The Best-Selling Toyota Wigo: Why This Compact Car is a Surprise Hit with Vietnamese Drivers

The A-segment car market in Vietnam is currently a tight race between just three models: the Hyundai Grand i10, Toyota Wigo, and Kia Morning. With only a handful of competitors, this segment is struggling to keep up with the more attractive offerings in neighboring segments, making it a challenging space for these small cars in the Vietnamese market.

Struggling to Find Sales Footing

In June, the total sales for the A-segment dipped to 508 units, an 85-unit decrease from the previous month’s performance. This slump can be largely attributed to the significant drop in sales of the Hyundai Grand i10, which has been the volume leader in this affordable small car category.

June saw only 132 Hyundai Grand i10s sold in Vietnam, a nearly 59% decline from the previous month. This could be due to the transition from the older model to the upgraded version of the Grand i10, causing a temporary sales hiccup for the Korean brand.

Toyota Wigo Takes the Segment Crown
A-segment car sales for the last two months (Data: VAMA, TC Motor)
Brand	May	June
Toyota Wigo	200	299
Hyundai Grand i10	319	132
Kia Morning	74	77

On the other hand, both the Toyota Wigo and Kia Morning witnessed improved sales figures in the last month of the second quarter. With 299 units sold, the Toyota Wigo surpassed its rival, the Hyundai Grand i10, to become the best-selling A-segment car in Vietnam.

The Kia Morning also saw a slight growth in sales, reaching 77 units in June compared to 74 in May. However, its sales performance in the Vietnamese market remains modest, keeping it in the last position in the segment’s sales chart.

Despite its stumble in the last month of the quarter, the Hyundai Grand i10 maintained its position as the best-selling A-segment car in Vietnam for the first half of the year. Its cumulative sales reached 2,021 units, outperforming the Toyota Wigo by 735 units. The Kia Morning, with 397 units sold, accounted for only about 11% of the segment’s total sales.

What’s Next for the A-segment?

Last year, the A-segment as a whole sold 5,014 units in the first two quarters. In just one year, sales have dropped by over 26%.

The Hyundai Grand i10, the segment leader, has also seen a significant decline in sales, falling by nearly 47% from 3,858 units in the first six months of 2023 to 2,021 units in the same period this year. The Toyota Wigo’s return to the Vietnamese market hasn’t lived up to expectations, and the Kia Morning’s sales have yet to break the 100-unit mark in any month so far this year.

A-segment Car Sales in Vietnam Continue to Decline
Total A-segment car sales for the past two years (Toyota Wigo was reintroduced in June 2023) (Data: VAMA, TC Motor)
Brand	First Half 2023	Second Half 2023	First Half 2024
Total Segment Sales	5014	6145	3704

The challenges faced by the A-segment in Vietnam were anticipated, given the growth of neighboring segments like urban SUVs, B-segment sedans, affordable MPVs, and even the A-segment SUVs. These competitors offer similar pricing but are generally preferred due to their larger interior space and, in some cases, more advanced features.

The emergence of electric vehicle options with low running costs has also taken away the A-segment’s traditional advantage. For example, the VinFast VF 5 Plus has a running cost of approximately 450 VND/km, based on the public charging rate of 3,858 VND/kWh. In contrast, the fuel cost for A-segment cars like the Toyota Wigo, Hyundai Grand i10, and Kia Morning averages at least 1,100 VND/km, considering the gasoline price of 23,290 VND/liter (95-RON III) as of July 11th.

As a result, the A-segment is no longer the go-to choice for taxi and ride-sharing services, further diminishing its market share in Vietnam.

Overall, while the A-segment may still appeal to young families or first-time car buyers, the glory days of the Hyundai Grand i10 and Kia Morning seem to be over. The chances of another “phenomenon” like the VinFast Fadil emerging in this segment are slim, especially with Vietnamese buyers increasingly favoring taller vehicles.

The current trends also raise concerns that this segment may soon be discontinued in Vietnam, similar to what has happened and is happening to the B-segment hatchbacks.