“Sales Slump: Small Gas Cars Struggle to Find Buyers”

Last month, Kia Morning’s presence at the bottom of the sales chart for the entire market symbolized the decline of the A-segment in Vietnam.

As the Vietnamese market closed the first half of the year, only one name in the low-slung A-segment and A-SUV segment recorded sales of over 2,000 vehicles. With dwindling sales, have A-segment cars lost their appeal to Vietnamese customers?

Across-the-board Sales Decline

The Kia Sonet and Hyundai Grand i10 continue to be the best-selling models in their respective segments, A-SUV and low-slung A-segment.

However, compared to the same period last year, both the Kia Sonet and Hyundai Grand i10 have sold fewer units.

While still leading the sales chart in the A-segment, the Kia Sonet sold 2,489 vehicles in the first half of this year, almost 1,000 units less than the same period last year.

Similarly, the Hyundai Grand i10 sold only 1,594 units by the end of June, while sales in the first half of 2024 exceeded 2,000 vehicles.

The Toyota Raize and Hyundai Venue followed on the sales chart of the best-selling A-segment cars in Vietnam so far this year, with sales of 1,577 and 1,236 units, respectively.

The low-slung A-segment rivals of the Hyundai Grand i10, the Toyota Wigo and Kia Morning, brought up the rear of the list, with corresponding sales of 1,158 and 174 units in the first six months.

Among these, the Kia Morning continues to face an uncertain future in the Vietnamese market. Since the beginning of the year, the sales of the Korean brand’s A-segment model have never exceeded 60 units per month. The number of versions has also been reduced to two, while the possibility of a facelift remains unconfirmed, merely a rumor.

Kia Morning and Toyota Wigo are the slowest-selling A-segment cars in Vietnam. Photo by Bối Hạ.

Similarly, the Toyota Wigo, despite being highly regarded upon its return to the Vietnamese market, is facing challenges. While no longer far behind the Hyundai Grand i10 in sales, the Indonesian-imported Wigo has seen its sales drop compared to the previous year. The model has also had its variants reduced, currently only offering the G version in Vietnam at a price of 405 million VND.

Challenges Ahead

Many believe that low-slung A-segment cars like the Hyundai Grand i10, Toyota Wigo, and Kia Morning achieved success in the past due to their affordable prices.

At that time, the Vietnamese market did not offer many choices in the same price range, making this group of A-segment cars the preferred choice for first-time car buyers and young families.

As more automakers entered the market, offering more competitive prices and introducing new segments – especially urban electric vehicles, the position of the low-slung A-segment has been continuously challenged.

The Mazda2, priced at 403 million VND, is considered a more attractive option than the Kia Morning or Toyota Wigo. Photo by Thaco.

For example, the Kia Morning X-Line, priced at 424 million VND, or the Toyota Wigo (405 million VND) are not ideal choices when compared to the Thai-imported Mazda2 sedan 1.5L AT, priced at a promotional price of 403 million VND.

These gasoline A-segment hatchbacks also have slightly higher prices than urban electric vehicles such as the VinFast VF 3 (299 million VND) and Wuling Mini EV (from 197 million VND), but their interior space is not significantly more advantageous.

The Kia Sonet, despite being the best-selling A-segment model, faces pressure from new cars in the same segment. Priced between 539 and 624 million VND, the Kia Sonet competes with electric vehicles such as the Wuling Bingo (399-469 million VND) and VinFast VF 5 (529 million VND).

VinFast’s latest report shows that the VF 5 electric SUV sold 21,812 units in Vietnam in the first half of the year, outperforming all gasoline-powered rivals in the A-SUV segment. This performance has propelled the VinFast VF 5 to the second best-selling position in the overall market, second only to the VF 3 (23,083 units).

Vietnamese customers still favor small cars. Photo by VinFast.

The popularity of the VF 3 and VF 5 demonstrates that there is still a significant demand for small, A-segment cars among Vietnamese customers. The sales performance of the A-segment cars is following the wave of electrification – a trend that has, is, and will continue to strongly impact the entire Vietnamese automotive market.

However, the not-so-dismal sales of the Kia Sonet and even the Hyundai Grand i10 show that gasoline A-segment cars can still maintain a certain customer base in Vietnam. While sales may not boom as they did in the past, A-segment cars will not easily go out of style like the way B-segment hatchbacks have lost their influence on the Vietnamese market.

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