Vietnam’s budget gasoline cars are losing ground to electric rivals. Discover why sales are dropping and what buyers can expect – read more now.
In the past year, Vietnam’s low‑price gasoline‑powered A‑segment cars have seen a sharp decline in demand, while electric models from home‑grown manufacturer VinFast are soaring. The shift highlights a broader transformation in the country’s automotive landscape.
Sales slump of A‑segment gasoline cars
Overall A‑segment sales (compact hatchbacks and sub‑compact SUVs) fell from 26,023 units in 2024 to just 17,915 units in 2025 – a drop of over 30 %.
Kia Sonet, the best‑selling model in the segment, slipped from 7,313 units last year to 5,944 this year. Hyundai Grand i10 led the low‑floor hatchback market with 3,358 units, yet monthly volumes never reached the 400‑car threshold, underscoring the weakness.
Kia Morning experienced the steepest fall, losing more than 61 % of its sales – only 299 units were sold in 2025 compared with 771 a year earlier.
Other models also recorded declining numbers:
- Toyota Raize – 3,358 units
- Hyundai Venue – 2,395 units
- Toyota Wigo – 2,289 units
Even the newly introduced Suzuki Fronx, which entered the market with a lightweight hybrid system, managed just 231 units after two months on sale.
Rise of electric A‑segment models
While gasoline cars are slipping, VinFast’s electric lineup is charging ahead. The city‑friendly VF 3 sold an impressive 44,585 units, becoming the best‑selling vehicle in the entire Vietnamese market. Its sister model, the compact electric SUV VF 5, posted 43,913 units – roughly 2.5 times the total sales of all A‑segment gasoline cars combined.
These figures illustrate that small‑size EVs are rapidly capturing market share that traditionally belonged to internal‑combustion models.
Pricing moves and market impact
Some manufacturers have inadvertently eroded their own competitiveness. Recent price hikes include:
- An upgraded Kia Sonet with a higher sticker price.
- Toyota Raize, an imported model, whose price jumped by more than VND 500 million despite no significant feature changes.
- The refreshed Kia Morning arrived at the end of 2025 with a substantially higher price tag.
- Toyota Wigo discontinued its manual‑only variant early last year, leaving only the automatic G‑trim at VND 405 million.
These pricing decisions have reduced the price advantage that budget gasoline cars once enjoyed, making the comparatively cheaper EVs more attractive to cost‑sensitive Vietnamese buyers.
Outlook for gasoline A‑segment cars
Although a segment of Vietnamese consumers will likely continue to buy low‑cost gasoline cars for the foreseeable future, the trend is unmistakable: market share is shrinking, profit margins are thin, and manufacturers are facing mounting pressure to either reinvent their offerings or retreat from the segment.
In the short term, we may still see a niche market for affordable gasoline models, but without a clear sales recovery, many brands could consider scaling back or exiting the A‑segment altogether.
For now, the battle lines are drawn – budget gasoline cars are on the defensive, while electric rivals accelerate toward dominance.