Passenger Cars - Vietnam

Vietnam

Revenue in the Passenger Cars market is projected to reach US$8.0bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 1.17%, resulting in a projected market volume of US$8.4bn by 2028.
The market's largest segment is SUVs with a projected market volume of US$3.2bn in 2024.
Passenger Cars market unit sales are expected to reach 259.10k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$32.01k in 2024.
With a vehicle unit sales share of 22.6% in 2024, Toyota is expected to have one of the highest market share in the selected region.
The value market share of the make Toyota in the selected region is expected to stand at 24.3% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Vietnam is experiencing significant growth and development.

Customer preferences: In recent years, there has been a shift in customer preferences towards passenger cars in Vietnam. This can be attributed to several factors such as rising disposable incomes, changing lifestyles, and increased urbanization. As people's purchasing power increases, they are more inclined to invest in passenger cars for personal use. Additionally, the growing middle class in Vietnam has led to an increase in demand for passenger cars as a status symbol and a means of transportation.

Trends in the market: One of the key trends in the passenger cars market in Vietnam is the increasing popularity of compact and fuel-efficient cars. With rising fuel prices and a growing awareness of environmental issues, customers are looking for cars that are cost-effective and eco-friendly. As a result, car manufacturers are focusing on producing smaller, more fuel-efficient models to cater to this demand. Furthermore, there is a growing trend of customers opting for technologically advanced features in their cars, such as touchscreen infotainment systems, GPS navigation, and advanced safety features.

Local special circumstances: Vietnam is a country with a young population and a rapidly growing economy. This has created a favorable environment for the growth of the passenger cars market. The government has also implemented policies and initiatives to promote the development of the automotive industry, such as reducing import taxes and providing incentives for car manufacturers to set up production facilities in the country. Additionally, the improving infrastructure in Vietnam, including the expansion of road networks and the development of smart cities, has further contributed to the growth of the passenger cars market.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the passenger cars market in Vietnam. The country's GDP has been steadily increasing, leading to higher disposable incomes and greater purchasing power among consumers. Additionally, Vietnam has experienced rapid urbanization, with more people moving to cities and requiring personal transportation. Furthermore, the government's focus on industrialization and economic development has attracted foreign investments in the automotive sector, leading to the establishment of manufacturing plants and the availability of a wider range of car models in the market. In conclusion, the passenger cars market in Vietnam is growing and evolving due to changing customer preferences, the emergence of new trends, local special circumstances, and underlying macroeconomic factors. As the country continues to develop and its population becomes more affluent, the demand for passenger cars is expected to further increase in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).