Pre-owned Chinese Cars Drop in Value Twice as Fast as Japanese and Korean Vehicles

According to recent surveys on popular used car platforms in Vietnam, cars from Chinese manufacturers tend to lose value more rapidly than their Japanese and Korean counterparts.

For instance, the MG HS, a 2022 model, loses approximately 33% of its value compared to its original purchase price. In contrast, the Hyundai Tucson from the same year only loses around 17%. Similarly, the MG5 depreciates by about 28% after two years of use, while competitors like the Kia K3 and Toyota Altis retain their value better, with losses of 19% and 10-12%, respectively.

MG has a vast distribution network across Vietnam, which helps mitigate depreciation compared to some other Chinese brands. For example, the BAIC U5 Plus (2022 model) has lost about 24% of its value, while the Mazda3 in the same segment has only depreciated by around 8%. An exception is the Beijing X7, a favorite among Vietnamese consumers, which only loses about 12% of its value after two years of ownership.

In reality, a car’s depreciation rate is influenced by various factors, including its quality, brand reputation, and customer satisfaction. If a new model is heavily discounted or offered with significant incentives, it can also impact the resale value of older models.

One of the main challenges for Chinese car brands in Vietnam is brand perception. Vietnamese consumers often hold preconceived notions about the quality and value proposition of Chinese-made vehicles, opting for the perceived reliability of Japanese or Korean cars.

However, despite the depreciation, Chinese car brands like MG and Beijing X7 have earned positive reviews from owners. Many report that their vehicles have maintained their quality and reliability even after extended use, with no significant issues arising.

In the last two years, there has been a surge of Chinese automakers entering the Vietnamese market, bringing fresh competition and choices. In 2024 alone, seven Chinese car brands made their debut in the country. Some, like Geely, Omoda, and Jaecoo (a Chery subsidiary), have even announced plans to establish local production facilities, targeting both the domestic market and global export opportunities.

TH (Tuoitrethudo)