Hyundai Motor outcompetes Toyota in Vietnam for the first time

Hyundai Motor Company has become the best-selling passenger car brand in Vietnam in the first quarter of this year, outcompeting Toyota, the leader in the Southeast Asian car market, for the first time.

According to the Vietnam Automobile Manufacturers' Association (VAMA), Hyundai Motor Company’s Vietnamese joint venture Hyundai Thanh Cong Vietnam Auto Manufacturing Corporation has sold 15,362 vehicles in the first quarter, followed by Toyota with 13,748 vehicles. This is the first time Hyundai Motor Company has exceeded Toyota in the Vietnamese market. Meanwhile, both companies have been affected by the COVID-19 outbreak with fewer sales year-over-year with an 8.5 percent decrease for Hyundai Motor Company and a much more significant 28 percent drop for Toyota.

According to the Vietnam Automobile Manufacturers' Association (VAMA), Hyundai Motor Company’s Vietnamese joint venture Hyundai Thanh Cong Vietnam Auto Manufacturing Corporation has sold 15,362 vehicles in the first quarter, followed by Toyota with 13,748 vehicles. This is the first time Hyundai Motor Company has exceeded Toyota in the Vietnamese market. Meanwhile, both companies have been affected by the COVID-19 outbreak with fewer sales year-on-year with an 8.5 percent decrease for Hyundai Motor Company and a much more significant 28 percent drop for Toyota.

The Southeast Asian car market has been long led by Japanese firms since Toyota, Nissan, and Honda built local manufacturing plants and penetrated the market early on. However, Hyundai Motor has seen its sales going up as its small sedans “Accent” and “Grandi10” have been well-received and sold 4,440 and 3,860 units, respectively.However, Hyundai Motor Company has seen its sales going up as its small sedans “Accent” and “Grandi10” have been well-received and sold 4,440 and 3,860 units, respectively.

Hyundai Motor has also achieved a sales increase by diversifying its sales into SUVs, such as “Tucson” and “Santa Fe.” Although Toyota has recorded higher sales than the South Korean automobile manufacturer in March with 5,143 cars versus 5,086 cars, Hyundai Motor has gained the confidence to compete in the new segment. The auto manufacturer finalized a plan in November last year to build a plant in Indonesia with the capacity to produce 250,000 vehicles per year and developed a blueprint to drive sales in the ASEAN market.


Hyung-Seok Seo skytree08@donga.com