhand market.
Additionally, unlike sedans with lower ownership costs, owning an SUV or a truck can be quite expensive due to maintenance and fuel expenses. Finding a reliable and economical car can be challenging, but a wide range of used sedans are affordable and dependable.
Hence, with such developments across the country, the demand for sedans is likely to grow in the Vietnamese market during the forecast period.
