For decades before 2023, the A-segment hatchback consistently held the title of the most affordable car in the Vietnamese market. These compact vehicles, equipped with basic features, primarily targeted first-time buyers prioritizing a low initial investment.

Models like the Kia Morning and Hyundai i10, benefiting from domestic assembly and configurations tailored to Vietnamese consumers, dominated the segment with their competitive pricing. Japanese and American manufacturers, including Honda, Suzuki, and Chevrolet, briefly ventured into the A-segment hatchback market but eventually withdrew due to poor sales. Toyota remains, but sales of its Indonesian-imported Wigo lag significantly behind its Korean rivals.

Currently, the base models of the Hyundai i10 and Kia Morning are priced between 350 and 360 million VND. However, both manufacturers have reduced the number of available versions due to low market demand. 3 to 4 years ago, both the i10 and Morning offered even more affordable versions primarily aimed at ride-hailing services. For instance, the Kia Morning MT, lacking airbags and featuring a 1.2L engine with a 5-speed manual transmission, was priced at 299 million VND.

However, even Kia's offering wasn't the cheapest car on the market. Between 2015 and 2016, Chevrolet, which exited the Vietnamese market in 2020, sold two-seater Spark Van models for under 280 million VND.

Following the A-segment hatchback's reign, the entry-level price for cars in Vietnam has been redefined by the emergence of electric crossovers. Wuling and VinFast have spearheaded this shift.

The Wuling Mini EV at its launch event in Ho Chi Minh City in late June 2023. Photo: Pham Trung

The Wuling Mini EV at its launch event in Ho Chi Minh City in late June 2023. Photo: Pham Trung

In June 2023, TMT Motors launched the domestically assembled Wuling Mini EV with a starting price of 239 million VND, hoping to replace high-end scooters. However, market demand fell short of expectations, prompting the company to lower the starting price to 197 million VND and now offer only LV2 versions.

TMT Motors aims to further reduce the base price of cars in Vietnam. In a mid-June announcement, the company revealed plans to distribute the Nano S05 EV, a product of the SAIC-GM-Wuling joint venture, in Quarter IV.

Bui Van Huu, Chairman of the Board of Directors of TMT Motors, stated that the Nano S05 EV's price will only slightly exceed that of high-end scooters in the Vietnamese market. Honda's most expensive scooter, the SH 350i, is priced between 151.19 and 152.59 million VND.

The Chinese Nano S05 measures 2,400 mm in length, 1,380 mm in width, and 1,580 mm in height. This is slightly longer than the Honda SH 350i scooter, which measures 2,160 x 743 x 1,161 mm.

Following the Mini EV's debut, the Vietnamese market welcomed another sub-300 million VND car – the VinFast VF 3. At its launch in May 2024, the VF 3 was priced at 240 million VND (with battery rental) and 322 million VND (with battery purchase). Subsequently, VinFast discontinued the battery rental option and lowered the price of the car with the battery included to 299 million VND in 3/2025.

A customer examines the VF 3 at its launch event in Ho Chi Minh City in May 2024. Photo: Thanh Nhan

A customer examines the VF 3 at its launch event in Ho Chi Minh City in May 2024. Photo: Thanh Nhan

The VF 3 surpasses the Mini EV in size and motor performance, reflected in its slightly higher price. However, thanks to its extensive charging network, robust sales policies, and substantial marketing investments, the VF 3 has become VinFast's flagship model and currently leads the Vietnamese market in sales. According to company data, VinFast sold nearly 22,900 VF 3 units in the first half of 2025, a record-breaking figure for any car sold in Vietnam within a six-month period.

The VF 3 will soon relinquish its title as VinFast's most affordable model with the planned August launch of the Minio Green, priced at 269 million VND. All VinFast vehicles are domestically produced.

Industry experts highlight the advantages of these budget-friendly electric cars, including their compact size, suitability for urban driving, innovative designs, and low operating costs. These factors are increasingly attracting customers, potentially displacing the traditional A-segment hatchback.

While Wuling does not disclose sales figures, VinFast's sales, particularly for the VF 3 and the larger VF 5 (A+), are experiencing significant growth. Conversely, the market share of traditional gasoline-powered A-segment hatchbacks is steadily declining in Vietnam.

Thanh Nhan