top of page

2024: Electric cars explode in Vietnam

According to forecasts of many experts, the electric vehicle market in Vietnam will continue to become a trend and explode in 2024.

thị trường ô tô điện Việt Nam 2024

Vietnam's electric vehicle market is forecast to leap from 2024 with the participation of many domestic and foreign car manufacturers. A report recently released by SSI Securities Company said that the electric vehicle market is small but full of growth potential.

SSI said that electric vehicles have become more popular in Vietnam (estimated to account for 6% of passenger car sales in 2023), thanks to the efforts of Vinfast - a Vietnamese electric vehicle manufacturing enterprise. BMI Research data shows that electric vehicle sales in the auto industry will record a compound growth rate of 26% in the period 2023-2032, equivalent to an annual sales volume of 65,000 vehicles in 2032.

Despite a positive assessment of the electric vehicle segment, SSI also points out the weaknesses of electric vehicles compared to traditional gasoline cars such as price, operating range on one charge, and lack of charging station infrastructure. and lack of repair service centers. Faced with this situation, SSI believes that the Government needs to issue more support policies to stimulate demand, in addition to a 12% reduction in special consumption tax rates and exemption of registration fees for electric vehicles.

Not only in Vietnam, governments around the world have also issued regulations on changing vehicle types from pure gasoline and diesel to hybrid and pure electric vehicles. The trend of the electrification wave is receiving more and more attention from consumers, especially in conditions of declining air quality. Right in early 2024, the Vietnam electrified vehicle exhibition (the first exhibition on "green cars") took place in Hanoi, allowing domestic consumers to test drive and learn about the core technology of the vehicle. electricity. The focus of the exhibition is the display space for electrified vehicle product lines and vehicle accessories from major brands in Vietnam, helping domestic users have a different perspective on this "green vehicle" line.

Currently, in addition to VinFast, auto companies present in the Vietnamese market are also gradually converting to electric vehicles and vehicles using "green" energy .

At the international conference on converting to electric vehicles taking place in November 2023, Deputy Minister of Transport Le Anh Tuan said: "In our country, the transformation of green economic development is an inevitable trend. Vietnam has also issued a series of preferential policies to support the electric car manufacturing and assembly industry and policies to encourage the use of electric cars. However, many difficulties and challenges have arisen in the process such as insufficient awareness of businesses about green energy conversion, lack of charging station infrastructure, and lack of mechanisms to encourage consumption and vehicle use. electricity".

According to Mr. Pham Hoai Chung, Deputy Director in charge of the Institute of Transportation Strategy and Development, Vietnam has currently introduced preferential policies to support the production and assembly of electric cars. These include policies that are equivalent to, or even higher than, some countries in the region.

"Vietnam's policies to encourage the use of electric cars are focusing on battery electric vehicles (BEVs) through tax incentives for electric vehicle manufacturers (import tax, corporate income tax, etc.) industry...), as well as supporting consumers to use electric vehicles at lower costs such as special consumption tax, registration fees,...", Mr. Chung said.

Analyzing the opportunities and challenges to develop the electric vehicle ecosystem in Vietnam, Mr. Chung proposed 4 groups of policies to support the transition to electric cars, including incentives to encourage production, assembly, and import passwords; encourage user support; Develop electric charging station infrastructure and encourage the development of public passenger transportation using electricity.

The Electrified Vehicle Exhibition, a major event in the Vietnamese automobile market, will take place in early 2024

Talking to VietnamFinance, Mr. Nguyen Trung Hieu, Head of the Policy Subcommittee, of the Vietnam Automobile Manufacturers Association, commented that the electric vehicle trend in 2024 will continue to explode, with consumer demand for This car rising high.

In the past two years (2022-2023 period), many car manufacturers originating from China have launched many completely new hybrid and electric car models to Vietnamese consumers, located in many different segments from popular to luxury, this is more or less affecting the development trend of electric vehicles in Vietnam and affecting the market share of domestic electric vehicle company VinFast. However, Mr. Hieu believes that the appearance of these car companies will not greatly affect VinFast's market share but will help the electric car market in our country grow more and more.

“The majority of VinFast's target groups are customers who need to convert vehicles from internal combustion engines to electric vehicles. The appearance of Chinese car manufacturers only increases the diversity of products on the market and helps consumers have more choices," Mr. Hieu said.

Mr. Le Hoang Long, owner of a used car salon in Hanoi, said that it is impossible to deny the strong development of electric vehicles in recent years, especially the transformation of VinFast when deciding to plans to stop producing gasoline engine vehicles to pure electric vehicles. This has had a huge impact on the domestic auto industry, forcing established car manufacturers to also participate if they do not want to fall behind.

“However, one of the difficulties that car manufacturers are facing is the charging station system. Besides VinFast, most of the remaining car manufacturers do not have a charging station system covering the entire country. If it is only installed right at the company's showroom in very small quantities, this is considered a major barrier in reaching customers and significantly affects the process of converting purely gasoline and diesel vehicles to electric vehicles." Mr. Long said.

In 2024, there will be many new electric car models launched to customers

Meanwhile, automobile expert Le Truong Giang said: "Although the automobile market has gone through many difficulties and challenges, the economic recession has caused people to tighten their spending, leading to the need to buy cars. rent in 2023 will decrease significantly. However, the domestic electric car and hybrid car market is still quite vibrant, as the electrification race among car manufacturers and distributors is taking place in a big way."

“In 2024, the trend of shifting to electric cars is forecast to continue strongly around the world even though the entire auto industry is still facing many challenges. Therefore, the Vietnamese market is not out of that spiral and I predict there will be many new electric car models launched to customers," this expert predicted.

(Vietnam Finance)

bottom of page