Is the Small Gasoline Engine Car ‘Disappearing’ from the Vietnamese Market?

The A-segment car market in Vietnam is witnessing a decline in sales. In the first month of the year, the group of small cars including the Hyundai Grand i10, Toyota Wigo, and Kia Morning recorded a total sales figure of 450 units, while the A-segment SUV category, consisting of the Kia Sonet, Toyota Raize, and Hyundai Venue, achieved a combined sales performance of 930 vehicles.

Korean Cars Remain Dominant

Within each segment, Korean car brands continue to lead in sales, despite a slight dip in performance during the initial month of the year.

The Hyundai Grand i10 maintained its top position in the low-slung A-segment with 221 units sold in January. Closely following is the Toyota Wigo with 197 units, while the Kia Morning lags with a sales figure of 32.

In the A-segment SUV category, the Kia Sonet demonstrated its popularity with 421 units sold, outperforming the Toyota Raize (329 units) and the Hyundai Venue (180 units).

The overall sales figure for gas-powered A-segment cars in Vietnam stood at 1,380 units in the first month of the year. In comparison, the total sales for the same category in December 2024 were recorded at 2,814 units.

The continuous decline in sales has raised questions about the future prospects of these small cars.

The low-slung A-segment used to be a highly competitive arena, featuring a diverse range of models from Korean, Japanese, and even Vietnamese brands.

This list included the Daewoo Matiz, Hyundai Getz, Chevrolet Spark, Suzuki Celerio, Honda Brio, Mitsubishi Mirage, and VinFast Fadil, all of which have ceased sales for various reasons.

Numerous A-segment cars have disappeared from the Vietnamese market due to various reasons. Photo: Vĩnh Phúc.

Meanwhile, the A-segment SUV category, once considered a fresh addition with the introduction of the Kia Sonet and Toyota Raize, and blamed for eating into the market share of low-slung A-segment cars, is now also facing a sales slowdown.

The Rise of Electric Vehicles

As the sales of gas-powered A-segment cars show signs of weakening, the Vietnamese market is witnessing a robust growth in electric vehicle sales.

According to VinFast, the company sold over 4,000 VF 3s and approximately 3,300 VF 5 Pluses to local customers during the first month of the year.

This means that the VF 3 alone outsold the combined sales of all gas-powered A-segment cars by nearly three times, while the VF 5 Plus’s sales figure is 3.5 times that of its pure gas-powered competitors in the same segment.

The VF 3 and VF 5 Plus electric duo lead the market in Vietnam. Photo: VinFast.

The cost advantage of electric vehicles makes them a compelling choice for customers, especially those in the ride-hailing business. While low-slung A-segment cars used to be the go-to option for this customer segment due to their affordability, they are now losing appeal due to the preference for larger vehicles.

In Vietnam, the Wuling Bingo and Wuling Mini EV are also electric vehicles that fall within the A-segment or smaller.

TMT Motors has announced plans to introduce additional small cars from the Baojun brand this year, including the Baojun E100 and Baojun Yep.

The two-door electric car Baojun E100 is confirmed to be coming to Vietnam soon. Photo: TMT Motors.

The Wuling Mini EV will also be updated to a new generation, including a five-door variant. Additionally, TMT Motors has confirmed plans to introduce the Baojun Yep Plus, a five-door version of the Baojun Yep.

It remains uncertain whether BYD will bring the BYD Seagull to the Vietnamese market. Given the dynamic nature of the small electric vehicle market in the country, it is likely that the Chinese automaker will also join the fray with its affordable electric offering.

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