Chinese electric cars flood into Vietnamese market
According to Deloitte's assessment, with a population of more than 100 million and an average income that has surpassed the "motorization" level, reaching an average income per capita of 5,000 USD/year, Vietnam is one of the "hottest" developing automobile markets in Southeast Asia.
In addition to car brands from Japan, Korea, Europe, America, etc., in recent years, Chinese car brands have also penetrated deeply into the market. In particular, in just the past year, electric car models "Made in China" have appeared massively in many different segments.
Wuling Hongquang Mini EV is considered the first pure Chinese electric car model to be brought to Vietnam in 2023. Photo: Dinh Quy
In 2023, we can mention the appearance of the Wuling Hongquang Mini EV brand joining and opening the mini electric car segment for urban areas with the positioning of an electric car to replace motorbikes for moving around the city. After that, Haima returned to Vietnam with the pure electric version Haima 7X-E, competing in the 7-seat MPV segment with Mitsubishi Xpander, Toyota Veloz Cross.
The MPV Haima 7X and the pure electric version 7X-E will enter the Vietnamese market at the end of 2023. Photo: Hoang Hiep
In June 2024, MG launched the pure electric vehicle MG EV4 in the very crowded B-SUV segment, competing with VinFast VF 7 and a series of other best-selling gasoline-powered models such as Hyundai Creta, KIA Seltos, Toyota Yaris Cross, Mitsubishi Xforce, Mazda CX-30, Honda HR-V, ... and the newly launched "compatriot" Lynk & Co 06.
Most recently, China's largest electric car manufacturer BYD simultaneously introduced three car lines: Seal, Atto 3 and Dolphin. These three models compete in the luxury sedan, B+ SUV/Crossover and B-size hatchback segments.
According to many sources, this July, the domestic market will also welcome a new electric car brand, Aion, a subsidiary of GAC, entering the market with SUV products. In addition, SAIC may also introduce the Mini EV's "senior" model, Bingo, and the small electric car Baojun Jep.
Thus, in just about 1 year, the Vietnamese market has welcomed and will welcome over 10 new electric car models from China. An “unprecedented” number. This shows the potential of the Vietnamese automobile market that Chinese car manufacturers certainly do not want to stay out of.
BYD's trio of electric cars have just been launched with prices that are considered not cheap. Photo: Hoang Hiep
Chinese electric cars "bloom early, fade late"?
Obviously, the fact that Chinese car manufacturers bring more products to Vietnam will make the market more vibrant and increase the competitiveness of existing brands, and Vietnamese customers will be the ones who benefit the most. However, the massive influx of Chinese brands reminds many people of the wave of “Chinese motorbikes” about 20-25 years ago.
Sharing with VietNamNet about the above trend, auto market expert Nguyen Thanh Hai (Hai Kar) said that although many electric car models are being brought to Vietnam, compared to the previous wave of Chinese motorbikes, it is very different because cars have great value, especially electric cars, which need many other factors to be able to cover the entire market.
“Using electric cars has many associated costs and the most pressing issue is still the charging station issue, so I think it will be very difficult to create a strong wave of Chinese cars like motorbikes before,” he gave his perspective.
According to Mr. Hai, at this time, apart from VinFast, no other car manufacturers are building fast charging stations, including luxury cars. VinFast has spent hundreds of millions of dollars to build charging stations, but other manufacturers cannot share charging stations, so in Vietnam, it is very difficult for Chinese electric cars to compete.
VinFast has a widespread fast charging station system in 63/63 provinces and cities, something that many other electric car companies cannot have. Photo: VinFast
Experts say that, unlike vehicles using internal combustion engines, electric cars that want to gain market share need thorough and in-depth investment from manufacturers, especially in the dealer system and charging station infrastructure. This is something that experts have not seen any special investment from Chinese giants.
Sharing at the recent BYD brand launch in Ho Chi Minh City, Asia-Pacific General Director Liu Xueliang said that the company aims to have 50 dealers nationwide by early 2025. However, the representative of China's largest electric vehicle company said that the policy is not to focus on building its own public charging stations in Vietnam, instead, customers will charge at stations developed by third parties.
This statement made many people "disappointed" because BYD always carries the title of the best-selling car company in China.
Marketing expert Nguyen Van Phuong said that the strength of Chinese electric vehicles is their diverse designs, belonging to many different segments. Some of them are best-selling models in the world and especially in the billion-people Chinese market.
However, according to Mr. Phuong, whether Chinese electric vehicles are accepted in Vietnam or not depends on many factors, including two core points: the charging station system and brand positioning.
“For Vietnamese people, cars are an asset but also the main means of transportation for long-distance travel such as business trips or returning to the countryside. Most ordinary customers do not have a place to park and arrange a charging station at home, so having a convenient fast charging station is very important. Compared to domestic electric car manufacturer VinFast with a charging station system covering 63 provinces and cities, down to the district and commune levels, it is clear that Chinese electric car manufacturers in general and BYD in particular are in a difficult position,” Mr. Phuong analyzed.
In addition, according to this marketing expert, the brand factor also makes it difficult for Chinese car manufacturers to enter the Vietnamese market because most Vietnamese people have "nailed" the idea that Chinese cars are cheap but not of high quality. However, the newly launched models of BYD such as Dolphin (659 million) or Atto 3 (766 and 886 million) are quite expensive compared to some models in the same segment.
“Vietnamese people always consider cars as valuable assets, even as jewelry for themselves. Therefore, buying a “Chinese car” at a not-so-attractive price will make many people hesitate,” Mr. Phuong analyzed.
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Source: https://vietnamnet.vn/o-at-vao-viet-nam-nhung-khong-dau-tu-tram-sac-xe-dien-trung-quoc-muon-an-san-2304202.html
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