Kia Morning and Hyundai Grand i10 losing momentum

The Kia Morning only sold 124 cars in April. Photo: Vinh Phuc.

According to statistics from the Vietnam Automobile Manufacturers Association (VAMA), the sales volume of the small and affordable car group in April only reached 618 cars, a 26% decrease compared to the previous month. This number is even lower than the number of cars sold in March by the Hyundai Grand i10.

Compared to the same period last year (2,014 cars), the sales volume of the entire segment has decreased by nearly 70%. It is evident that with strong competition from the A+/B- SUV segment and the resurgence of sedans, the A segment cars have nearly lost their entire market share, making it challenging to regain the glory they had two years ago.

Hyundai Grand i10 sells fewer than 500 cars

In April, Hyundai Grand i10 sold 494 cars, a 26% decrease compared to the previous month. Compared to the same period last year (1,227 cars), the sales of this model plummeted by 60% despite various incentives.

This is also the first month this year that the number of Grand i10 cars sold on the market is less than 500. However, the Hyundai A segment car still dominates the entire segment compared to its only competitor, the Kia Morning.

With continuously declining sales volume month by month, it is highly likely that by the end of the second quarter, the sales volume of this model will not be able to sustain the segment in the face of competition from the A segment SUV group or upcoming micro cars in the market.

Unlike new cars, the secondary market is where the Hyundai Grand i10 creates strong competition. According to Q1 statistics from “Chợ Tốt Xe” (Car Market), the 2021 and 2022 Hyundai Grand i10 models are among the models with the highest price increase in the secondary market.

Specifically, the 2021 Hyundai Grand i10 is priced at about 337 million VND in Q1/2022, and now it has increased to over 397 million VND, equivalent to a growth rate of about 18%.

The sales of the Hyundai Grand i10 are plummeting in the new car market. Photo: TC Group.

In April, this A segment car was also offered with promotions to stimulate demand. When contacting Hyundai dealers in Ho Chi Minh City, the advisors mentioned that customers buying the Grand i10 in May will receive 100% support for registration fees and free car body insurance.

The Hyundai Grand i10 is currently distributed in Vietnam with 2 hatchback and sedan variants, and 6 versions with listed prices ranging from 360-455 million VND.

Kia Morning fades, Toyota Wigo has not made an impression

In March, the Kia Morning recorded a positive signal with a slight increase of 5 cars compared to the previous month. However, in the first month of the second quarter, the sluggish market quickly affected the sales volume of this A segment car, which reached only 124 cars, a 27% decrease.

Compared to the same period last year, the sales volume of this small Kia car decreased by 84.2%. In the first 4 months of this year, Thaco delivered only 603 Kia Morning cars, accounting for 18% of the total sales volume of the entire segment.

Similar to the Hyundai Grand i10, the Kia Morning also attracts its own group of customers in the secondary market thanks to its competitive price.

According to oto.com.vn, the Kia Morning is currently the third most increased price used car on the market. Specifically, the 2009 model is now sold at an average price of VND 209 million, only 39% lower than the price of a new car, even though it has been used for over 10 years.

The Kia Morning is also assembled in Vietnam and distributed with a total of 5 versions, with listed prices ranging from 389 million to 454 million VND.

The comeback of the Toyota Wigo is predicted to not save the entire segment. Photo: Kebayoran Lama.

The Toyota Wigo has also set a return date to the market this year, as many dealers continue to accept deposits. However, with the expected price of around 380 million VND, about 30 million VND higher than the previous version, the Toyota Wigo is likely to struggle to make a turnaround as the entire segment is already experiencing a sharp decline due to market trends.

Before withdrawing from the market due to not meeting the Euro 5 emission standards, the Toyota Wigo was actually struggling in the sales race with the Hyundai Grand i10 and the Kia Morning. Last year, the sales volume of this A segment car dropped to 0 from around June, and it could only end 2022 with a consumption of 488 cars in the Vietnamese market.

Upcoming Small Electric Cars

This year, the Vietnamese car market is expected to welcome the presence of a new segment: small electric cars with the Wuling Hongguang Mini EV from TMT Motors. Sharing with the press, TMT Motors stated that the launch date and start of accepting orders for the Wuling Hongguang Mini EV are planned for the second quarter. The selling price has not been disclosed yet.

The Wuling Hongguang Mini EV is scheduled to be launched in the second quarter of this year. Photo: TMT Motors.

In addition, on May 17, VinFast also announced its plan to produce a mini electric car. Therefore, the small electric car segment will have more options and officially compete with other segments in the Vietnamese market starting from the middle of this year.

With the advantage of price as well as its size being suitable for the geographical characteristics of narrow alleys in urban areas, the mini electric car segment is predicted to exert strong pressure on the A segment cars that are currently facing a lack of options and are not significantly cheaper compared to SUV models like the Toyota Raize or Kia Sonet.

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