Forecast Period | 2026-2030 |
Market Size
(2024) | USD 28.1
Million |
CAGR (2025-2030) | 5.09% |
Fastest Growing
Segment | Replacement |
Largest Market | Southern Vietnam |
Market Size (2030) | USD 35.3
Million |
Market
Overvrew
Vietnam Automotive Handbrake & Clutch Cable Market was valued at
USD 28.1 Million in 2024 and is expected to reach USD 35.3 Million by 2030 with
a CAGR of 5.09% during the forecast period. The Vietnam automotive
handbrake and clutch cable market is expected to witness steady growth due to
increasing vehicle production and the rising need for vehicle safety features.
The demand for handbrake and clutch cables is primarily driven by the growing
automotive industry, as vehicle manufacturers are focusing on enhancing vehicle
safety features. In 2024, Vietnam's automobile market saw a significant rebound, with total sales reaching approximately 494,000 vehicles, marking a 22% year-on-year increase. This growth was driven by a surge in sales during the fourth quarter, attributed to government incentives and promotional activities by manufacturers. Notably, electric vehicle (EV) sales, particularly from domestic manufacturer VinFast, contributed to this upward trend. Consumers are becoming more conscious of safety standards,
thus creating a favorable environment for automotive cable producers. Alongside
safety, vehicle customization is also contributing to the demand for
specialized cables.
Technology advancements in the automotive cable manufacturing process
are playing a significant role in shaping the market. New materials, such as
lightweight alloys and enhanced coatings, are improving the durability and
efficiency of handbrake and clutch cables. This innovation is aligning with the
automotive industry's shift towards more fuel-efficient and eco-friendly
vehicles. Furthermore, increasing government regulations regarding vehicle
safety and emissions are prompting automakers to invest in high-quality
components, boosting the demand for automotive cables. However, the market is
not without its challenges. One of the primary hurdles is the high cost of
advanced materials and manufacturing processes. Additionally, the fluctuating
costs of raw materials and supply chain disruptions can lead to delays and affect
market stability. Despite these challenges, opportunities for growth remain
abundant, especially as the market for electric vehicles (EVs) expands, which
requires specific components like high-performance cables. By addressing these
challenges and leveraging emerging trends, the automotive handbrake and clutch
cable market in Vietnam is poised for growth during the forecast period.
Market
Drivers
Increasing Vehicle Production
The growing automotive industry in Vietnam is a key driver of the
handbrake and clutch cable market. As the vehicle production rate increases,
particularly with the demand for passenger cars and light commercial vehicles,
more automotive components, including cables, are required to meet this demand.
More vehicles on the road lead to a higher need for quality cables to ensure
safety, as cables play a vital role in essential functions like braking and
clutching. This increased production, driven by a rising middle class and
economic growth, naturally boosts the demand for vehicle components. In 2024, Vietnam's automobile market saw a significant rebound, with total sales reaching approximately 494,000 vehicles, marking a 22% year-on-year increase. Vietnam's domestic car production experienced a substantial growth of 27% in 2024, totaling 388,500 units. This surge was partly due to a temporary 50% reduction in registration fees for locally assembled vehicles, which spurred production and sales during the incentive period from September to November.
Growing Consumer Demand for Safety Features
The importance of vehicle safety is being emphasized more than ever,
with consumers becoming more conscious of the safety features in their
vehicles. Handbrake and clutch cables are crucial elements in ensuring that
vehicles function optimally, particularly in preventing accidents. As
manufacturers strive to meet safety standards and satisfy consumer
expectations, the demand for these automotive cables continues to rise. With
consumers willing to invest in vehicles equipped with advanced safety systems,
the market for handbrake and clutch cables is expected to grow significantly.
Technological Advancements in Cable Materials
As the automotive industry moves toward more sustainable and efficient
designs, the demand for innovative materials in cables is increasing. Handbrake
and clutch cables are being designed with advanced materials that are lighter,
more durable, and resistant to corrosion. These technological advancements lead
to cables that offer better performance and a longer lifespan. The shift
towards high-performance materials is pushing manufacturers to innovate, making
cables more efficient, which in turn stimulates growth in the market.
Regulatory Pressure on Vehicle Safety Standards
Stringent government regulations regarding vehicle safety and emissions
are playing a significant role in driving the demand for high-quality
automotive components, including cables. Governments worldwide, including
Vietnam, are increasingly focusing on enforcing regulations that require
vehicles to be equipped with advanced safety features. As part of this push,
the use of reliable and durable handbrake and clutch cables becomes critical.
Vehicle manufacturers must comply with these regulations, further contributing
to the growing demand for automotive cables.
Growth of the Electric Vehicle Market
The rising popularity of electric vehicles (EVs) is a significant driver
for the market. EVs require specialized components, including high-performance
cables, to ensure proper functioning. As more EVs are being introduced to the
Vietnamese market, the need for high-quality handbrake and clutch cables grows.
These vehicles, often designed with advanced features and systems, require
cables that can handle the unique demands of electric drivetrains, regenerative
braking, and other technologies.
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Key
Market Challenges
High Manufacturing Costs
One of the main challenges facing the automotive cable market is the
high cost of production. The development of advanced materials, such as
corrosion-resistant alloys and high-strength polymers, adds to manufacturing
expenses. As automakers continue to demand better performance from automotive
cables, manufacturers must invest in expensive raw materials and more complex
production processes, which can drive up the final price of cables. This cost
burden can impact market affordability, particularly for budget-conscious
consumers.
Fluctuating Raw Material Prices
The prices of raw materials such as steel, copper, and rubber, which are
essential in the production of automotive cables, tend to fluctuate
significantly. These price fluctuations can destabilize the manufacturing
process, affecting the profitability and pricing strategies of automotive cable
manufacturers. The volatility of raw material costs is a persistent challenge,
as manufacturers need to constantly adjust to market changes, making it
difficult to predict future expenses and maintain steady supply chains.
Supply Chain Disruptions
Global supply chains are often subject to disruptions due to various
factors, such as political instability, natural disasters, and logistical
challenges. For the automotive cable market, any disruptions in the supply
chain for critical components such as copper or plastic compounds can delay
production and delivery, leading to increased costs. Manufacturers must find
ways to manage these risks to ensure a smooth and reliable supply of materials
and components. This challenge can create uncertainty and hinder the market's
growth.
Competition from Low-Cost Imports
The market for automotive components is highly competitive, with many
manufacturers competing for a share. One of the challenges faced by domestic
manufacturers in Vietnam is the influx of low-cost imported cables from
countries with less stringent manufacturing regulations or lower labor costs.
These cheaper imports can put pressure on local manufacturers to reduce prices,
which may affect their profitability. Competing on cost alone can be difficult,
especially when balancing quality control and compliance with safety standards.
Technological Adaptation Challenges
As the demand for more advanced vehicle systems rises, automotive cable
manufacturers must continuously adapt to new technologies and innovations.
While some companies may have the resources and expertise to keep up with these
rapid advancements, others struggle to integrate new technologies into their
manufacturing processes. The need for cables that can support electric
vehicles, hybrid systems, and other next-generation technologies requires
significant investment in research and development. Smaller players in the
market may find it difficult to compete, limiting their ability to innovate.
Key
Market Trends
Shift Toward Lightweight Cables
The automotive industry is increasingly focusing on weight reduction to
improve fuel efficiency and vehicle performance. As part of this trend, there
is a growing demand for lightweight handbrake and clutch cables. Manufacturers
are investing in materials and manufacturing techniques that reduce the overall
weight of the cables without compromising strength or durability. This shift
toward lightweight solutions is expected to gain momentum as automakers focus
on enhancing the performance and environmental sustainability of their
vehicles.
Customization of Cable Solutions
With the increasing trend toward vehicle personalization and
specialization, there is a rise in demand for customized automotive cables.
Automakers are looking for cables tailored to the unique needs of their
vehicles, especially in the case of high-performance models or electric
vehicles. As vehicle designs become more diverse, there is a growing trend
toward offering customized cable solutions that fit specific safety features,
performance capabilities, or aesthetic preferences. This trend is helping to
create new opportunities for cable manufacturers to cater to a wider range of
vehicle types.
Focus on Sustainability
Sustainability is becoming an essential factor in the automotive
industry. Manufacturers are adopting environmentally friendly production
methods and materials to reduce the ecological footprint of their products. For
automotive cables, this means using recycled materials, reducing energy
consumption during manufacturing, and finding ways to improve the recyclability
of cables at the end of their lifecycle. This push toward sustainability is
expected to be a long-term trend, as automakers and consumers alike demand
greener alternatives.
Integration of Smart Technologies
As the automotive industry continues to embrace advanced technologies,
the integration of smart systems in vehicles is becoming more common. This
includes the development of cables designed to support systems like autonomous
driving, advanced braking systems, and connected vehicle technologies. These
innovations require highly sophisticated cables that can support data
transmission, power management, and other functions. The trend of integrating
smart technologies into vehicles is increasing the demand for specialized
cables that offer advanced performance capabilities.
Growing Adoption of Electric Vehicles (EVs)
The rise of electric vehicles is one of the most significant trends in
the automotive sector. EVs require cables that can handle higher voltage and
specific functionalities, such as regenerative braking systems. As the adoption
of electric vehicles increases in Vietnam, there is a growing demand for
specialized handbrake and clutch cables designed to meet the unique needs of
these vehicles. Manufacturers are innovating to create cables that can support
EV technologies, helping to propel this market trend forward. VinFast, Vietnam's homegrown electric vehicle manufacturer, became the top-selling brand in the country in 2024, delivering over 87,000 vehicles, including popular models like the VF3 and VF5. This performance marked a significant milestone for the company, reflecting the growing consumer preference for electric vehicles and VinFast's expanding market presence
Segmental Insights
Vehicle
Type Insights
The automotive handbrake and clutch cable market in Vietnam is segmented
by vehicle type, which includes two-wheelers, passenger cars, light commercial
vehicles (LCVs), and medium & heavy commercial vehicles (M&HCVs). Each
of these segments plays an important role in shaping the overall demand for
automotive cables. Two-wheelers, including motorcycles and scooters, represent
a significant portion of the market, especially in Vietnam, where motorcycles
are a common mode of transport due to their affordability and convenience.
While the demand for handbrake and clutch cables in this segment may not be as
high as in other vehicle types, the sheer volume of two-wheelers on the road
drives the market for these cables.
Passenger cars are another key segment, as these vehicles require robust
and reliable cables for safety and performance. With a rising middle class and
increasing urbanization, the demand for passenger vehicles has been steadily
growing, which in turn drives the need for high-quality automotive cables. As
passenger car manufacturers focus on enhancing safety features, the demand for
handbrake and clutch cables is expected to increase. Light commercial vehicles
(LCVs), which include small trucks, vans, and utility vehicles, are often used
in industries like logistics and transportation. These vehicles require durable
and dependable handbrake and clutch cables for effective performance in
commercial settings. The steady demand for LCVs in Vietnam supports the market
for these cables, as these vehicles are used in both urban and rural
environments. The medium and heavy commercial vehicle (M&HCV) segment
includes larger trucks and buses that require heavy-duty cables for safety and
functionality. This segment plays a crucial role in the logistics and transport
sectors. The demand for these vehicles is closely tied to industrial and
infrastructure development, making it a key market for handbrake and clutch
cables. Manufacturers of M&HCVs must ensure that the cables they use meet
stringent safety standards, further driving the need for high-quality cables in
this sector.
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Regional
Insights
In 2024, Southern Vietnam was expected to dominate the automotive
handbrake and clutch cable market. This region, which includes key cities like
Ho Chi Minh City, is the industrial and economic hub of the country. The
southern region is home to a large number of vehicle manufacturers, both
domestic and international, contributing to the higher production of vehicles
and automotive components. With the growth of the automotive industry in
Southern Vietnam, the demand for automotive components such as handbrake and
clutch cables is significant. The region's strong manufacturing base, along
with the expansion of the automotive sector, ensures a steady supply of cables
required for both local production and exports. The presence of numerous
automotive suppliers and manufacturers, coupled with a rapidly growing consumer
base, supports the dominance of this region in the automotive cable market. In
addition, Southern Vietnam's advanced infrastructure and connectivity make it a
key player in the overall automotive supply chain. The region's automotive
manufacturing plants are well-equipped to meet the increasing demand for
vehicle parts, including automotive cables, ensuring a steady flow of
high-quality products to the market. This infrastructure development has positioned
Southern Vietnam as the leading region in the country's automotive cable
market.
Recent
Developments
- In September 2023, GL Cables announced a strategic partnership with
Panasonic Vietnam to diversify their product offerings and enhance market
development. GL Cables, established in 2008, specializes in high-tech cable
products such as control cables, signal cables, fireproof cables, audio cables,
and cables for robotic systems. This collaboration aims to produce cables
tailored for the electric vehicle and automobile industries, aligning with the
growing demand for advanced automotive components in Vietnam.
- In July 2024, Daphaco showcased its LION Electric Cable brand at the
Vietnam ETE & Enertec Expo 2024 in Ho Chi Minh City. The company introduced
a new product line—VCm flexible single-wire RoHS cables—designed to be safe,
environmentally friendly, and compliant with energy-saving standards. This
participation underscores Daphaco's commitment to innovation and its role in
the evolving automotive cable market in Vietnam.
- In December 2024, Vietnam's cable and wire production experienced a
15.39% year-on-year growth, reflecting the sector's robust performance. This
growth is attributed to increasing global demand for high-quality cables and
wires, particularly in renewable energy and telecommunications projects. The
country's competitive production capabilities and strategic market positioning
have supported this expansion, highlighting the importance of the automotive
cable sector within Vietnam's broader industrial landscape.
Key
Market Players
- Sumiden Vietnam Automotive Wire
Co., Ltd.
- Sai Gon Mechanical Engineering
Corporation (SAMCO)
- Vietnam Electric Cable
Corporation (CADIVI)
- DAPHACO Electric Cable
Corporation
- Tai Truong Thanh Manufacturing –
Trading Electric Wires and Cables Co., Ltd.
- Korea Electrical Equipment Joint
Stock Company (SUNWON)
- Tai Sin Electric Cables (VN)
Co., Ltd.
- Myungbo Vina Co., Ltd.
- I Sheng Electric Wire &
Cable (Vietnam)
- Truong Hai Group Corporation
(THACO)
|
By Vehicle
Type
|
By Product
Type
|
By Sales
Channel
|
By
Region
|
- Two Wheeler
- Passenger Car
- LCV
- M&HCV
|
- Handbrake Cable
- Clutch Cable
|
|
- North Vietnam
- Central Vietnam
- South Vietnam
|
Report
Scope:
In this
report, the Vietnam Automotive Handbrake & Clutch Cable Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- Vietnam Automotive Handbrake & Clutch Cable
Market, By Vehicle Type:
o
Two Wheeler
o
Passenger Car
o
LCV
o
M&HCV
- Vietnam Automotive Handbrake & Clutch Cable
Market, By Product Type:
o
Handbrake Cable
o
Clutch Cable
- Vietnam Automotive Handbrake & Clutch Cable
Market, By Sales Channel:
o
OEM
o
Replacement
- Vietnam Automotive Handbrake & Clutch Cable
Market, By Region:
o
North Vietnam
o
Central Vietnam
o
South Vietnam
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the Vietnam Automotive Handbrake
& Clutch Cable Market.
Available
Customizations:
Vietnam Automotive
Handbrake & Clutch Cable Market report with the given market data,
TechSci Research offers customizations according to the company’s specific
needs. The following customization options are available for the report:
Company
Information
- Detailed analysis and profiling of additional
market players (up to five).
Vietnam Automotive
Handbrake & Clutch Cable Market is an upcoming report to be released soon.
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release, please contact us at [email protected]