Industria
Due to rapid urbanization and growth of passenger vehicle sales, Vietnam Automotive Aftermarket Service Industry is expected to grow at a CAGR of ~8.4% between 2020 and 2025: Ken Research
Rapid urbanization over the years is contributing to the growth of automotive market in Vietnam , as more and more consumers are migrating to urban cities. It is estimated that in FY'20, the urbanization rate stood at ~37.3% of its overall population compared to ~36.6% rate in FY'19. Urbanization serves as one of the growth drivers for the aftermarket service industry as consumers migrate for better payment opportunity in the cities, it allows them to have the financial means to avail private transport thereby increasing the prospect of aftermarket services. To curb excessive traffic jams in the cities, Hanoi , a major city in the Northern Region of Vietnam has proposed to ban motorcycles by 2030, thereby enhancing the opportunity of passenger vehicle sales for the country's fast growing middle class in coming years.
Aftermarket service companies in Vietnam has not been able to adapt to the growing significance of the online ecosystem over the years. However, the advent of COVID-19 has changed the perception of consumers towards the utilization of online space. More consumers are utilizing digital medium for buying and selling products as well as booking services through online medium. Similarly, there exist a shift in aftermarket service industry wherein consumers are preferring to book slots for their vehicle services online. Therefore, the automotive aftermarket service and spare parts companies are expanding their presence in the online space for better visibility among consumers and compete on the basis of brand integration. Servicing companies have initiated the process of online booking to enhance customer's convenience. This also helps the servicing companies to maintain COVID protocols such as curb in overcrowding in public places as set by the Vietnamese government.
With the advent of COVID-19, consumers were witnessed to be more concerned on maintaining personal health and hygiene. Therefore they are preferring the option of private transportation rather than availing public transport system. The change in consumer's behavior and preference is expected to act as an opportunity for the automotive aftermarket service industry in Vietnam . As more and more consumers prefer availing private transportation medium, the demand for new cars would surge in the coming years. With the surge in the vehicle parc, consumers would also require to periodically maintain their vehicle every 18 months as prescribed by the government of Vietnam , thereby the demand for aftermarket services would enhance. Therefore the future prospect of the industry looks strong wherein OEM and multi brand workshops in the market could utilize this opportunity to integrate the domain.
In order to curb the rising impact of climate change, governments all over the world have pledged to reach zero net carbon emissions by 2050. Hence, there is a greater deliberation of replacing fuel operated vehicles with electric vehicles (EVs) to minimise pollution. "National Automobile Development Strategy by 2025" adopted by the Vietnamese government aims to stimulate manufacturing and increase the volume of use of EVs in the coming years. With the integration of EVs in the market, vehicle service companies will have to update their equipment's and train their mechanics for servicing electric cars which would require huge investment by these companies thus, impacting their business financials. Unorganized workshops will face challenge in servicing EVs as they operate on lower budget than required to cater to the demand of EV ecosystem.
Domestic automotive and aftermarket services industry has not been able to invest in core and high end technology products such as transmission system. Localized parts required for vehicle servicing and production are mostly of low technology products such as tires, mirrors, glasses, batteries and plastic products. Therefore, aftermarket services industry in Vietnam remains largely dependent on imported components and spare parts, which increases their cost of operating their business.
The report titled by Ken Research suggested that the automotive aftermarket service industry in Vietnam is expected to grow further in the near future, with the surge in vehicle parc due to increased awareness on health and hygiene followed by the aftermath of COVID-19, thus showcasing a change in consumer preference from availing public transport to private transportation medium. As more consumers shift from availing motorbikes which has historically been the dominant form of transportation in Vietnam to availing four wheeler vehicles, the demand for aftermarket services would increase in coming years. Rapid urbanization coupled with fast growing middle class would act as major growth drivers for the aftermarket service industry in Vietnam . The market is expected to register a positive CAGR of 8% in terms of revenue during the forecast period of FY'20-FY'25E.
OEM/Authorized
Large Multi Brand
Small/Unorganized
Sedan
SUV
Hatchback
Compact SUV
MPV
0-3 years
3-6 years
6-9 years
9 years & above
North
Central
South
Online
Offline (including telephonic as well as Physical Booking)
Maintenance
Car Care
Accident Repair
Tires
Battery
Shocks & Struts
Oil & Lubricants
Drain Plug Gasket
Alternator & Starter
Others
Automotive Companies
OEM Vehicle Service Companies
Multi Brand Vehicle Service Companies
Automotive Spare Parts Companies
Government Bodies
Automotive Associations
: 2015-2020
: 2020-2025
Hyundai Vietnam
Toyota Motors Vietnam
Honda Vietnam
Mitsubishi Vietnam
Ford Vietnam
Suzuki Vietnam
Vinfast
Lexus
THACO
Vietnam Car Care
Thanh Phong Auto
Vuong Phat Auto
Garage Doanh Workshop
Thanh Tam Auto
Vu Khoi Garage
Pham Vu
Ngyuen Khoi
Liem Gia Phat
Denso
Yazaki
Sumitomo Electric
Toyota Boshoku
Harada
Hanoi Plastics
Casumina
Kumho Tires
Estec
Pinaco
Tam Hop
Vietnam Automotive Aftermarket Service Industry Overview
Value Chain Analysis of Vietnam Automotive Aftermarket Service Industry
Ecosystem of Major Entities of Vietnam Automotive Aftermarket Service Industry
Market Size of Vietnam Automotive Aftermarket Service Industry on the basis of Revenue and Number of Vehicles Serviced, FY'15-FY'20
Passenger Vehicle Sales in Vietnam , FY'15-FY'20
Vehicle Parc in Vietnam , FY'15-FY'20
Vietnam Automotive Aftermarket Service Industry Segmentation, FY'20
Competitive Analysis of Vietnam Automotive Aftermarket
Competition in Vietnam OEM Automotive Aftermarket Service Industry
Competition in Vietnam Multi Brand Automotive Aftermarket Service Industry
Company Profiles of Hyundai, Toyoto Motors, Vinfast, Mitsubishi Motors, Honda, Vietnam Car Care, Thanh Phong Auto, Vuong Phat Auto, Garage Doanh Workshop and Thanh Tam Auto
Pricing of Major OEM Automotive Service Companies
Pricing of Major Multi Brand Automotive Service Companies
Trends and Developments in Vietnam Automotive Aftermarket Service Industry
Issues and Challenges in Vietnam Automotive Aftermarket Service Industry
Porter 5 Forces Analysis of Vietnam's Automotive Aftermarket Service Industry
Government Regulations in Vietnam Automotive Aftermarket Service Industry
: OEM and Multi Brand Vehicle Servicing
Technology Platforms used by OEM and Multi Brand Vehicle Service Companies
Analysis of Multi Brand and OEM Workshops in
Vietnam
Operating Model of Multi Brand Workshops in Vietnam
Operating Model of OEM Workshops in Vietnam
Pain Points in the OEM and Multi Brand Aftermarket Industry
Opportunities in the OEM and Multi Brand Aftermarket Industry
Spare Parts Landscape in Vietnam
Market Size of Spare Parts Aftermarket Industry and Classification by Different Type of Spare Parts
Ecosystem by Different Type of Spare Parts and Consumables Market in
Vietnam
Impact of COVID in the Vietnam Automotive and Aftermarket Industry
Future Market Size of Vietnam Automotive Aftermarket Service Industry on the basis of Revenue and Number of Vehicles Serviced, FY'20-FY'25E
Future Outlook and Segmentations for Vietnam Automotive Aftermarket Service Industry, FY'20-FY'25E
Analyst Recommendation
Indonesia's automotive aftermarket service industry revenue stood at USD ~ billion in 2021 and recorded a CAGR of 5.4% during 2015-2021. The multi-brand workshops dominate the Indonesian automotive aftermarket service industry due to their cheaper service fee and generalized service offerings. ~% of the after-sales care service market is captured by the multi-brand service centers owing to its low service & spare parts cost and high preference by post warranty car owners. OEM car service centers in Indonesia witness the majority of the pre-warranty cars visiting their centers. High-quality service, genuine spare parts and more reliability on the OEM service centers are other reasons why a customer prefers the OEM service centers in Indonesia .
Malaysia automotive aftermarket service industry revenue stood at USD ~ Bn in 2020 and recorded a CAGR of 2.9% during 2015-2020. Multi-brand car service centers are majorly preferred by the users with out-of-warranty cars. Lower cost of multi-brand service centers & Availability of quality spares from reputed suppliers is leading to the growth of multi-brand car service centers in Malaysia . OEM car service centers in Malaysia witness the majority of the pre-warranty cars visiting their centers. High-quality service, genuine spare parts, and more reliability of the OEM service centers are other reasons why a customer prefers the OEM service centers in Malaysia .
The report also covers the trade scenario, trends and developments, issues and challenges, SWOT analysis, regulatory landscape, end user analysis, value chain analysis, PESTLE analysis, COVID-19 impact on automotive & spare parts transportation industry, decision making process, snapshot on control tower market, snapshot on pre-delivery inspection market, COVID-19 impact on automotive & spare parts warehousing industry, technological advancements & innovations, comparative landscape including cross comparison of major players operating in KSA automotive & spare parts logistics market and cross comparison of major players operating in KSA automotive market. The report concludes with future market projections on the basis of overall logistics and automotive & spare parts logistics revenue, by service mix and analyst recommendations highlighting the major opportunities and cautions.
Covid-19 pandemic has drastically affected the supply chain in automotive sector and dampened the consumer spending in these countries, resulting in reduced sales. The growth over the years in these countries has been gradual. In Bhutan , the CAGR over the years has been positive which expounds the expansion of automotive sector in the country. Although, government in Bhutan is trying to discourage the use of private vehicles in order to meet its sustainability goals and preserve the rich environment of country by increasing the taxes. Whereas, in Bangladesh government has heavily incentivized the sector by reducing taxes; the result has been a healthy growth of the sector.
Ken Research
Ankur Gupta , Head Marketing & Communications
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