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

The MPV segment in Vietnam continues to thrive despite its long presence in the market. Sales figures and the variety of products from different brands speak for themselves.

By the end of 2022, VAMA reported a total of 55,288 MPVs sold, a significant increase of 33,237 units compared to the previous year – an impressive growth rate of over 150%.

Challenging the A-segment dominance

In the past three years, the Vietnamese automobile market has witnessed a shift towards high ground clearance and multi-purpose vehicles. The demand for cheap cars no longer takes precedence, as seen in the decline of A-segment car sales and 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 gaining traction with the introduction of new models. In 2022 alone, the Vietnamese automobile market welcomed four new MPV models, including the Toyota Veloz Cross/Avanza Premio, Hyundai Stargazer, and Suzuki Ertiga Hybrid.

It’s understandable that the MPV segment is thriving, as these vehicles perfectly meet the majority of customers’ needs. With their versatile design, capable of accommodating 6-7 people, and a more affordable price compared to SUVs, MPVs have quickly become popular choices.

Honda Vietnam is also entering the MPV market with the BR-V model, set to launch in early July. The BR-V stands out as a strong competitor, equipped with the Honda SENSING safety package and imported from Indonesia.

Suited for families and commercial purposes

In Vietnam, cars are predominantly viewed as family vehicles rather than personal transportation, in contrast to some other countries. As a result, compact urban cars are not the perfect fit for Vietnamese car culture.

Although car ownership has grown compared to 20 years ago, motorcycles still dominate as the primary mode of transportation. Regular families usually share 1-2 cars among family members, so they need spacious vehicles to accommodate multi-generational trips.

In addition to being suitable for large families, multi-purpose vehicles are also a popular choice for businesses due to their ability to meet customer needs. Rental customers, in particular, prioritize spacious cars that provide comfort, especially during long journeys.

In terms of pricing, mainstream MPVs in Vietnam are relatively affordable compared to 7-seater SUVs. This affordability factor has led models like the Mitsubishi Xpander and Suzuki XL7 to be commonly seen in service fleets, while 7-seater SUVs like the Toyota Fortuner or Ford Everest take a back seat.

A wide range of options

Kia, Hyundai, Mitsubishi, and Toyota all offer at least one MPV model in the Vietnamese market. Currently, domestic consumers have nearly 10 MPV options, mostly from Japanese and Korean brands.

The Mitsubishi Xpander remains the best-selling MPV in the market, consistently leading the segment in sales. The Xpander’s appeal stems from various factors, such as its affordable price and the perfect balance between practicality and style.

The Toyota Veloz Cross, a direct competitor to the Xpander, was expected to make an impact but has been outperformed by its rival in recent months. In April, Toyota sold 657 Veloz Cross units, significantly fewer than the 1,084 Xpander units.

Despite being launched less than a year ago, the Hyundai Stargazer has gained attention thanks to its affordable price ranging from 575-685 million VND. Currently in a clearance period, the Stargazer offers significant discounts of about 100 million VND, which is likely to significantly boost sales in June.

The Vietnamese MPV market also features the Suzuki XL7, Toyota Avanza Premio, and more. Next month, the arrival of the Honda BR-V is expected to heat up the competition in the segment even further.