Medium Cars - Vietnam

Vietnam

Highlights

Revenue in the Medium Cars market is projected to reach US$872m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.10%, resulting in a projected market volume of US$921m by 2029.
Medium Cars market unit sales are expected to reach 35.5k vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to US$26k.
From an international perspective it is shown that the most revenue will be generated China (US$89bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Customers in Vietnam are increasingly opting for medium-sized cars due to their versatility and affordability. Medium cars offer a good balance between fuel efficiency and interior space, making them suitable for both urban and suburban driving. Additionally, Vietnamese consumers value the reputation and reliability of international car brands, which often offer a wide range of medium-sized models to choose from.

Trends in the market: One of the key trends in the Medium Cars market in Vietnam is the increasing demand for electric and hybrid vehicles. As environmental concerns continue to rise, more Vietnamese consumers are looking for greener alternatives to traditional gasoline-powered cars. This trend is also supported by the government's push for the adoption of electric vehicles through various incentives and subsidies. Another trend in the market is the growing popularity of crossover SUVs in the medium-sized segment. Crossover SUVs combine the practicality of an SUV with the comfort and handling of a sedan, making them a popular choice among Vietnamese consumers. The higher ground clearance and spacious interiors of crossover SUVs make them well-suited for Vietnam's road conditions and the needs of growing families.

Local special circumstances: Vietnam's rapidly expanding middle class has been a key driver of the Medium Cars market. As disposable incomes increase, more Vietnamese consumers are able to afford medium-sized cars, leading to a higher demand in the market. Additionally, the country's improving infrastructure and road network have made medium-sized cars more accessible and practical for daily commuting and longer trips.

Underlying macroeconomic factors: Vietnam's strong economic growth and stable political environment have created a favorable environment for the Medium Cars market. The country's GDP growth has been consistently high, leading to an increase in consumer purchasing power. Additionally, the government's efforts to attract foreign investment and promote domestic manufacturing have resulted in the availability of a wider range of medium-sized cars in the market.

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).