The B-segment Sedans are Losing their Appeal

Once-leading models such as the Hyundai Accent, Toyota Vios, and Honda City have all experienced significant downturns. Accent sales plummeted to 530 units (a 71.5% drop), Vios reached 490 units (a 67.4% decrease), while Honda City managed to maintain its position with 568 units.

To salvage sales, automakers swiftly introduced promotional programs, offering discounts of a few million VND per car. Consequently, sales inched up to 2,343 units in February, with Toyota Vios reclaiming the top spot at 754 units.

In March, more aggressive incentives were introduced, including discounts of up to several tens of million VND and support for registration fees ranging from 50% to 100%. As a result, segment-wide sales climbed to 3,462 units, with Hyundai Accent surging ahead to take the lead.

However, this upward trend was short-lived as sales dipped again in April, falling by nearly 13% to around 3,000 units. Dealers in Ho Chi Minh City shared that despite ongoing promotions, buying momentum remained weak in May.

Entering June, several automakers continued their efforts to stimulate demand with new initiatives. Ford offered lottery prizes worth 3 billion VND to car buyers, Volkswagen waived registration fees entirely, and Toyota and Honda provided support for 50%-100% of the registration fees.

Nevertheless, not all models benefited equally from these programs. The Kia Soluto, despite its competitive pricing, managed to sell only 83 units in the first four months of the year. On the other hand, the Mitsubishi Attrage found more success, selling 665 units thanks to its affordable price tag of less than 350 million VND. The Mazda 2 maintained stability with over 1,500 units sold, benefiting from attractive pricing that started at just 403 million VND.

According to Mr. Ton Van Quyen, a sales manager at an automobile showroom in Tan Binh District, Ho Chi Minh City, many B-segment sedans, despite substantial discounts, are facing sluggish sales. A case in point is the Kia Soluto, which sold only 83 units in the first four months.

Other models, like the Mitsubishi Attrage, performed better due to its low price point (under 350 million VND), selling 665 units during the same period. The Mazda 2, with over 1,500 units sold, benefited from its appealing pricing strategy, starting at just over 400 million VND, according to Ms. Nguyen Thi Hien, director of the Hien Auto chain in Ho Chi Minh City.

Ms. Hien attributed the shifting consumer preferences to the allure of SUV and crossover designs, offering modern aesthetics, higher ground clearance, and better suitability for Vietnam’s road conditions. The intense competition from these segments, coupled with an array of new models, competitive pricing, and enhanced comfort features, has gradually eroded the dominance of B-segment sedans.

Industry experts believe that this segment still holds potential if manufacturers focus on product innovation, enhance service quality, and offer reasonable prices. However, achieving this requires a concerted effort from manufacturers, dealers, and supportive policies from governing bodies.