Affordable sedans racing promotions starting early this year

The Toyota Vios had a relatively challenging year in the Vietnamese market. Photo: Minh Quân.

After a relatively lackluster year in 2023, the B-segment sedan segment is heading into the new year with most of the key players receiving updates in the Vietnamese market but sales figures have not shown stability yet.

Poor sales in the previous year were partly why many affordable sedan models offered attractive incentive and promotion programs right in the first month of the year.

Affordable sedans trying to regain their position

Last year, the sales of the Toyota Vios were quite abnormal. The first half of 2023 was a nightmare for the former sales champion as the sales volume of this sedan model was only around 904 units per month, while its rival, the Hyundai Accent, has been the best-selling model in the market for 2 consecutive months at the beginning of the year.

Therefore, in January, Toyota Vios is being promoted by dealers with a 50% reduction of registration fees. This is similar to the policy applied for 6 months in the second half of last year for Vios and other locally-assembled cars. Besides this incentive, Toyota dealers also offer an additional VND 10-15 million to customers purchasing Vios in January.

“The amount of customers buying cars at the beginning of the year seems more positive than the same period last year,” said a salesperson at a Toyota dealership in Ho Chi Minh City.

In the past year, Toyota Vios started with a sales volume of only 275 units. Hyundai Accent sold 1,024 units in the first month of last year, while Honda City’s sales figure was 759 units.

Toyota Vios is being promoted right in the first month of the year. Photo: Minh Quân.

Also in the first month of 2024, Hyundai Accent is being offered a 50% reduction of registration fees. In addition, customers buying this B-segment sedan will also receive a package of accessories or body insurance, depending on the dealer’s policy and the selected version.

At the end of 2023, Hyundai Accent surpassed Toyota Vios to become the best-selling affordable sedan in Vietnam. The sales figure of this Korean model after 12 months of the past year was 17,452 units, equivalent to an average sales volume of over 1,454 units per month.

As for Honda City, the B-segment sedan of the Japanese brand is being offered a maximum 100% reduction of registration fees in January. The G and L versions of Honda City are the models that receive the maximum benefits, while the RS version will be applied with a 50% reduction of registration fees.

Among the affordable sedan models with sales volume statistics in the Vietnamese market, Honda City has the highest listed price, ranging from VND 559-609 million, depending on the version.

However, after being upgraded last year, all versions of Honda City have been equipped with the Honda Sensing system, the unique advanced driving assistance technology in the small sedan segment.

Honda City is the highest-priced B-segment sedan. Photo: Bối Hạ.

Last year, Honda City had a long time as the second best-selling affordable sedan in Vietnam, after Hyundai Accent. However, a downturn in sales and the impressive performance of Toyota Vios have caused Honda City to fall behind. At the end of 2023, Honda City reached a sales figure of 9,894 units, significantly lower than the achievements of 13,521 units for Toyota Vios and 17,452 units for Hyundai Accent.

Slow-selling cars also have incentives

After appearing in the bottom list of the slowest-selling cars in the market for several consecutive months, the Suzuki Ciaz has become the car with the lowest sales figure in Vietnam, if excluding 3 normal Ertiga and 1 Jimny sold last year.

However, Suzuki Ciaz still enjoys a 50% reduction of registration fees and 0% interest rate car loan policy within 6 months provided by the Japanese automaker. According to Vietnam Suzuki, the program applied for Suzuki Ciaz is equivalent to incentives worth VND 45 million and can be converted into cash.

Suzuki Ciaz achieved a sales figure of 37 units in 2023. Photo: Vĩnh Phúc.

Mitsubishi Attrage is also a notable name in the affordable sedan segment in Vietnam. As it is not assembled locally, Mitsubishi Attrage no longer enjoys the policy of a reduction of registration fees applied in the second half of 2023.

However, this Thai-imported sedan still receives equivalent incentives from dealers, similar to other competitors in the same segment. In January, Mitsubishi Attrage continues to have a 50% reduction of registration fees and a shark-fin antenna incentive for the versions with a CVT automatic transmission. For manual transmission versions, customers who purchase Attrage in January will receive a VND 2.5 million rearview camera as a gift.

Another Thai-imported sedan in the small sedan segment in the Vietnamese market is the Mazda2. During the transition period between the old and new years, the listed prices of Mazda2 variants have continuously changed.

Specifically, the listed prices of Mazda2 sedan versions were reduced by VND 5 million at the end of last year but increased by up to VND 10 million in the first week of the new year. Therefore, the starting price of this model is now at VND 420 million and increases to VND 524 million for the 1.5L Premium version.

Meanwhile, the prices of the two variants of Mazda2 Sport have continuously increased by two times, ranging from VND 517 million to VND 562 million.

Is there still a three-horse race?

The competition in the affordable sedan segment in Vietnam is often known as the exclusive playground for 3 names: Toyota Vios, Hyundai Accent, and Honda City. In which, the small sedan model from Honda has had a relatively abnormal sales performance and has sometimes been left out of the sales race with the other 2 rivals.

Meanwhile, the Toyota Vios and Hyundai Accent have shown fairly good sales figures compared to the market average in Vietnam. Both of these small sedans have appeared in the top 5 best-selling cars in 2023, despite a significant decrease in sales compared to the same period last year.

Hyundai Accent is currently the best-selling sedan in the Vietnamese market. Photo: TC Motor.

In Vietnam, the affordable sedan segment seems to be the quietest segment, as there have been no departures in the past 2 years, and no newcomers are preparing to enter the market. The sales race, if any, only takes place in the upper group with the aforementioned names.

It is likely that Hyundai Accent and Toyota Vios will continue the race for their sales figures, aiming not only to top the segment but also to become the best-selling cars in the market. Honda City may join this race at times, but the purchasing power of this Japanese sedan is unlikely to match that of the other 2 rivals.

Meanwhile, in the lower group, the Suzuki Ciaz is showing an increasingly weaker position in the Vietnamese market. Let’s wait and see what decision Vietnam Suzuki will make for this B-segment sedan as the sales figure of the car group seems to be not the top priority of the Japanese automaker.