VIETNAM AUTOMOTIVE AFTERMARKET MARKET

Vietnam Automotive Aftermarket Market is estimated to add over USD 1 billion of revenues between 2024 to 2031, growing at a robust CAGR till 2031. Vietnam Automotive Aftermarket Market present significant opportunities, with over millions of passenger vehicles are currently out of warranty in 2023, and the passenger cars with an out of warranty population is projected to grow at a robust CAGR till 2031 is forecast to drive the demand for aftermarket.

Vietnam Automotive Aftermarket Market Overview

Vietnam automotive industry has been growing rapidly in past years driven by the increasing domestic demand, rising purchasing power of consumers and government initiatives for development of automotive industry. The government took various initiatives to support this industry, introduced policies such as encourage investment in infrastructure, tax incentives for domestic production and imposed imported tariffs on international vehicles. The automotive industry is Vietnam is dominated by the international automakers such as Honda, Ford, Toyota and Mitsubishi which captured largest share in the market. The Vietnam government encouraged R&D activities by providing funds, skill development and promote innovation in the automotive sector. Due to these initiatives, local players such as VinFast and Thaco has been gaining traction in the domestic market. The government further planned to become regional hub for automobile production and exports and to increase domestic production to 60% by 2025.

Major Vietnam Automotive Aftermarket Market Drivers

Vietnam automotive aftermarket industry is driven by the expansion of the auto parts industry, increased demand for replacement parts and improvement in the localization rates of the vehicles. In 2020, the Vietnamese government lowered 50% registration fees for domestic production and zero import tax rates for raw materials, supplies and components which can’t be produced domestically. Through this initiatives, the domestic auto industry and automobile consumption will increase and imports cars has to reduce their profits, which will promote the Vietnam auto parts industry in aftermarket. For instance, THACO collaborated with the BMW to domestic produce BMW vehicles across the Asian country.

The automotive aftermarket continues to expand in Vietnam due to the increasing number of vehicles on roads, growing demand for maintenance and repair services, and favorable government initiatives to promote overall automotive industry. Furthermore, increasing sales of commercial and passenger vehicles will propel the Vietnam automotive aftermarket. As per the Vietnam Automobile Manufacturers Association, 14,483 passenger vehicles and 6,096 commercial vehicles were sold in 2023.

Segments covered in the Report:

The Vietnam Automotive Aftermarket has been segmented on the basis of vehicle type, certification, replacement part. Based on the vehicle type, the market has been segmented into commercial vehicles and passenger vehicles. By replacement parts, the market is segmented into tire, battery, brake parts, filters, Lighting Components, Electronic components, Lubricants, Clutch Parts, Engine Components and others. Based on certification, the market has been segmented into Genuine Parts, Certified Parts, Counterfeit Parts, Others.

Market Segmentation

Vietnam Automotive Aftermarket by Vehicle Type

• • Commercial Vehicles
  • Passenger Vehicles

Vietnam Automotive Aftermarket by Replacement Parts

• • Tire
  • Battery
  • Brake Parts
  • Filters
    • Air Filter​
    • Oil Filter​
    • Others​
  • Lighting Components​
  • Electronic components​
  • Lubricants​
  • Clutch Parts​
  • Engine Components
    • Timing Belt​
    • Spark Plugs​
    • Others​
  • Others

Vietnam Automotive Aftermarket by Certification

• • Genuine Parts
  • Certified Parts
  • Counterfeit Parts
  • Others