Great Deals to Revitalize the High-End SUV Segment under 1 Billion VND

The Ford Territory’s sales are now down to under 500 cars per month due to market influences. Photo: Bối Hạ.

As the end of Q2 approaches, the Vietnamese automobile market remains in a sluggish state with significantly reduced sales compared to the same period last year. However, the mid-size SUV segment has seen stable purchasing power for some models, thanks to various promotional programs implemented by manufacturers and dealerships. Among them, the Mazda CX-5, Honda CR-V, and Mitsubishi Outlander have all recorded sales growth.

Mazda CX-5 Dominates Sales, Honda CR-V Continues to Grow

In May, Thaco sold 911 units of Mazda CX-5, a 12.1% increase compared to the previous month. However, the number of sales is still lower by about 51.5% compared to the same period last year.

Despite not yet reaching sales volumes above 1,000 cars per month, the Mazda CX-5 still maintains its position as the leader over the Ford Territory and continues to distance itself from its competitors. In the first 5 months of the year, Mazda CX-5 sold 4,177 units, leading in terms of sales in the segment.

Mazda CX-5 – Best-selling car in the mid-size SUV segment
Mid-size SUV segment sales in May (data: VAMA, TC Group)
Brand	Mazda CX-5	Ford Territory	Honda CR-V	Hyundai Tucson	Kia Sportage	Mitsubishi Outlander
	vehicles	911	416	326	167	160	150

This growth is attributed to ongoing discount programs and price reductions implemented by manufacturers and dealerships for several months since the beginning of the year.

In June, the Mazda CX-5 will continue to be eligible for discounts of up to 110 million VND ($4,870), depending on the version and distribution location. However, at many dealerships, the discount for the Mazda CX-5 is increased to 110-120 million VND ($4,870-5,305) in order to clear the inventory of 2022 VIN cars.

The Honda CR-V also recorded stable sales growth in May, contrary to the overall market trend. Specifically, Honda delivered 326 CR-V units in May, a 37.5% increase compared to the previous month.

In the first 5 months of the year, the sales of Honda CR-V reached 1,495 units, ranking third in the segment, behind the Ford Territory. This sales performance is the result of several months of promotional campaigns by Honda Vietnam for this mid-size SUV. Since late 2022, the Honda CR-V has been continuously offered with 50-100% reduction in registration fees to stimulate sales.

Thanks to various incentive programs, the sales of the Honda CR-V have rebounded in May. Photo: Bối Hạ.

In June, customers purchasing the Honda CR-V will continue to enjoy a 100% registration fee support policy, equivalent to a maximum value of 136 million VND ($6,000), depending on the version and registration location.

Currently, this model is available in Vietnam in 4 versions, with listed prices ranging from 998 million VND ($44,060) to 1.138 billion VND ($50,210). After incentives, the price of the Honda CR-V will range from 948 million VND ($41,900) to 1 billion VND ($44,060).

Ford Territory Losing Competitiveness

During its initial launch, the Ford Territory was expected to quickly claim the crown of the mid-size SUV segment with impressive sales in its first month (1,036 cars). However, as the automotive market has become sluggish this year, the appeal of this newcomer has quickly diminished.

Ford Territory Struggling
Ford Territory sales from December 2022 to May 2023 (data: VAMA)
Brand	12/2022	1/2023	2/2023	3/2023	4/2023	5/2023
	vehicles	1002	504	575	776	581	416

In May, Ford Vietnam delivered 416 Territory units to customers, bringing the total number of cars sold this year to 2,852 units. However, the drop in sales to below 500 cars per month has widened the gap between this newcomer and the Mazda CX-5.

In June, the Ford Territory will also be subject to double incentives by dealerships, including a 50% registration fee reduction and a cash discount of 20-30 million VND ($885-1,325) to stimulate sales. Additionally, customers purchasing a Ford Territory in June will also receive free vehicle insurance and genuine accessory packages.

Hyundai Tucson and Kia Sportage Selling Slowly

Although all car manufacturers have implemented discount programs in the first months of the year for almost all models, not every model has achieved the desired sales results.

In the slow-selling group of the mid-size SUV segment, only the Mitsubishi Outlander recorded positive growth after being offered promotions. Specifically, this model sold 150 units in May, an increase of 24 units compared to the previous month. However, this is still the slowest-selling model, accounting for only 7% of the total sales in the segment.

The slowest-selling model in the segment also recorded sales growth in May thanks to deep discounts. Photo: Mitsubishi.

Meanwhile, the Kia Sportage, although Thaco applied a discount of up to 100 million VND ($4,410) for the entire range, only achieved 160 units in May, a decrease of 20% compared to the previous month. As of the end of May, this mid-size SUV model has only sold 1,162 units, placing it among the 3 slowest-selling models in the segment.

The Hyundai Tucson, once a former leader in the mid-size crossover segment priced at around 1 billion VND ($44,060), is now experiencing sales below 200 cars per month. In May, TC Group sold 167 Tucson units, a 35.5% decrease compared to April and a 70% decrease compared to the same period last year. In the first 5 months of the year, only 1,157 Hyundai Tucson’s were sold. This figure is even lower than the sales of this model in January 2022.

In June, many Hyundai dealerships will continue to apply discounts for the Tucson to stimulate sales. Specifically, the Tucson 1.6 Turbo and 2.0 diesel versions will be discounted by up to 50 million VND ($2,205). Meanwhile, the standard gasoline and premium gasoline versions will be offered discounts of 40-45 million VND ($1,765-1,985).