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The once-popular A-segment cars are losing their appeal to Vietnamese customers due to the rise of electric vehicles in the same size category. The shift in consumer preferences is causing a decline in sales for models like the Hyundai Grand i10, Toyota Wigo, and Kia Morning.
Declining Market Share
In 2020, the A-segment sold 47,280 units, with VinFast Fadil and Hyundai Grand i10 being the top contributors. The following year, VinFast Fadil became the best-selling car in Vietnam, with 24,128 units sold, outperforming many established models.
However, with the exit of VinFast Fadil in July 2022, and the discontinuation of Toyota Wigo and Honda Brio, the segment’s sales dropped to 27,833 units in 2022 and further declined to 11,159 units in 2023.
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VinFast Fadil was a key player in the success of the A-segment. Photo: Vinh Phuc |
The introduction of A-segment SUVs like the Kia Sonet and Toyota Raize, offering similar pricing but more space, further intensified the competition.
| Declining Market Share of A-segment Cars | ||||||
| A-segment Car Sales in Vietnam, 2020-2024 | ||||||
| Brand | 2020 | 2021 | 2022 | 2023 | 2024 | |
| Total A-segment Car Sales | units | 47,280 | 45,126 | 27,833 | 11,159 | 9,261 |
In 2024, the remaining A-segment models, Hyundai Grand i10, Toyota Wigo, and Kia Morning, sold 5,831, 2,659, and 771 units, respectively. Meanwhile, the A-segment SUV, Kia Sonet, sold 7,313 units, outperforming its sedan counterparts.
Rise of Electric Vehicles
As the market share of gasoline-powered A-segment cars decreases, electric vehicles in the same size category are gaining traction. VinFast’s VF 3 and VF 5, for example, sold over 32,000 and 25,000 units in 2024, respectively, outselling their gasoline competitors.
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VinFast’s VF 3 and VF 5 are popular electric car models in Vietnam. Photo: VinFast |
Wuling Mini EV, another electric car in the small-size category, sold 1,094 units in 2024, a 130% increase from the previous year. These sales figures highlight the growing consumer interest in electric vehicles.
Cost Remains a Crucial Factor
The shift in consumer preferences for small cars in Vietnam is largely driven by cost considerations. While electric vehicles offer similar pricing to their gasoline counterparts, their lower operating costs make them more appealing.
For instance, the Wuling Mini EV is priced at 197-231 million VND, while the VF 3 ranges from 240-322 million VND, depending on the battery purchase or rental option. The VinFast VF 5 Plus, the top-selling electric car, costs 480 million VND with a battery rental option or 540 million VND with a battery purchase.
In comparison, the Toyota Wigo, a gasoline-powered car, is priced at 405 million VND for its sole automatic transmission variant. The Hyundai Grand i10 and Kia Morning range from 360-455 million VND and 349-424 million VND, respectively.
Electric vehicles also offer significant savings in terms of fuel costs. The Wuling Mini EV LV2, for example, consumes 0.093 kWh/km, resulting in a charging cost of approximately 297,000 VND for 1,000 km, based on the electricity rate of 3,197 VND/kWh.
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Electric vehicles offer lower operating costs. |
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