Honda BR-V: Enhancing the Heat in the MPV Segment

Despite being present in Vietnam for quite some time, the heat of the MPV segment is still quite strong. This is evident when looking at the sales figures as well as the range of products from various brands.

At the end of 2022, VAMA recorded a total of 55,288 MPVs sold in the market. This number is an increase of 33,237 compared to the whole year of 2021, equivalent to a growth rate of over 150%.

Putting pressure on the A-segment

In the past 3 years, it is easy to see the shift to high ground clearance or multi-purpose vehicles in the Vietnamese automobile market. Cheap cars are no longer a priority for consumers, as seen in the declining sales of A-segment cars, along with the disappearance of models like VinFast Fadil and Honda Brio.

Sales of the A-segment and MPV segment
Brand	2020	2021	2022
A-segment		47,280	45,126	27,833
MPV segment		28,560	22,051	55,288

On the other hand, the MPV segment is becoming more dynamic with the introduction of new products to customers. In 2022 alone, the Vietnamese automobile market welcomed 4 new MPV models, including the Toyota Veloz Cross/Avanza Premio, Hyundai Stargazer, and Suzuki Ertiga Hybrid.

The development of the MPV segment is understandable as this type of vehicle meets the needs of the majority of customers. With its versatile design, capable of carrying 6-7 people and a more accessible price than SUVs, MPVs quickly become attractive.

Honda Vietnam will also enter this segment with the BR-V model, which is expected to be launched in early July. This is considered a notable competitor as it is equipped with the Honda SENSING safety package and imported from Indonesia.

Suitable for both families and services

Most Vietnamese people see cars as a means of transportation for the whole family rather than just a personal vehicle like in some other countries. Therefore, small urban cars are not truly compatible with the Vietnamese car culture.

Although cars in Vietnam are more popular than 20 years ago, four-wheel vehicles are still not the primary mode of transportation like motorcycles. Regular families usually have only 1-2 cars that family members will share, so they need a spacious car to accommodate the trips of 2 or 3 generations.

In addition to being suitable for large families, multi-purpose vehicles are also a choice for business customers due to their ability to meet customer needs. Most rental customers prioritize spacious cars that provide comfort, especially on long journeys.

In terms of pricing, the mainstream MPV range in Vietnam is relatively affordable compared to 7-seater SUVs. This key factor helps models like the Mitsubishi Xpander and Suzuki XL7 be more commonly seen in service fleets compared to 7-seater SUVs like the Toyota Fortuner or Ford Everest.

A wide range of choices

Kia, Hyundai, Mitsubishi, and Toyota all have at least one MPV model in their product range in the Vietnamese market. Currently, domestic consumers have nearly 10 choices of MPVs, mostly from Japanese and Korean brands.

The Mitsubishi Xpander still maintains its position as the best-selling MPV in the market, leading the segment’s sales from the beginning of the year until now. The attractiveness of the Xpander comes from various factors such as an affordable price, balancing practicality and fashion.

Xpander’s direct competitor, the Toyota Veloz Cross, was expected to make an impact against the fellow model, but in recent months, the sales of the Veloz Cross have been surpassed by the Xpander. In April, Toyota sold 657 Veloz Cross units, significantly lower than the 1,084 units of Xpander.

The Hyundai Stargazer, despite being launched less than a year ago, has attracted attention thanks to its low price ranging from 575-685 million VND. This model is currently in a clearance period and receives many discounts of about 100 million VND. It is likely that the Stargazer’s sales in June will increase significantly due to promotional policies.

Suzuki XL7, Toyota Avanza Premio… are the remaining names in the MPV segment in the Vietnamese market. Next month, the introduction of the Honda BR-V is expected to make the competition in the multi-purpose vehicle segment more fierce.