Small Used Cars Lose Appeal Amidst Wave of New Electric and Conventional Cars
Fluctuations in search volume for keywords related to buying and selling used cars on Google in the Vietnamese market.
In the first quarter of 2025, Vietnam’s used car market witnessed a significant drop in demand, with an average of only about 1.9 million monthly searches related to buying and selling used cars, a decrease of approximately 17% compared to the same period in 2024 (2.3 million searches). This decline can be attributed to weakened purchasing power after the Lunar New Year holiday, extended holidays, and competitive pressure from new car manufacturers offering deep discounts to clear inventory. Additionally, the introduction of attractive pricing for electric cars and Chinese-made vehicles has also played a role in shaping market demand. Within just 72 hours of opening sales, VinFast Green recorded an impressive 46,000 bookings, setting a new market record.
The entire market experienced a slowdown, including large-scale salons with 50-80 cars. High inventory levels led to a downward trend in car prices. The segment most affected was small used cars in the A-segment, such as the Hyundai Grand i10 and Kia Morning, which were once among the most searched used cars. In the first quarter of 2025, only the Hyundai Grand i10 represented the hatchback A-segment with 267,360 searches. Meanwhile, an increasing number of used raised vehicles have captured buyers’ interest, including the Toyota Innova (354,791 searches), Toyota Fortuner (306,510 searches), Honda CR-V (293,887 searches), and Mazda CX-5 (277,052 searches).
The top 10 most searched used cars on Oto.com.vn in the first quarter of 2025 compared to the same period in 2024.
Price Reduction Pressure on Small Cars
Unlike the previous year’s trend of uniform price increases, the first quarter of 2025 witnessed a distinct price differentiation among segments, especially for small cars.
Hatchback A-segment and sedan B-segment cars experienced the most significant price drops, averaging around a 4% decrease. With a budget of 300-500 million VND, consumers can now easily afford a new car instead of opting for a used one.
In contrast, B and C-segment SUV models tend to hold their value better due to their versatility and suitability for Vietnamese road conditions. This indicates that the market is no longer reacting uniformly but is instead adjusting flexibly according to specific segments and actual demands.
Price fluctuations of used cars under 5 years old.
Slow Liquidation, Small Cars Struggle
Liquidation speed of used cars under 5 years old.
The overall market showed signs of slowing down compared to the previous year, but there was a significant gap between segments, indicating a shift in consumer behavior.
Used urban SUVs under 5 years old, such as the Kia Seltos, Hyundai Creta, and Mazda CX-5, maintained their popularity with stable demand and prices, resulting in an average liquidation speed of 10.8-13.5 days in the first quarter of 2025, just one day slower than the previous year. Some models, like the 2020 and 2021 Mazda 3 and the 2019, 2020, and 2021 Hyundai Santa Fe diesel, even achieved faster liquidation, typically closing deals within 7-10 days instead of the 12-18 days observed for other models.
In contrast, A-segment and sedan B-segment cars experienced slower sales, typically taking 12.8-14.8 days. Despite their affordable prices and previous popularity, these models now struggle to attract buyers as they fail to meet modern requirements for space, technology, and experience compared to new electric cars or Chinese-made vehicles in the same price range.
The used car market in the first quarter of 2025 indicates a shift in focus towards used SUVs and multipurpose vehicles, while small sedans face challenges due to limited space and fierce competition from new electric cars.
In the face of intensifying competition, distributors need to closely monitor segment trends, optimize inventory, adjust prices accordingly, and strategically select the right vehicle models to ensure liquidation and profitability.
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