Affordable Sedans: Falling Out of Favor with Buyers

The B-segment sedan market in Vietnam is showing signs of slowing down, with only the Toyota Vios making it to the top 5 best-selling internal combustion engine vehicles in the first quarter of this year.

The Return of the Big Three

In March, the Hyundai Accent witnessed a more than twofold increase in sales, reaching 1,049 units. While impressive, this figure was not enough to surpass the Toyota Vios.

During the same period, the Toyota Vios recorded sales of 1,041 units. Starting from 490 units at the beginning of the year, the Vios has consistently grown its sales throughout the first quarter.

The Honda City, after enjoying a boost from promotional offers, has cooled down. Its sales for March stood at 690 units, a slight decrease from the previous reporting period’s 743 units.

The Mazda2 sold 389 units in March, while the Mitsubishi Attrage saw a significant increase in sales to 273 units. Meanwhile, the Kia Soluto continued to lag behind as the slowest-selling B-segment sedan in Vietnam, with only 20 units sold.

After the first three months, the Toyota Vios temporarily leads the affordable sedan segment with cumulative sales of 2,285 units. It is also the only model in the segment to make it to the top 5 best-selling vehicles in Vietnam for the first quarter.

While the Hyundai Accent and Honda City have yet to take the top spot in the segment, their sales are not far behind the Vios. By the end of the first quarter, the Hyundai Accent had sold 2,034 units, while the Honda City, despite losing steam, managed to accumulate sales of 2,001 units over the three months.

The Mazda2 ended the first quarter with sales of 1,021 units. The Mitsubishi Attrage and Kia Soluto brought up the rear, with sales of 381 units and 63 units, respectively.

Are Vietnamese Customers Falling Out of Love with Affordable Sedans?

As mentioned, the Toyota Vios is the only B-segment sedan to make it to the top 5 best-selling internal combustion engine vehicles in the first quarter.

While the Hyundai Accent and Honda City didn’t make it to the top 5, they still managed to secure a spot in the top 10 best-selling vehicles. Their sales figures even outperformed the Mitsubishi Xforce, the market phenomenon in Vietnam for 2024, which sold 1,933 units.

Toyota Vios leads in sales among B-segment sedans. Photo: TMV.

Although the top 10 best-selling vehicles still include the big three: Toyota Vios, Honda City, and Hyundai Accent, their sales figures are no longer as impressive.

Instead, the higher positions in the sales rankings are now occupied by tall-riding vehicles such as the Mitsubishi Xpander (4,391 units), Ford Ranger (3,762 units), Mazda CX-5 (3,022 units), and Ford Everest with 2,134 units.

One of the reasons for the decline in sales of affordable sedans could be the shifting preferences of Vietnamese customers towards MPVs, urban SUVs, or even electric vehicles.

These vehicle segments offer attractive pricing compared to B-segment sedans, but provide more space and potentially lower running costs than their Toyota Vios, Hyundai Accent, or Honda City counterparts.

The Mitsubishi Xpander is emblematic of the shifting preferences towards MPVs in transportation services. Photo: MMV.

Once considered the go-to choice for transportation and fleet services, B-segment sedans are now losing their appeal due to the emergence of taller vehicles, electric cars, and competitively priced models from adjacent segments.

For instance, the New MG5 is a C-segment sedan priced at 399 million VND, undercutting the Toyota Vios, Hyundai Accent, and Honda City, and matching the pricing of A-segment vehicles. More recently, the MG G50 was launched with a starting price of 559 million VND, undercutting the top-spec Honda City and Hyundai Accent despite being an MPV.

Electric vehicles in the A-segment, such as the Wuling Bingo (399-469 million VND) and VinFast VF 5 (529 million VND), are also becoming attractive alternatives to B-segment sedans. VinFast has also introduced a range of electric vehicles specifically for transportation services, including the Minio Green (269 million VND), Herio Green (499 million VND), Nerio Green (668 million VND), and Limo Green (749 million VND).

While these electric vehicles may be smaller in size, their advantage lies in their running costs, which can be a persuasive factor not only for fleet operators but also for private buyers looking for a family vehicle.

The Wuling Bingo and VinFast VF 5 are gaining popularity among transportation service providers. Photos: Phúc Hậu, Duy Hiệu.

Currently, many B-segment sedans are being offered with promotions and incentives to boost sales and regain market share.

In April, buyers of the Toyota Vios received support for 50% of the registration fee for all versions, equivalent to a benefit of 23-27 million VND.

The Mitsubishi Attrage MT and AT Premium versions are offered with a maximum of 100% registration fee support, along with fuel vouchers and rear-view camera accessories. The total value of these incentives ranges from 46 to 48.5 million VND.

The Kia Soluto MT version is also being offered with a direct discount of 5 million VND, bringing the price of the manual transmission model down to 381 million VND.

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