The most “crowded” segment in Vietnam’s auto market

In Vietnam, the B-segment sports utility vehicle (B-SUV) category was only “opened up” about 10 years ago, starting with the launch of the Ford EcoSport in late 2014. Ford’s model arrived like a breath of fresh air and dominated the segment on its own during 2015–2018. Later, the launch of the Hyundai Kona in 2018 put significant pressure on EcoSport and gradually took away its market share.

Seeing the potential of compact SUVs in Vietnam, from 2020 onward, a lot of other automakers, from Toyota, KIA, Mazda, Nissan, Honda, Peugeot, to Volkswagen, Subaru and Skoda, along with many Chinese brands, have jumped in and continuously introduced new models.

In just about the past year, at least six new B-SUV models have appeared in Vietnam, including Subaru Crosstrek, Haval Jolion, Geely Coolray, Omoda C5, Skoda Kushaq, and BYD Atto 2. At the same time, several models received updates during the year, such as Hyundai Creta, Honda HR-V, Peugeot 2008, and Mazda CX-3.

Beyond traditional internal combustion engine models, the segment has also welcomed a number of noteworthy pure electric and hybrid vehicles. Most notably, VinFast VF 6 was launched in September 2023 with prices ranging from VND689–749 million for versions with the standard battery.

In total, Vietnam’s auto market now records the presence of more than 25 models competing in the B-SUV segment, making it one of the most crowded and fiercely competitive arenas today.

The strong presence of brands from Japan, South Korea, Europe, and China, with a diverse product lineup spanning conventional gasoline vehicles to hybrids and electric cars, underscores the segment’s growing appeal to domestic consumers.

Alongside the influx of brands, a wave of unprecedented promotions and deep discounts has been rolled out to stimulate demand and enhance competitiveness, helping many models in the segment achieve strong sales in recent months.

According to sales reports from automakers, VinFast VF 6 led the segment with 19,750 units sold in the first 11 months of 2025. In addition, internal combustion engine models such as the Toyota Yaris Cross/Corolla Cross duo, Mitsubishi Xforce, and Hyundai Creta also posted high sales and frequently ranked among the market’s best-selling vehicles.

“Squeezing” C-segment sedans in Vietnam

Against a backdrop where Vietnam’s auto market grows at only about 7–8 percent per year, the expansion of one segment inevitably creates pressure and reduces the “pie” available to others.

While B-SUVs continue to surge in sales and become the preferred choice for many consumers, the C-segment sedan category, priced similarly at around VND600–800 million, has fallen into a prolonged slump.

Declining appeal, coupled with changes in usage needs and customer preferences, has caused C-segment sedans to gradually lose their traditional advantages, forcing them to cede ground to the rising wave of versatile high-riding vehicles.

Currently, the segment is left with only about seven models, most of which have been on the market for quite some time and see few updates. Sales volumes are also relatively weak.

The most prominent name in the segment, Mazda3, sold just 325 units in November, bringing its year-to-date total to 2,546 units. KIA K3 ranks second with cumulative sales of only 1,489 units. Meanwhile, Honda Civic, Hyundai Elantra, and Toyota Corolla Altis each failed to surpass 100 units per month.

Experts commented that the strong rise of B-SUVs is not merely a short-term trend but is gradually forming a clear substitute role for C-segment sedans within the same price range.

As customer demand increasingly favors versatility, flexibility, and suitability across varied driving conditions, the traditional strengths of C-segment sedans, such as driving feel and stability, are no longer enough to retain buyers.

Instead, B-SUVs attracts buyers with youthful design, increasingly advanced safety features and technology, urban-friendly dimensions that still handle long trips and challenging terrain. Notably, the emergence of electric and hybrid variants, fuel-efficient yet powerful, has become a new market trend.

As Vietnam’s auto market gradually recovers, coupled with abundant supply and competitive pricing policies, the B-SUV segment is expected to remain “hot” in the coming years. This also means C-segment sedans will continue to face significant challenges unless they undergo major changes to reclaim their former position.

Hoang Hiep