Commercial Vehicles - Vietnam

Vietnam

In Vietnam, the Commercial Vehicles market is projected to see unit sales of 57.07k vehicles by 2024.
This market is expected to experience an annual growth rate (CAGR 2024-2029) of -0.22%, resulting in a projected market volume of 56.44k vehicles by 2029.
The production of Commercial Vehicles market in Vietnam is also expected to increase, reaching 69.73k vehicles by 2029, indicating the potential for significant growth in this market.
From an international perspective, it is noteworthy that the in the United States is anticipated to account for the majority of sales in 2024, with a volume of 11,630.00k vehicles units.
Vietnam's commercial vehicle market is experiencing a surge in demand for electric trucks due to government incentives and a growing focus on sustainability.

Definition

A commercial vehicle is a motor vehicle that is used for business or commercial purposes rather than personal use. These vehicles are designed and used for transporting goods and passengers or providing services in exchange for compensation. The specific definition of a commercial vehicle can vary from one jurisdiction to another, and it may encompass a wide range of vehicles, depending on their size, purpose, and usage.

Structure

The Commercial Vehicles market is structured into three markets:

Light Commercial Vehicles (LCVs): This market focuses on vehicles designed for the transportation of goods or provision of services on a relatively small scale. LCVs typically include vans, mini trucks, and small cargo vehicles used by businesses and individuals for local deliveries, trade, and various commercial applications. Light commercial vehicles are defined as vehicles meant for carrying goods or passengers with a gross vehicle weight rating (GVWR) of up to 3.5 tons with some variation based on specific vehicle models, designs, and regional regulations.
Buses: Buses are motor vehicles designed for the transportation of passengers, varying in size and capacity and ranging from small minibuses to large coaches. This market considers medium and heavy buses and coaches (MHBCs). The gross vehicle weight rating (GVWR) of MHBCs typically exceeds 3.5 tons.
Trucks: The Trucks market is dedicated to heavy-duty vehicles used for the transportation of goods over long distances. Trucks are motor vehicles designed to transport cargo, ranging from small delivery trucks to heavy-duty freight carriers. Only heavy commercial vehicles (HCVs) are considered in this market. HCVs are typically defined as vehicles with a GVWR of 16 tons or more.

Additional Information

The market includes the production and sales of commercial vehicles within a specific region, regardless of the brand or model. Private vehicles, recreational vehicles, construction, and agricultural vehicles, as well as specialty vehicles such as ambulances and fire engines, are not included in the Commercial Vehicles market.

Notable key players in the Commercial Vehicles market include industry giants such as Daimler AG, Volvo Group, and PACCAR Inc., as well as various regional manufacturers and specialized vehicle manufacturers. These companies play a pivotal role in shaping the market landscape and driving innovation within the industry.

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Market

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Analyst Opinion

The Commercial Vehicles market in Vietnam has been experiencing significant growth in recent years. Customer preferences in the market have been shifting towards more fuel-efficient and environmentally-friendly vehicles.

This is driven by increased awareness of the environmental impact of traditional vehicles and the desire for cost savings in fuel consumption. Customers are also looking for vehicles that offer advanced safety features and technological innovations. One of the key trends in the market is the growing demand for electric and hybrid commercial vehicles.

This trend is influenced by government initiatives to promote cleaner transportation and reduce carbon emissions. As a result, manufacturers are investing in research and development to introduce electric and hybrid models to cater to this demand. Another trend in the market is the increasing popularity of light commercial vehicles.

These vehicles are preferred by small businesses and individuals for their versatility and affordability. They are used for a variety of purposes, such as transportation of goods, delivery services, and personal use. The demand for light commercial vehicles is expected to continue growing as the economy expands and more businesses are established.

Local special circumstances in Vietnam play a role in the development of the Commercial Vehicles market. The country's rapid urbanization and industrialization have led to increased demand for commercial vehicles, especially in the logistics and transportation sectors. Additionally, the government's focus on infrastructure development, such as the construction of highways and expressways, has created a need for commercial vehicles to support these projects.

Underlying macroeconomic factors also contribute to the growth of the Commercial Vehicles market in Vietnam. The country's strong economic growth and rising income levels have increased consumer purchasing power, leading to higher demand for commercial vehicles. Furthermore, the government's efforts to attract foreign investment and promote manufacturing industries have resulted in increased production and sales of commercial vehicles.

In conclusion, the Commercial Vehicles market in Vietnam is experiencing growth due to customer preferences for fuel-efficient and technologically advanced vehicles, the increasing demand for electric and hybrid models, the popularity of light commercial vehicles, local special circumstances such as urbanization and infrastructure development, and underlying macroeconomic factors such as economic growth and rising income levels.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on unit sales and production of commercial vehicles.

Modeling approach:

Market sizes are determined through a combined Top-Down and bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey). In addition, we use relevant key market indicators and data from country-specific associations, such as consumer spending per capita on transportation and consumer price index for purchase of vehicles. 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, linear regression, the S-curve function and exponential trend smoothing methods are applied.

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.