Products that once dominated the segment such as Ford EcoSport or Hyundai Kona are gradually being retired. The urban SUV segment is facing many changes in terms of modernity and utility, as well as competitive price.

The once-dominant models are gradually retiring

Ford EcoSport, the first model of the urban SUV segment in Vietnam, has been announced to stop production and sales. Ford Vietnam had confirmed the news for our domestic markets. The reason given is that Ford Motor Corporation is restructuring its development in India – one of Ford’s largest markets, including changes in plans of vehicle assembly plants and manufacturing components. Consequently, member markets have to adjust production plans and EcoSport is the earliest affected model. Ford Vietnam affirms that it still guarantees warranty, maintenance, repair, or spare parts supplement for EcoSport models. Although, authorized dealers of Ford Vietnam have announced that they would no longer accept orders for this model.

The reason for stopping production and sales of Ford EcoSport was an objective one. However, developments in the automotive market show that Ford EcoSport is gradually losing its position in the competition with rivals. Sales of Ford EcoSport are plummeting, in the whole year of 2021, only 1,490 EcoSport cars were sold. And most recently, in January 2022, only 87 EcoSport cars were delivered to customers, a very modest number compared to competitors.

This model entered the Vietnamese market over 6 years ago and it can be said that EcoSport gave birth to the urban SUV segment. EcoSport monopolized the segment until 2018. At which point, Hyundai Kona came out. Ford EcoSport and Hyundai Kona were veteran models in the segment. Not only EcoSport, recently, there has been information that Hyundai Kona is also about to retire in Vietnam, although the manufacturer has not confirmed that information. Hyundai Kona was once the best-selling urban SUV in 2020, but sales have fallen by 35% in 2021.

Around the world, Ford EcoSport has also been discontinued in many other markets. It is known that Ford plans to replace EcoSport with another model, rumored to be Ford Territory, and will be available in Vietnam mid-2022.

Various new competitors in the urban SUV segment

Not only are Ford EcoSport and Hyundai Kona facing many challenges in the market, but sales of other urban SUVs have also declined. Honda HR-V sales decreased by 551 units to 1,161 units. In January 2022, models such as EcoSport, Hyundai Kona, Honda HR-V, CX-3, CX-30 continues to be the least sold models. The sales gap is quite large compared to models of other segments.

The fact that models like Ford EcoSport or Hyundai Kona stops selling on the market also shows strong changes in the urban SUV segment. In the past two years, a series of new cars have been introduced, imposing many challenges for veteran models that once dominated markets. In 2021, the newly launched Toyota Corolla Cross, Kia Seltos have continuously been on the monthly list of best-sellers. Urban SUV sales in 2021 mainly belong to Toyota Corolla Cross and Kia Seltos with more than 34,000 units sold.

In addition, new options and many modern equipment such as MG ZS, Peugeot 2008 also bring fresh takes to the urban SUV market in Vietnam.

New models such as Toyota Corolla Cross, Kia Seltos are having many competitive advantages in terms of price, design, usable space, technological comfort, safety features or power and engines. Toyota Raize, Kia Sonet – newly launched A-class SUVs – also help individual users and small families to have more choices. The launch of Kia Sonet and Toyota Raize have also brought customers many new options. These two models are often in short supply.

The decision to stop selling models like Ford EcoSport or Hyundai Kona shows a change in the urban SUV segment. The old models with simple designs and features are gradually being replaced by new generations with modern design and technology.

Source: autopro.com.vn