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Toyota Camry. Photo: Boi Ha. |
According to the Vietnam Automobile Manufacturers Association (VAMA) and TC Group, the Vietnamese market started 2024 on a subdued note, with total sales of all brands, including passenger cars, reaching 19,243 units, down 54% compared to the same period last year.
Toyota Camry and the D-segment sedan segment are also struggling to “overcome difficulties” during this low point.
Stagnant sales, deep discounts attract customers
In previous years, sales of the entire D-segment sedan segment, although not impressive, remained at an average of around 5,500 units/year. In 2022, the segment even recorded a strong increase, bringing the number of vehicles sold in the year to 7,707 units, equivalent to approximately 650 units/month.
However, moving into 2023, sales of the entire low-end vehicle segment have fallen to an average of around 385 units/month. In the last quarter of 2023, the entire segment sold less than 350 units/month. Among them, the sales of the top-selling Toyota Camry also fell below 300 units/month.
In January of this year, sales of the entire large sedan segment reached 401 units, equivalent to a decrease of approximately 11.8% compared to December 2023. However, compared to the same period in 2023, sales of this segment increased by approximately 2%.
| D-segment sedan sales decline | ||||
| Average monthly sales of the D-segment sedan segment from 2021-2023 | ||||
| Year | 2021 | 2022 | 2023 | |
| units/month | 462 | 642 | 385 |
Throughout 2023, a series of promotional programs were implemented for the large sedan segment in order to stimulate consumer demand. However, due to the market volatility, sales of the entire segment still fell short of expectations.
At the beginning of this year, automakers have continued to launch a series of programs in preparation for the new year’s sales race. Among them, Honda Vietnam’s large low-end vehicle model continues to receive a 50% discount on registration fees and a direct cash reduction with a total value of up to 200 million VND for customers who purchase and pay in February.
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Honda Accord. Photo: Thuong Thuong. |
The leading model in the D-segment sedan segment, the Toyota Camry, is being offered discounts of up to 70 million VND at many dealerships nationwide. Specifically, when contacting a Toyota dealership in Ho Chi Minh City, a sales consultant confirmed that customers who purchase any version of the Toyota Camry will receive a cash discount.
The 2.0 Q and 2.5 Q versions are reduced by 30 million, bringing the listed prices of the 2 models down to 1,190 and 1,375 million VND, respectively. The Toyota Camry 2.5 HV version is reduced by 43 million, while the 2.0 G version is reduced by up to 70 million VND.
Kia K5 is also being offered discounts of tens of millions to hundreds of millions of VND by many dealers in order to clear out unsold inventory. In particular, several remaining K5 VIN 2022 models are being discounted by around 100 million VND by many dealers. However, there is a limited number of unsold vehicles, so customers who want to buy a car with their preferred color and version should check with multiple dealerships.
Only Toyota Camry sells more than 100 units/month, Kia K5 sales drop by 70%
For many months of the quarter from Q2/2023, the sales of the “D-segment sedan king” consistently fell below 200 units/month. It was not until the last month of the previous year that the volume of Toyota Camrys sold in the market exceeded 200 units thanks to promotional programs and discounts applied to clear out the remaining inventory.
| The entire D-segment sedan segment sold 400 units/month | |||||
| Sales of the D-segment sedan segment in January of this year (data: VAMA) | |||||
| Brand | Toyota Camry | Mazda6 | Kia K5 | Honda Accord | |
| units | 103 | 50 | 34 | 8 |
At the end of the first month of this year, Toyota Vietnam sold 103 Camry units. This is also the first month that sales figures for the hybrid version of this sedan are being reported separately. Specifically, the hybrid version sold 28 units, equivalent to 27.1% of all Toyota Camrys sold.
The move to separate the sales figures for the hybrid version on the sales results table shows a new perspective from VAMA and automakers on this somewhat new market segment. In the D-segment sedan segment, the Toyota Camry is the only model equipped with a hybrid engine, which is in line with the company’s goal of “greening” the automotive market.
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Toyota Camry. Photo: TMV. |
The Camry 2.5 HEV consumes 4.4 liters of gasoline per 100 km of mixed driving. This figure ranges from 6.3-7 liters/100 km for the 3 remaining versions without hybrid technology. The power of the Toyota Camry 2.5 HEV comes from a 2.5-liter gasoline engine combined with an auxiliary electric motor, producing 176 horsepower and 221 Nm of maximum torque, with the electric motor producing 88 horsepower and 202 Nm.
Meanwhile, the other 3 models in the segment, including the Mazda6, Kia K5, and Honda Accord, sold a total of 92 units. Among them, the Kia K5 recorded a sharp decline of 70.4% in sales compared to the last month of the previous year (115 units). Specifically, this D-segment sedan sold only 34 units in January, down 40.3% compared to the same period in 2023. Mazda Vietnam also sold 50 Mazda6 units, down 38 units compared to December 2023, equivalent to a decrease of 43.1%.
The Honda Accord is the only D-segment sedan that recorded positive growth in January of this year. According to VAMA’s report, Honda Vietnam sold 8 Accord units in January, up one unit compared to the previous month.
Sales of the D-segment sedan segment are expected to remain stagnant in the coming period unless a model receives special incentives and attracts customer attention.
