Why is the 2015 Honda City so popular in Vietnam?

With over 600 orders placed for the 2015 Honda City in just about two weeks after its launch and more than 430 vehicles delivered to customers in the first month – these impressive figures show that this Japanese compact car is creating a sensation among Vietnamese consumers.

More convenient

Determined to reclaim second place in the fiercely competitive B-segment sedan market, Honda has equipped its upgraded version – the 2015 City – with a host of new features to both address shortcomings in the previous version and enhance user convenience.

The car's exterior remains largely unchanged, and only when driving do you notice some new features such as power-folding mirrors, door handles, a smart key system, and a trunk release button on the trunk lid.

Meanwhile, a noticeable new feature in the interior is the push-button start system with smart key. In today's fast-paced urban life, drivers don't always have their hands free to unlock their car, especially when shopping or carrying bulky items. The smart key system on the 2015 City frees up the driver's hands when outside the car, allowing them to simply approach and press the unlock button on the door handle without having to take the key out of their pocket or bag.

Honda City retains its original design.

One potential inconsistency that could be added to the 2015 City is that typically, this push-button start system comes with a power-adjustable driver's seat that automatically retracts when the engine is turned off, making it easier for the driver to exit the vehicle, and retracts to the same position when the car is started. It's also possible that this is a deliberate design choice by the manufacturer, retaining the cloth seat and 4-way manual adjustment for the driver's seat to maintain the car's sporty feel while focusing more on performance and safety without increasing the price.

On the steering wheel, in addition to the paddle shifters and hands-free calling integrated in the previous version, the 2015 City also features audio controls, increasing convenience and safety when the driver wants to adjust the entertainment system while driving.

In particular, in addition to the smart key continuing to integrate a remote trunk release button, the addition of a separate release button on the trunk lid underneath has addressed a shortcoming of the previous version.

The City's interior strengths are maintained in the new version, including class-leading spaciousness, rear seat air vents; ECON mode for improved fuel efficiency; and the largest trunk in its segment.

The interior is spacious and includes some new amenities.

Safer

In fact, what impressed us most was the safety system on the 2015 City – a system that, according to Honda's technical staff, cannot be "upgraded" like many other convenience features. Specifically, the 2015 City has two additional active safety systems usually only found on mid-size and larger vehicles: Vehicle Stability Assist (VSA) and Hill Start Assist (HSA).

These new safety features make a significant difference when driving the 2015 City, even though the previous version was already highly rated for its driving feel, and the CVT transmission is not common in the B-segment. Still featuring the superior 1.5-liter DOHC engine, delivering a maximum power of 118 horsepower at 6,600 rpm and a torque of 145 Nm at 4,600 rpm, the 2015 City CVT version gave us a greater sense of safety.

Even sharp turns and tight corners at speeds up to 50-60 km/h don't cause the rear of the car to skid – something impossible in the previous version without the VSA system. The "creaking" sounds when cornering or zigzagging signal to occupants that the VSA system is activated. It's worth remembering that the inclusion of the VSA system is what earned the 2015 City a 5-star safety rating from ASEAN-NCAP, a leading Asian safety rating organization, while models without VSA only achieved 4 stars. This provides peace of mind not only for new drivers but also for experienced drivers.

While drivers can experience the functionality of VSA (Vehicle Stabilization) in everyday city driving, the Hill Start Assist (HSA) system is only truly appreciated in challenging terrain conditions. If, for any reason, the vehicle has to temporarily stop on a slope, HSA prevents it from rolling back, giving the driver enough time to switch from the brake pedal to the accelerator to increase power when needed to continue moving.

In addition, the 2015 City also features power-folding rearview mirrors, allowing the car to easily maneuver in difficult traffic conditions by temporarily folding the mirrors to avoid other vehicles or enter tight spaces. The seatbelt warning feature for the front passenger seat also enhances safety and educates occupants about proper seatbelt awareness…

Remember, the Japanese model's strengths in durability and fuel efficiency remain. According to the manufacturer's test conditions, the average fuel consumption for both versions is only 5.8 liters/100 km on mixed roads. This figure is quite close to real-world driving conditions, as we ourselves had the opportunity to test drive over 200 km under various terrain conditions. Even experienced drivers often achieve fuel consumption levels of around 5 liters/100 km during their daily commutes.

Unexpected price

It's safe to say that the 2015 City's price has surprised many compared to its predecessor, especially given the pressure from the rising USD exchange rate. Specifically, despite the addition of numerous amenities and safety features, the manual transmission version of the 2015 City remains priced at 552 million VND, while the CVT automatic version only increased by 5 million VND to 604 million VND. It's worth noting that its biggest competitor, the Toyota Vios automatic version, saw a price increase of 25 million VND to 649 million VND, solely due to the upward adjustment of the USD exchange rate.

Explaining the move to increase a range of amenities and safety features while keeping prices attractive, Mr. Ho Manh Tuan, Deputy General Director of Honda Vietnam, said that the company aims for a long-term operational strategy, always seeking to increase value for users. In the specific case of the 2015 City, the company has spread its exchange rate risk over a long period and continued to cut costs, thus not facing the same price pressure as other car brands, especially imported vehicles.

Sales skyrocketed.

The arrival of the 4th generation City has made this model a stronger force in the B-segment sedan market and currently holds the number one position in the segment in a number of major automotive markets in the Asian region such as India (46% market share), Malaysia (37% market share), Indonesia (54% market share)...

In Vietnam, after one year since its launch, the 4th generation City has been quite successful, with sales exceeding 3,000 units by the end of September 2015 and consistently ranking among the best-selling small sedans in the B-segment. In particular, initial market reactions are showing very positive signs for the 2015 City. In just over two weeks, up to September 16th, there were more than 600 orders. According to VAMA statistics, Honda delivered 435 2015 City vehicles to customers in September, firmly securing second place in the segment, not including hundreds of orders awaiting delivery.

Conclude:

The new City might not appeal to those with strong personalities or who prioritize aesthetics, due to its neutral and unremarkable exterior design. However, thanks to the addition of many features while maintaining the same price (for the manual transmission version) or slightly increasing it (for the CVT version), the 2015 City offers significant added value and becomes a worthwhile option in the B-segment sedan market, or for those looking for a fuel-efficient and safe car in the 600 million VND price range.

According to VnMedia