Vietnam Used Car Market-- Fast growing middle class population, government regulation on motorbikes and affordability of used vehicles will contribute to the growth of used car industry, despite slowdown post-2018: Ken Research

Import Tax Reduction and Free Trade Agreements

In order to support the growth of automotive industry in motorcycle dominated Vietnam, the government, post 2018, has implemented policies and regulations for the reduction of new car prices. Import tax reduction to 0% for automotive parts and components from ASEAN region to free trade agreements signed with European Union extensively supports the sales of new passenger vehicles from foreign brands, acting as a deterrent to the used car industry. Coupled with that, the reduction of vehicle registration fees by 50% for domestically assembled and produced vehicles has contributed to the development of the domestic automotive manufacturing industry such as Vinfast negatively impacting the used car ecosystem.

Lack of Supporting Industries

Vietnam suffers from a poor localization rate due to underdevelopment of the supporting industries. For cars, the localization rate stood at a meagre 7-10% as of 2021, which is considerably lower than the fellow ASEAN countries of Thailand and Malaysia. As of 2021, there are currently ~100 Tier 1 Suppliers and less than 150 Tier 2 and Tier 3 spare parts supplier in Vietnam, which is considerably low considering 30,000 spare parts are required on an average to build a passenger vehicle. The lack of development of the supporting industries especially spare parts market, acts as a deterrent for repair services of used cars as it increases customer waiting time.

For More Information on the research report, refer to below link:-
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/vietnam-used-car-market-outlook-to-2026/515186-100.html

Competitive Landscape in Vietnam Used Car Market

Vietnam's used car market is highly fragmented with presence of large number of organized and unorganized multi brand dealers. Integration of online classified platforms such as Carmudi and Bonbanh in recent years along with the presence of captive dealers restricts the dominance of single player in the market. A notable shift in consumer preference post COVID-19 has contributed in the emergence of online ecosystem. Dealership networks which depends on the sales through their retail network is establishing their online presence in order to gain traction across Vietnam. Therefore, one of the important areas of competition would be the online visibility of players in coming years. Captive, multi brand and classified players compete on the basis of services offered such as vehicle inspection & valuation, financing & warranty facilities and quality checks among others.

Impact of COVID-19 on Used Car Industry

Even though the used car industry post 2018 has witnessed a decline in sales volume, but the advent of COVID-19 is contributing towards the positive outlook of the industry. Increased awareness on health and hygiene is acting as a catalyst for the shift in consumer's preference from availing public transportation to private transportation medium. The shift in consumer's preference is expected to contribute in the growth of passenger vehicle sales in coming years. Coupled with that, government initiatives to ban motorbikes by 2030 and development of road infrastructure facility is contributing in the shift towards consumer adapting to passenger vehicles compared to historically prevalent motorbikes.

The publication titled 'Vietnam Used Car Market Outlook to 2026: Driven by growing disposable income and shifting consumer preference from two-wheelers to four-wheelers" covers the overview of used car industry by analyzing historical statistics and corresponding developments in the used car market. Reduction of import tax to 0% for cars imported from ASEAN region, free trade agreements signed with European Union and support to the domestic automotive industry have subsequently deterring the growth of used car market post 2018. However, initiatives such as ban on motorbikes, fast growing middle class population and affordability of used vehicles is expected to contribute to the surging growth of the industry in coming years. Given the fragmented completion structure in the used car market, analysts have elaborated on competitive landscape of major captive dealers, multiband dealers and classified platforms on the basis of services offered and operational parameters. The report also covers a snapshot on online and offline used car business model, value chain analysis, growth drivers, buying decision parameters, business model, SWOT analysis, impact of COVID-19 and risk factors governing the future outlook of industry. The report also provides comprehensive insight on the market size and segmentation of the industry. Further, the report covers overview of the supporting industries such as auto-finance, aftersales and spare parts industry on the basis of market size. The report highlights the pain points of the auto-finance market along with detailed company profiles of major banking institutions and NBFCs. The report concludes with projections for future industry market size, market segmentations and analyst take on future market scenario.

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Key Segments Covered in Vietnam Used Car Industry:-

Vietnam Used Car Market

By Type of Vehicle

Sedans

SUVs

MPVs

Hatchbacks

Others

By Vehicle Age

0-3 years

3-5 years

5-7 ears

More than 7 years

By Region

Northern

Central

Southern

By Price

VND 0-200 Million

VND 200-400 Million

VND 400-600 Million

More than VND 800 Million

By Mileage

0-30,000 Km

30,000-60,000 Km

60,000-80,000 Km

More than 80,000 Km

By Vehicle Brand

Toyota

Ford

Kia

Honda

Hyundai

Others

By Supply Type

Domestic

Imported

By Mode of Sales

Online

Offline

By Channel Purchase

Organized Purchase

Non-Organized Purchase

By Financed vs Non-Financed

By Financing Type

Organized Financing

Unorganized Financing

Vietnam Auto-Finance Market and Auto Insurance Market

Total Car Loans Disbursed

Total Outstanding Loans

Auto-Insurance Market on the basis of Gross Premium

Key Target Audience

Captive Dealers

Multibrand Dealers

Classified Players

Banks, and NBFCs providing Financing Facilities

Automotive Companies

Government Bodies

Time Period Captured in the Report:-

Historical Period: 2015-2021

Forecast Period: 2021-2026F

Vietnam Used Car and Auto-Finance Players

Major Captive Dealers

Thanh Xuan Ford

Mercedes Benz An Du

Hyundai Dong Do

Toyota An Suong

Hien Toyota

Major Multi Brand Dealers

Anycar

Viet Han Used Car

Hoa Binh Auto

Viettin Auto

Major Classified Players

Oto

Bonbanh

Carmudi

Chotot

Choxe

Major Banks providing Auto-Financing Facilities

VIB Bank

TP Bank

VP Bank

Standard Chartered

Vietin Bank

Techom Bank

Woori Bank

Shinhan Bank

Major NBFCs and Captive Companies providing Auto-Financing Facilities

Mirae Asset

Toyota Financial Service

BMW Financial Service

Key Topics Covered in the Report:-

Overview of Vietnam Used Car Market

Ecosystem of Vietnam Used Car Industry

Vietnam Used Car Online and Offline Business Model

Market Size of Vietnam Used Car Industry (Gross Transaction Value and Sales Volume)

Market Size of Vietnam Used Car Industry on the basis of B2C, C2B and C2C Sales Channel

Vietnam Used Car Industry segmentation (By Type of Vehicle, By Vehicle Age, By Region, By Price, By Mileage, By Vehicle Brand, By Supply Type, By Mode of Sales, By Channel Purchase, By Financed vs Non-Financed and By Financing Type)

Cross Comparison of Major Dealers and Classified Players (Vehicle Inspection, Valuation of Car, Car Finance Service, Aftersales Service, Car Warranty Service, Certification, Customer Consulting Service, Workshops, Financing and Warranty Facilities)

Company Profile of Captive Dealers, Multi Brand Dealers and Classified Players (Company Profile, Process of Selling Used Cars, Major Services, USP, Financing Facilities, Popular Car Brands, Total Number of Used Car Listings, and Business Model)

Growth Drivers and Challenges to Vietnam Used Car Market

Industry trends and developments

Rules and Regulations by Government Bodies

Impact of COVID-19 and Future Outlook of Industry

Porter 5 Forces Analysis of Vietnam Used Car Industry

SWOT Analysis of Vietnam Used Car Industry

Buying Decision Parameters of Consumer's

Overview of Auto-Finance and Auto-Insurance Market in Vietnam

Market Size of Auto-Finance and Auto-Insurance Market (Total Credits Disbursed, Total Outstanding Loans)

Company Profile of Banking Institutions, NBFCs and Captive Auto-Financing Companies (Company Overview, Products, USP, Business Strategy, Loan Amount, Payment Methods, and Interest Rate Charged)

Overview of Aftermarket Services Industry in Vietnam

Overview of Spare Parts Industry in Vietnam

Analyst Recommendation

For More Information on the research report, refer to below link:-
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/vietnam-used-car-market-outlook-to-2026/515186-100.html

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