10 October 2023
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The automobile industry is evolving globally, with advancing technologies and a shift towards sustainability driving the change.
Automobiles can be classified by utility into two main categories: Passenger Cars (PCs) and Light Commercial Vehicles (LCVs). PCs are motor vehicles with at least four wheels, designed for the transportation of passengers, and typically equipped with no more than eight seats in addition to the driver’s seat. LCVs are also motor vehicles with at least four wheels, used primarily for the transportation of goods. The weight capacity typically ranges from 3.5 to 7 tons, depending on local and professional definitions.
Automobiles can also be categorised by engine type, which includes Internal Combustion Engines (ICE) and Electric Vehicles (EVs). Further, they can also be differentiated by product value, falling into the categories of standard and luxury vehicles.
Classification of Automobiles
Additionally, Sports Utility Vehicles (SUVs) which combine elements of road passenger cars and off-road vehicles, are categorised as either PCs or LCVs depending on the regulations of each country. SUVs have emerged as the most profitable segment and have seen the highest sales growth among PCs in recent years.
Germany has consistently ranked the title of the world's largest automobile exporter. Meanwhile, the US remains at the forefront in terms of the global automobile import value. Both the US and Germany have been prominent players in the global automobile trade.
China boasts the world's largest middle-income population, creating a robust demand base for Chinese auto manufacturers. The government's protective measures against foreign monopolisation have further bolstered industry growth, making them leaders in the global PC market. In 2022, India outpaced Japan and the US to secure the world's second-largest position in PC sales by volume, driven by the easing of supply chain disruptions, a surge in demand for SUVs, and the introduction of new products.
The US has maintained the leading position in LCV production due to the popularity of pickup trucks. These vehicles offer off-roading options and serve as both a car and a truck, providing ample cargo space.
The global automotive industry’s top six players: Volkswagen, Toyota, Mercedes, Ford, General Motors (GM), and Honda accounted for around 42% of the market in 2022 in terms of units sold (including Heavy Commercial Vehicles). The industry exhibits low concentration, with players competing based on pricing, multiple brands catering to different customer segments, and intense R&D expenditure to satisfy Connected, Autonomous, Shared and Services, and Electrification (CASE) trends.
Snapshot of Major Industry Players, 2022
Source: Compiled by Uzabase based on company filings
Toyota and Volkswagen were the market leaders in terms of units sold, with GM following closely. In revenue, Volkswagen held the top position, trailed by Toyota. While most major players generate their revenue from overseas markets, Ford and GM concentrate primarily on their domestic markets. Most players emphasise passenger cars, but Ford distinguishes itself by prioritising the production of heavy and medium trucks for its domestic market.
Additionally, there is a noticeable industry-wide shift towards the production of electric and autonomous vehicles to align with the evolving CASE trends.
(Source: Automobiles Industry Overview - SPEEDA Industry Report - World)
This article provides an overview of the Vietnamese automobile industry, with a particular focus on market trends and competitive trends.
Report Overview: Automobile Industry in Vietnam
Industry Overview
