The Small Car, Big Impact: Affordable Autos Take Vietnam by Storm

September witnessed the most explosive reporting period of the year for the Vietnamese automotive market. According to data provided by the Vietnam Automobile Manufacturers’ Association (VAMA), Vietnamese customers purchased a total of 36,585 automobiles of various types in September, the highest figure since the beginning of the year.

The majority of automobiles in Vietnam witnessed an increase in sales during the first month of implementing preferential registration fees for domestically assembled vehicles, and the group of A-segment cars was no exception. However, instead of being cheerful, these affordable representatives seem to have more reasons to worry.

Improved Sales, But Not High Enough

In September, the group of low-riding A-segment cars saw two models with increased sales, with only the Toyota Wigo performing worse than the previous month. The Hyundai Grand i10 remained the best-seller with 561 units delivered to customers. The Toyota Wigo, despite a decrease in sales, still managed to sell 183 units, ranking above the Kia Morning with 62 units handed over to Vietnamese customers.

In the group of high-riding vehicles, the Kia Sonet grew by more than one and a half times to achieve a sales volume of 742 units. The Hyundai Venue accelerated with 482 units delivered to Vietnamese customers, while the Toyota Raize also experienced a slight increase in sales to 312 units.

After nine months, the A-segment is led by the Kia Sonet and Hyundai Grand i10, with sales of 5,083 and 3,292 units, respectively. The Toyota Raize and Hyundai Venue accumulated sales of 2,968 and 2,584 units since the beginning of the year, while the Toyota Wigo reached a sales volume of 1,900 units during the same period.

The Kia Morning became the slowest-selling model in the segment. This A-segment car from the Korean brand recorded sales of 551 units since the beginning of the year, equivalent to an average monthly sales figure of just over 61 units.

The sales data suggests that September was a positive month for most representatives in the A-segment car category. However, when examining the past performance and current achievements of this group of vehicles in Vietnam, there are reasons to believe that the small, affordable car segment is showing signs of decline.

Pressure from Adjacent Segments

Last year, the group of low-riding A-segment cars had only the Hyundai Grand i10 with relatively stable sales, amounting to 7,944 units. The SUV A-segment contributed the Kia Sonet to the list of the top 10 best-selling models thanks to a sales volume of 11,366 units.

At that time, many industry observers attributed the success of SUV A-segment models like the Kia Sonet to their higher ground clearance and advanced technology, positioning them as the most significant competitors to the Hyundai Grand i10, Toyota Wigo, and Kia Morning.

It is worth recalling that in 2021, the VinFast Fadil – an A-segment model that is no longer on sale – topped the sales charts in the entire Vietnamese market with more than 24,000 units sold. Also, during that year, the Hyundai Grand i10 ranked 9th in the best-selling list, achieving sales of 11,732 units.

In 2023, the Kia Sonet consistently ranked as the best-selling model for the Korean automotive brand until it concluded the year as the top-selling Kia in Vietnam, creating a gap of more than 1,700 units with its “older brother,” the Kia Seltos.

Fast forward to 2024, and while the Kia Sonet temporarily retains its position as Kia’s best-selling model, it has dropped out of the top 10 sales chart. Meanwhile, the Kia Carnival and Kia Seltos are closing in. After nine months, the Kia Sonet has sold 5,083 units, while the Kia Carnival and Kia Seltos have sold 4,276 and 4,253 units to Vietnamese customers, respectively.

The Hyundai Grand i10 received an update this year. Photo: TC Motor.

A similar situation can be observed with the Hyundai Grand i10. This A-segment model ended 2023 with sales of nearly 8,000 units, but after three quarters of 2024, its cumulative sales stand at 3,292 units, which is less than half of last year’s performance.

The decline of A-segment cars in Vietnam is not surprising given the overall downward trend in the automotive market. However, the shrinking market share of these small, affordable vehicles is significantly influenced by adjacent segments, such as B-segment sedans, urban SUVs, and small MPVs.

The Mitsubishi Xpander is currently the best-selling model with 12,956 units sold after nine months and remains a strong contender for the sales crown. New entrants in the urban SUV segment, such as the Mitsubishi Xforce and Toyota Yaris Cross, frequently appear in the top-selling charts, not to mention the presence of three B-segment sedans: the Toyota Vios, Hyundai Accent, and Honda City.

These vehicles are not excessively priced but offer superior space and technology. While these attributes previously helped A-segment SUVs outperform their low-riding counterparts, models like the Kia Sonet, Toyota Raize, and Hyundai Venue are now experiencing similar challenges in the face of competition.

Additionally, the group of small electric vehicles, including the VF 3 and VF 5 Plus, are considered contenders for market share within the A-segment.

Mini electric vehicles are gaining traction in Vietnam. Photo: Phương Lâm.

While the limitations of electric vehicles in terms of space utilization and range may be mentioned, their advantages are undeniable. These mini electric vehicles offer a compact size, ideal for maneuvering in urban areas, and significantly reduced operating costs compared to gasoline-powered cars.

Although VinFast does not disclose sales figures for individual models, sources from Tri thức – Znews indicate that in August, the VF 5 Plus recorded sales of 2,200 units. The previous month, this A-segment electric SUV sold nearly 2,600 units to Vietnamese customers.

VinFast also received nearly 28,000 non-refundable and non-transferable orders for the VF 3, its mini electric SUV, during the first three days of its introductory price offering. The first VF 3 units were delivered to customers at the beginning of August, and VinFast aims to deliver a minimum of 20,000 VF 3 units this year.

If VinFast achieves this goal, the VF 3 alone will have sold 20,000 units in 2024, surpassing last year’s sales champion, the Mitsubishi Xpander, and almost certainly outperforming the combined sales of the six gasoline-powered competitors in the A-segment.

The A-segment cars and SUVs, which once competed against each other, now face a common challenge: the rise of mini electric vehicles in Vietnam.

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