Toyota holds the strongest brand health in Vietnam

DNHN - Toyota possesses the strongest brand health in the automotive industry in Vietnam, according to the 2024 Automotive Brand Rankings recently released by Decision Lab.

The Consumer Sentiment Index for July 2024 by Decision Lab shows a significant decline in Vietnamese consumer spending, particularly in the automotive sector. Spending on this category has dropped by approximately 18% compared to the same period last year. This poses a major challenge for car manufacturers in Vietnam in the coming period. To address this situation, companies must reassess brand health and adjust their business strategies accordingly.

Decision Lab, the exclusive partner of YouGov in Vietnam, has also released the 2024 Automotive Brand Ranking. The ranking utilizes the Index score, which is the average of six criteria: Overall Impression, Quality, Value, Corporate Reputation, Customer Satisfaction, and Recommendation. This ranking provides a comprehensive view of the health of automotive brands over the past year.

Toyota continues to lead with an Index score of 19.5. Following closely are Mercedes-Benz with 19.1 and Honda with 19.0. BMW and VinFast complete the Top 5 with scores of 18.9 and 17.4, respectively.

When examining the Index scores, a clear disparity is evident between the top brands and those ranked lower. This difference indicates that the leading brands have built a stronger brand performance, possibly due to factors such as high product quality, customer satisfaction, and overall brand reputation in the market.

VinFast stands out with particularly impressive performance. Despite having a relatively short operational history, the Vietnamese automaker has surpassed many long-established international competitors. Not only has VinFast improved its Index score during this period, but it has also risen to the top position in the Northern region. This success can largely be attributed to VinFast's smart marketing strategy and its ability to capture the growing demand for eco-friendly vehicles. Additionally, VinFast’s expansion into the ride-hailing market has proven to be a strategic move, contributing to the brand's strength and enhancing its market presence.

In the regional rankings, Mercedes-Benz and Toyota demonstrate widespread appeal, consistently maintaining Top 3 positions across all regions. BMW and Honda also recorded impressive achievements, maintaining their status as popular brands in the Northern, Central, and Southern markets. This indicates these brands' ability to cater to the diverse preferences and needs of consumers in each distinct market.

Thue Quist Thomasen, CEO of Decision Lab, commented: "This year's automotive brand ranking is relatively stable, with little significant change in the positions of major brands. However, as Vietnamese consumers tighten their spending and reduce purchases, especially in the automotive sector, manufacturers will face new challenges. In response to these shifts in consumer behavior, brands need to proactively adapt and adjust their strategies to navigate the changing market landscape."

Anh Nguyen