Large Cars - Vietnam

Vietnam

Revenue in the Large Cars market is projected to reach US$761m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.02%, resulting in a projected market volume of US$801m by 2029.
Large Cars market unit sales are expected to reach 18.2k vehicles in 2029.
The volume weighted average price of Large Cars market in 2024 is expected to amount to US$44k.
From an international perspective it is shown that the most revenue will be generated in China (US$106,200m in 2024).

Key regions: Worldwide, China, India, Germany, Europe

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Analyst Opinion

The Large Cars market in Vietnam has been experiencing significant growth in recent years. Customer preferences in Vietnam have shifted towards larger vehicles due to a variety of factors.

Additionally, local special circumstances and underlying macroeconomic factors have contributed to the development of this market. Customer preferences in Vietnam have been influenced by a growing middle class and increasing disposable incomes. As a result, consumers are seeking larger and more luxurious cars that provide comfort and prestige.

The desire for larger vehicles is also driven by the need for more space, as families in Vietnam are becoming more nuclear and require vehicles that can accommodate multiple passengers and luggage. Trends in the market indicate that consumers in Vietnam are increasingly opting for SUVs and crossovers. These vehicles offer a combination of spaciousness, versatility, and off-road capabilities, which are appealing to Vietnamese consumers who enjoy outdoor activities and traveling to rural areas.

Additionally, SUVs and crossovers provide a higher driving position and better visibility, which are valued by Vietnamese drivers in the congested urban areas. Local special circumstances have also contributed to the growth of the Large Cars market in Vietnam. The country's infrastructure has been improving, with the construction of new highways and roads, making it easier for consumers to travel longer distances.

This has fueled the demand for larger cars that can handle these longer journeys. Moreover, the Vietnamese government has implemented policies to encourage the production and consumption of domestic automobiles, which has further boosted the market for large cars. Underlying macroeconomic factors have played a significant role in the development of the Large Cars market in Vietnam.

The country's economy has been growing at a rapid pace, leading to an increase in overall purchasing power. This has allowed more consumers to afford larger cars and has contributed to the rising demand for such vehicles. Additionally, low interest rates and favorable financing options have made it easier for consumers to purchase large cars, further stimulating market growth.

In conclusion, the Large Cars market in Vietnam has experienced significant growth due to shifting customer preferences, local special circumstances, and underlying macroeconomic factors. Consumers in Vietnam are increasingly opting for larger vehicles, particularly SUVs and crossovers, which provide comfort, versatility, and prestige. The country's improving infrastructure and government policies have also contributed to the growth of this market.

With the continued growth of the middle class and the overall economy, the Large Cars market in Vietnam is expected to continue its upward trajectory 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).