After VinFast launched its “blockbuster” strategy on the development of electric cars, a number of automakers imported electric cars to sell them in the domestic market.
Experts believe that Vietnam, with a population of 100 million, a high percentage of internet users and a high proportion of people eager to experience new things, is one of the best markets for electric cars in South Asia. Southeast in the coming years.
The Vietnam Automobile Manufacturers Association (VAMA) estimated that Vietnam will have 1 million electric vehicles (EVs) by 2028 and the market will grow rapidly in 2030-2040. It is expected that by 2040, Vietnam will have 3.5 million electric cars.
Automakers have realized the potential of the Vietnamese market and taken the first steps to enter the market.
VinFast launched the race to develop the electric car. In January 2022, the automaker owned by billionaire Pham Nhat Vuong said it had stopped making combustion engine cars to focus on making electric vehicles.
At the end of 2021, the automaker presented and delivered to its customers the VF e34, its first electric car model, at a price of 690 million VND. A number of car models were displayed by VinFast at well-known exhibitions around the world, including VF7, VF8 and VF9 earlier this year.
With the strategy pursued by VinFast, a new market segment – the EV – has emerged and new consumer behavior has changed with an increased interest in green vehicles.
Other automakers have launched their electric vehicle distribution plans. Thaco, for example, introduced KIA EV6 last year and the first cars are expected to be delivered to customers by mid-2022.
Nissan has registered for industrial design protection and will introduce Corssover Nissan Ariya which will compete with VinFast’s VFe34 and VFe35 (VF8).
Meanwhile, Toyota, a major market maker, has reaped the first fruits with hybrid electric vehicles.
It provided hybrid versions to existing models, such as Toyota Corolla Cross, Camry and Corolla Altis.
Toyota’s hybrid electric cars have helped Vietnamese consumers get used to the concept of fuel-efficient vehicles, especially as gasoline prices rise.
The Chinese-made Hongqi E-HS9 was introduced in Vietnam in January 2022 with four versions, priced at VND2.77 billion to VND3.69 billion.
Meanwhile, Mercedes Benz will introduce EQS and EQB; the first is in a higher class than the S-Class, while the second is the electric version of the GLB-Class which is sold in Vietnam.
Previously, since October 2020, Porsche imported three Taycan versions to Vietnam, priced at VND 5.7-9.5 billion. The manufacturer has built charging stations in HCM City.
Audi introduced the E-tron GT at the end of 2021, but still hasn’t announced official retail prices.
Volvo, Tesla and Jaguar have also joined the race with electric cars imported through official channels, and private car dealerships have appeared in the domestic market.
Taxes and fees
While the market has potential, automakers still have a long way to go to develop electric vehicles. Consumers are not only interested in the quality and price of vehicles, but also in capacity, charging time and charging stations.
When developing the ICE (internal combustion engine), car manufacturers pay most attention to the development of sales agents and marketing networks. Meanwhile, for electric vehicles, the top priority is the development of charging stations, so that people can charge their cars anytime and anywhere.
A VinFast representative said that by the end of 2021, the company has completed a plan to expand and build a network with 2,000 charging stations nationwide with 40,000 charging ports and plans to build 150,000 additional charging ports.
Experts believe that the prerequisite that manufacturers of electric vehicles, especially manufacturers of popular models, must have is large networks of charging stations. Therefore, in the development of EVs, the construction of charging stations must be one step ahead. Car manufacturers can cooperate with each other to share charging stations.
Automakers need policies to encourage the production and use of these vehicles.
The National Assembly and the government have taken many important decisions, creating a driving force for the EVN to become accessible. The luxury tax and vehicle registration tax have been reduced for a number of years.
The luxury tax on battery electric cars with less than 9 seats has been reduced from 15% to 3% since March 1, 2022, and will be applied for five years. Meanwhile, tax rates on petrol cars with 9 seats or less are imposed based on engine capacity, 35% for cars under 1.5L and 150% for cars over 6 .0 L.
The registration tax on electric vehicles was exempted (0%) on March 1, to be applied for three years under Decree 10/2022/ND-CP.
Experts believe that 2022 will see the turning point for the auto industry as many car models will join the market.
The competition is very tough as Thailand, Indonesia and Malaysia have all shown ambition with electric cars. Thailand, for example, aims to become a major electric car manufacturing base in the world.
However, the opportunities are great for those with sensible trading strategies.
Thailand, Indonesia, Malaysia and Vietnam race to become Southeast Asia’s electric car hub
In Vietnam, the government and the National Assembly have issued preferential policies for electric vehicles.
2022 expectations: electric car manufacturing booming in Vietnam
A number of electric car makers in Vietnam plan to launch electric vehicle models this year with preferential policies for users. Experts predict that 2022 will see a boom in Vietnam’s electric car market.