Luxury Cars - Vietnam

Vietnam

Highlights

Revenue in the Luxury Cars market is projected to reach US$230m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.28%, resulting in a projected market volume of US$246m by 2029.
Luxury Cars market unit sales are expected to reach 3.6k vehicles in 2029.
The volume weighted average price of Luxury Cars market in 2024 is expected to amount to US$67k.
From an international perspective it is shown that the most revenue will be generated United States (US$7bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Luxury Cars market in Vietnam has been experiencing significant growth in recent years.

Customer preferences: Vietnamese consumers have shown a growing interest in luxury cars, driven by their desire for status and prestige. Luxury cars are seen as a symbol of wealth and success, and owning one is considered a status symbol. Additionally, Vietnamese consumers are increasingly valuing comfort, safety, and advanced technology features in their vehicles. As a result, luxury car brands that offer these features are gaining popularity among consumers in Vietnam.

Trends in the market: One of the major trends in the luxury car market in Vietnam is the increasing demand for SUVs. SUVs offer a combination of luxury, comfort, and practicality, making them a popular choice among Vietnamese consumers. Luxury SUVs are particularly sought after due to their spacious interiors, advanced safety features, and off-road capabilities. As a result, many luxury car brands have been introducing new SUV models to cater to this growing demand. Another trend in the market is the rise of electric and hybrid luxury cars. With the increasing concern for the environment and the need for sustainable transportation solutions, Vietnamese consumers are showing interest in electric and hybrid vehicles. Luxury car brands are responding to this trend by introducing electric and hybrid models in the Vietnamese market. These vehicles not only offer luxury and performance but also contribute to reducing carbon emissions.

Local special circumstances: Vietnam's rapidly growing economy and rising middle class have played a significant role in the development of the luxury car market. As disposable incomes increase, more Vietnamese consumers are able to afford luxury cars. Additionally, the government's efforts to improve infrastructure and develop the automotive industry have also contributed to the growth of the luxury car market in Vietnam.

Underlying macroeconomic factors: Vietnam's strong economic growth, stable political environment, and favorable investment policies have attracted foreign luxury car brands to enter the Vietnamese market. These brands have been expanding their dealership networks and investing in marketing and promotional activities to increase their presence in the country. Furthermore, the growing urbanization and increasing number of high-net-worth individuals in Vietnam have created a favorable market for luxury cars. In conclusion, the Luxury Cars market in Vietnam has been experiencing significant growth due to the increasing consumer preferences for status, comfort, and advanced technology features. The rise in demand for SUVs and electric/hybrid luxury cars reflects the changing preferences of Vietnamese consumers. The country's growing economy, stable political environment, and favorable investment policies have attracted foreign luxury car brands to enter the market. With these factors in place, the luxury car market in Vietnam is expected to continue its growth trajectory in the coming years.

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).