The Korean Car Conundrum: Can They Compete in the Affordable Sedan Segment?

The B-segment sedan market in Vietnam has witnessed a shift, with the departure of the Suzuki Ciaz leaving only two Korean models to compete against four Japanese contenders. Not only are the Korean carmakers outnumbered, but their sales figures also seem to be lagging in this race.

Korean Cars Lose Their Edge

In the first two months of last year, the Hyundai Accent, despite modest sales, managed to be the best-selling B-segment sedan in Vietnam.

Fast forward to 2025, and the scenario has changed for the worse, not just for the Hyundai Accent but also for its compatriot, the Kia Soluto.

For the consecutive two months this year, the Hyundai Accent’s sales figures have trailed behind its direct competitors, the Toyota Vios and Honda City.

In February, the Toyota Vios took the top spot with 754 units sold, closely followed by the Honda City at 743 units. The Hyundai Accent came in third, with its sales dropping from 530 units in January to 455 units in the latest report.

This slow start is one of the reasons why the Hyundai Accent (985 units) is now trailing behind the Honda City (1,311 units) and Toyota Vios (1,244 units) in cumulative sales.

The Accent’s sales figures for the first two months also don’t create a significant gap when compared to the cumulative sales of 632 units achieved by the Mazda2.

In the trailing group, Mitsubishi has sold 108 units of the Attrage so far this year, while the Kia Soluto has managed to accumulate sales of just 43 units during the same period.

Affordable Sedans “Cooling Down”

Despite making it to the top 10 best-selling cars in Vietnam for February, both the Toyota Vios and Honda City recorded sales below 1,000 units in this report.

As for the Hyundai Accent, with a sales figure of 455 units, it failed to secure a spot in the top 10 best-selling cars for the month of February.

Toyota Vios and Honda City remain in the top 10 best-selling cars. Photos: Minh Quân, Bối Hạ.

The affordable sedan segment in Vietnam appears to be “cooling down” amid the rising popularity of small MPVs, urban SUVs, and the increasing availability of urban electric vehicle options.

In the sales ranking of internal combustion engine vehicles in Vietnam, the Toyota Vios, Honda City, and Hyundai Accent are still present in the top 10, but their positions are not as high as in previous years.

Within the B-segment sedan category, as mentioned, no model has been able to reach the 1,000-unit monthly sales mark since the beginning of the year. The segment’s overall sales dropped to 1,980 units in January’s report before slightly rebounding to 2,343 units in February.

The incentive and discount policies offered by car manufacturers are considered one of the factors that have helped improve the sales performance of the B-segment sedans in February’s report.

The Honda City, Toyota Vios, and Hyundai Accent are familiar names in their manufacturers’ promotional programs. These models continue to receive incentives in March to boost demand.

Specifically, all versions of the Honda City are supported with a 50% registration fee, along with an additional year of body insurance. With the current selling price of VND 499-569 million, customers buying the Honda City are supported with a registration fee equivalent to VND 25-28.5 million.

Many B-segment sedans are often promoted by carmakers. Photo: Mitsubishi.

Similarly, all three versions of the Toyota Vios are supported with a 50% registration fee, equivalent to a value of VND 23-27 million. The Hyundai Accent and other models of the same brand are offered a maximum discount of VND 75 million, applicable only to cars produced in 2024.

Mitsubishi Attrage cars produced in 2024 are supported with a maximum of 100% registration fee, along with a fuel voucher and a shark fin antenna. The total value of incentives ranges from VND 43-48.5 million depending on the version.

Also, in March, the Kia Soluto received incentives ranging from VND 5-27 million for all versions. The highest incentive of VND 27 million belongs to the Kia Soluto AT Deluxe, bringing the selling price down to VND 412 million.

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