The Korean and Japanese Car Wars: Has the Tide Turned?

While the influx of Chinese cars is currently a hot topic, the ongoing rivalry between Korean and Japanese car brands has always been the center of attention in Vietnam.

Japanese cars are often regarded as practical and reasonably priced, meeting customers’ expectations and needs. On the other hand, Korean cars are typically praised for their sleek designs, advanced technology, frequent model updates, and relatively affordable prices due to local assembly.

Shifting Winds

Among the car brands that publicly disclose their sales figures in Vietnam, there are six Japanese brands and only two Korean brands.

The Japanese car brands with disclosed sales data include Toyota, Mitsubishi, Mazda, Honda, Suzuki, and Isuzu. The Korean brands present in Vietnam are Hyundai and Kia, which share the same parent company but are distributed by different entities.

Numerically, Korean car brands are at a disadvantage compared to their Japanese counterparts. Not only do they have fewer representatives, but they are also falling behind in terms of sales figures.

Last year, Hyundai emerged as the top-selling passenger car brand in Vietnam, delivering 57,683 vehicles to customers. Toyota closely followed with 57,414 units sold, while Kia ranked third with 40,773 cars sold in Vietnam in 2023.

Although Mitsubishi didn’t rank high in overall sales for the past year, they boast the best-selling model, the Mitsubishi Xpander, with a total of 19,740 units delivered to Vietnamese customers.

Combined, Kia and Hyundai sold 98,456 vehicles in Vietnam in 2023. In contrast, the collective sales of Toyota, Mitsubishi, Mazda, Honda, Suzuki, and Isuzu during the same period amounted to 152,566 units.

In 2024, Korean car brands seem to be losing steam in the sales race against Japanese brands.

Combined sales of Hyundai and Kia in the first ten months reached 67,380 units, while the six Japanese brands recorded a total of 132,814 units sold.

Toyota has overtaken its Korean rival with 49,239 units sold, while Hyundai’s passenger car sales stood at 40,161 units during the same period.

Kia, with 27,219 units sold in the first ten months, has also relinquished its third-best-selling position to Mitsubishi. The introduction of the Mitsubishi Xforce, along with the strong sales of the Mitsubishi Xpander, propelled the Japanese brand’s sales to 32,334 units so far this year.

Korean Cars Lose Their Edge

Last year, three Korean car models made it to the top 10 best-selling cars in Vietnam: Hyundai Accent, Kia Sonet, and Hyundai Creta. Notably, the Hyundai Accent was the second best-selling car overall and the leader in the B-segment sedan category.

The Kia Sonet and Hyundai Creta were also the top-selling models in their respective segments. The Kia Sonet surpassed the Toyota Raize in the A-segment SUV category, while the Hyundai Creta became the best-selling B-segment SUV, outperforming the Toyota Corolla Cross by 234 units.

Hyundai Accent and Kia Sonet dominated their respective segments in 2023.

This year, two Korean car models remain in the top 10 best-selling cars, but the landscape has changed.

The Hyundai Accent, with 9,625 units sold, is now trailing the Toyota Vios in the B-segment sedan category. The Hyundai Creta is still in the top 10, but its sales have been surpassed by Japanese newcomers in the urban SUV segment, such as the Mitsubishi Xforce and Toyota Yaris Cross.

While the Hyundai Accent used to outsell the Toyota Vios in the first half of the year, it is now showing signs of slowing down. Although the Accent’s sales have been increasing in recent months, they haven’t been significant enough to surpass the resurgence of the Toyota Vios.

Similar to the Toyota Vios, the Hyundai Accent’s new generation has received mixed reactions regarding its redesigned exterior. The Accent’s prices have increased by 13-27 million VND compared to the previous model, now ranging from 439 to 569 million VND.

The decline of Korean cars is most evident in the urban SUV segment, where both the Hyundai Creta and Kia Seltos are falling behind the Japanese newcomers. Despite their local assembly advantage, Korean cars in this segment have yet to compete on equal terms with imported Japanese vehicles in terms of sales.

After ten months, the Mitsubishi Xforce leads with 11,444 units sold, followed by the Toyota Yaris Cross with 8,408 units. The Hyundai Creta has sold 6,409 units to Vietnamese customers, while the Kia Seltos has recorded 5,068 units in sales during the same period.

Hyundai Creta and Kia Seltos lag behind the Japanese newcomers in the urban SUV segment.

In the D-segment SUV category, the Hyundai Santa Fe started losing its leading position to the Ford Everest in 2023.

However, when compared to other Japanese competitors like the Toyota Fortuner and Mazda CX-8, the Hyundai Santa Fe is still considered a relatively successful Korean model in this segment.

The Kia Sorento is also going through a challenging phase. Last year, Sorento sold 1,459 units in Vietnam, but this year, Thaco has reported only 830 units sold as of the first ten months. The Korean SUV now ranks above only the Mitsubishi Pajero Sport and Isuzu mu-X in terms of sales.

What’s the Reason Behind This?

Some argue that Japanese cars are maintaining their success in Vietnam due to their strategy of offering attractive designs at competitive prices.

Indeed, this was the formula that propelled Korean car brands to success in Vietnam a few years ago. However, it appears that the Japanese brands have evolved, while the Koreans have shifted their focus towards “upscaling” their models to target a higher-end customer base.

There have been some controversies regarding the similarities in Mazda’s model designs and the new look of the Toyota Vios 2023. However, the successful redesigns of the Toyota Camry and Toyota Land Cruiser Prado are undeniable highlights for the Japanese car group.

The redesigned Toyota Camry and Toyota Land Cruiser Prado received positive feedback.

Meanwhile, Korean car brands are still navigating their design strategies. Kia is working on synchronizing the exteriors of its models, and Hyundai’s highlight for 2024 is the new Santa Fe.

Korean car prices are also no longer as affordable as they used to be. The Kia Sonet is a prime example, as its price range has increased significantly compared to the previous model. Starting at 539 million VND and going up to 624 million VND, it is now the most expensive A-segment SUV option in Vietnam.

The new Hyundai Santa Fe has also seen a price increase of nearly 100 million VND for the highest trim. With a price tag of 1.365 billion VND for the Calligraphy Turbo version, the Santa Fe unintentionally competes directly with its “older brother,” the Hyundai Palisade, priced at 1.469-1.589 billion VND.

The Hyundai Santa Fe showcases the brand’s design direction for this year.

In summary, the Korean-Japanese car rivalry in Vietnam will continue to spark interesting discussions around design, performance, pricing, and sales figures. The bipolar competition between Japanese and Korean car brands is likely to be influenced by the rise of VinFast and the latest wave of Chinese car brands entering the market.

Regardless of the outcome, the intense competition among car brands will ultimately benefit Vietnamese customers. Improved vehicle quality, diverse model options, and competitive pricing are what Vietnamese car buyers can look forward to in the future.

You may also like

The End-of-Season Rush: How Hot Cars Became the Season’s Hottest Commodity

Toyota Innova Cross and Mitsubishi Xpander, including the Xforce variant, are currently in short supply at many dealerships. There is expected availability of these vehicles from the end of December onwards.

The Ultimate Guide to November 2024 C-SUV Sales: Segment-Wide Growth, with Hyundai Tucson as the Undisputed Star

The Hyundai Tucson experienced an impressive growth spurt in November 2024, solidifying its position as the standout performer in the highly competitive C-SUV segment.

The Perfect Headline:

“Porsche Slashes Nearly a Third of its Dealers as Sales in China Take a Nosedive”

Porsche has announced a significant reduction in its dealer network in China, with plans to cut around a third of its dealerships by the end of 2026. In what the company terms an “optimization” strategy, the number of Porsche Centers in China will be streamlined to 100, a bold move that underscores Porsche’s commitment to efficiency and long-term growth in this crucial market.

The Urban SUV – A Head Start for the ‘Rookie’

The automotive industry has witnessed the launch of two stellar vehicles: the Mitsubishi Xforce and the Toyota Yaris Cross. These SUVs have taken the urban market by storm, quickly rising to the top of their segment.

Electric Dreams: VinFast Aims for the Top in Global EV Segment

The Vice President of Global VinFast Sales has ambitious plans for the company’s future in the electric vehicle market. With a laser-focus on the domestic market, their goal by 2025 is to not just maintain but extend their lead, leaving competitors behind and establishing themselves as a leader in the global electric vehicle segment.