Once a "national choice" in Vietnam for their compact size and affordable price, A-segment urban cars are increasingly being overlooked.

By the end of 2024, total sales of the A-segment urban cars segment in Vietnam had reached 9,000 vehicles, down 17 percent compared to 2023, 64 percent to 2022 and down nearly 80 percent to 2021, which was the golden days of this segment.

In the first half of 2025, market segment continued to fall down, with only 3,000 units sold, clearly showing its declining position in the market.

The A-segment now has only three models: Hyundai Grand i10 (VND360–455 million), Toyota Wigo (VND405 million), and KIA Morning (VND349–424 million). Except for the Hyundai Grand i10, which maintains all six versions, the other two models have reduced their offerings. Wigo is now available only in an automatic variant, while the KIA Morning has cut down from five to just two versions: MT and X-Line.

Several reasons explain the significant sales drop in the A-segment. First, competition comes from other vehicle segments. Urban high-riding cars in the A/B segment are the biggest rivals, as consumers increasingly prefer them for their spacious interiors, abundant comfort and safety features, modern designs, and higher ground clearance suited to Vietnam’s road conditions.

Notably, the price gap between A-segment urban cars and A/B-segment SUVs is no longer significant, prompting many consumers to spend a little more for a more versatile and comfortable vehicle.

Moreover, the pricing of A/B-segment SUVs has also impacted B-segment sedans, forcing manufacturers to lower prices to stay competitive and maintain market share. This has led to B-segment sedans encroaching on the price range of the lower segment.

In the past two months, several B-segment sedan models have seen price reductions to below VND400 million. For example, the standard Mazda2 AT is now priced at VND399 million after discounts, and the Mitsubishi Attrage MT is at VND342 million with a 100 percent registration fee waiver. Both models are imported from Thailand.

Another B-segment sedan, the KIA Soluto MT, is priced at VND376 million. Unlike the Mazda2 and Mitsubishi Attrage, the KIA model is domestically assembled.

Additionally, the emergence of small electric vehicles like the VinFast VF 3 and VF 5, which offer lower operating costs and registration fee exemptions, has diminished the cost advantage of traditional gasoline-powered A-segment urban cars.

Lastly, the mindset of "first-time car buyers" has changed. Instead of choosing a compact, affordable car, many are willing to take loans or spend more to own a more "worthy" vehicle that better meets diverse family needs.

Hoang Hiep