Hyundai and Kia, once strong contenders in the Vietnamese automotive market, are now facing significant sales declines for their key models. The popularity of Korean cars, which thrived on sedans and compact vehicles, is waning due to shifts in consumer preferences, increased competition, and the rise of electrification.
According to local media outlet VietnamNet on August 24, Hyundai and Kia gained traction in Vietnam with appealing designs, extensive features, and competitive pricing. However, recent data shows a sharp drop in sales for several flagship models. The Hyundai Accent, Santa Fe, Grand i10, and Kia K3, which previously led sales, have all experienced notable declines since 2022.
The downturn is evident in Hyundai's sales figures. In 2022, the Hyundai Accent sold 22,645 units, ranking among the top sedans in the market. That same year, the Creta sold 12,096 units, the Santa Fe 10,603 units, and the Tucson 8,438 units.
However, the sales trajectory changed rapidly. By 2025, Accent sales plummeted to 7,088 units, a nearly 70% decrease from 2022. The Santa Fe also saw a dramatic drop, falling from over 10,600 units to around 2,600, a decline of about 75%. The Grand i10's sales fell to approximately 3,358 units, about one-third of its sales three years prior.
In 2026, the recovery of these once-popular models remains limited. From January to July, the Accent sold 2,290 units, the Grand i10 1,381 units, and the Santa Fe 1,179 units. If the current sales trend continues, these models may face another challenging year.
In contrast, sales of SUVs and crossovers have remained relatively strong. From January to July 2026, the Hyundai Creta sold 5,391 units, and the Tucson 5,105 units. This indicates a shift in Vietnamese consumer interest toward compact SUVs and crossovers priced below 1 billion VND (approximately $42,000).
Kia is experiencing similar challenges. The K3, which sold 11,404 units in 2022, saw its sales drop to 3,205 units the following year. In 2026, K3 sales were not reported separately and were combined with the Morning and Soluto models, totaling just 931 units from January to July.
While the Seltos remains a stronghold in Kia's lineup, its sales also declined from 12,398 units in 2022 to 6,577 units in 2025. In the first seven months of 2026, Seltos sales reached 5,271 units. Although the sales volume is stable, it is far from the explosive growth seen at its launch.
The decline of the Kia K3 reflects a broader stagnation in the sedan market. This trend has affected not only the K3 but also competitors like the Mazda3, Honda Civic, Hyundai Elantra, and Toyota Corolla Altis. The Seltos faces challenges in a compact SUV and crossover market with over 20 competing models, making it harder to secure sales as easily as before.
The weakening competitiveness of Korean cars is linked to changes in the market environment. Hyundai and Kia have differentiated themselves from Japanese brands with youthful designs, large displays, sunroofs, power seats, and 360-degree cameras. Unlike Japanese cars, which are often viewed as practical, Korean vehicles have been seen as more stylish and feature-rich.
However, the competitive landscape in Vietnam's automotive market has shifted significantly over the past five years. Toyota has consistently improved its offerings and expanded its SUV lineup while leading in fuel-efficient hybrid models. Other brands, including Honda, Mitsubishi, Mazda, Subaru, Suzuki, and Nissan, have also actively engaged in design and technology competition.
Additionally, Ford maintains strong demand in the SUV and pickup segments with models like the Ranger, Everest, and Territory. The entry of European and Chinese brands has also increased, and the growth of electric vehicles led by VinFast has broadened consumer choices significantly.
Consumer criteria have evolved as well. Vietnamese buyers now consider not only design and features but also fuel efficiency, resale value, durability, maintenance costs, and the trend toward electrification. This shift has made it challenging for Hyundai and Kia to maintain sales based solely on past success.
Hyundai and Kia are now seeking a turnaround by focusing on SUVs and hybrids. Hyundai has added hybrid versions of the Santa Fe, Tucson, and Palisade to its lineup, while Kia has expanded its offerings with hybrid and plug-in hybrid models of the Sportage and Sorento.
Although the past popularity of Hyundai and Kia's sedan models has diminished, there is optimism that their SUV and hybrid lineups could regain competitiveness if they align with market trends.
* This article has been translated by AI.
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