Electric vehicles are becoming increasingly popular in Vietnam as more consumers turn to environmentally friendly means of transport. RMIT University Vietnam predicts that the electric vehicle market in Vietnam could reach a size of US$5-7 billion.
Consumers are increasingly interested in electric vehicles. In the photo: customers are looking at VinFast's VF3 model at Landmark81 in Ho Chi Minh City - Photo: CONG TRUNG
The latest report from RMIT University Vietnam predicts that the electric car market in Vietnam will reach a size of 5 - 7 billion USD within the next 5 years, opening up great opportunities for domestic and international businesses.
Global demand for electric vehicles continues to grow
Worldwide, electric vehicles (EVs) and plug-in hybrids continue to enjoy impressive growth.
According to data from Rho Motion - a market research unit on energy and electric vehicles, global sales of pure electric and hybrid vehicles increased by 30.5% to reach 1.69 million units in September 2024.
In particular, China led the way with a 47.9% increase and 1.12 million vehicles sold. North America recorded sales of 150,000 vehicles, up 4.3%, while Europe reached 300,000 vehicles, up 4.2%.
Rho Motion notes that many governments are also implementing strong support policies. For example, France has announced new incentives for electric car buyers, while Germany has reduced taxes for companies that sell these vehicles. Europe is forecast to sell 9.78 million electric cars by 2030, affirming the continent’s central position in the green transition.
In the US, more than 1 million electric vehicles were sold in the first 10 months of 2024, accounting for 7.9% of all new vehicles. Despite the difficulties of the auto industry, electric vehicles continue to demonstrate growing appeal.
Booming investment in electric vehicles, accelerating the opening of charging stations
According to Tuoi Tre Online , many manufacturing and trading enterprises are shifting their investment capital to electric vehicles. In Vietnam, VinFast is leading the green revolution in transportation with a series of bold steps, from installing a network of charging stations to promoting purely electric motorbike taxi and taxi services.
A recent report by RMIT University Vietnam predicts that the electric vehicle market in Vietnam could reach a size of 5 - 7 billion USD in the next 5 years - Photo: CONG TRUNG
The latest figures show that VinFast's car sales in November 2024 reached more than 16,000 units, bringing the total number of sales since the beginning of the year to over 67,000 units in the domestic market. Following VinFast is Hyundai, which announced the delivery of 10,303 units, and Toyota Vietnam, which reached 8,851 units. In 2022, the peak year of the Vietnamese car market, the leading company did not exceed the delivery of 11,000 units per month.
VinFast's November sales increased by more than 40% compared to the previous month, almost certainly making the car company the number one market share in Vietnam, because the number of undelivered orders is quite large. This month, VinFast only announced the total figure, not the individual sales of each car model.
According to Ms. Duong Thi Thu Trang, Deputy General Director of VinFast Global Business, this impressive sales figure shows that Vietnamese consumers are increasingly responding to the use of environmentally friendly means of transport.
Not only VinFast, businesses such as TMT Motor, BYD, MG and luxury car brands such as Mercedes-Benz, BMW, Porsche, Audi are also actively bringing products to Vietnam. This creates a vibrant market picture where consumers have more choices.
However, charging station infrastructure and grid capacity remain major barriers. Currently, VinFast has installed more than 150,000 charging ports, reaching a rate of 15 charging ports per 10,000 people. However, many opinions say that the charging station network is still not popular and convenient enough.
Vietnam's electric vehicle market size reaches 5-7 billion USD
According to Dr. Nguyen Son, lecturer in supply chain management and logistics at RMIT University Vietnam, consumers are beginning to consider environmental protection as one of the important motivations when considering buying a car.
This is in line with the global trend towards sustainable transport and is also the result of communication and education on environmental protection.
Policies such as free registration and reduced import taxes for electric vehicles also make this type of vehicle more attractive to consumers, in a context where the operating costs of electric vehicles are quite competitive when compared to traditional vehicles.
VinFast’s success in the electric vehicle market is likely to have an impact on investors as well, creating opportunities for larger investment funds to enter the electric vehicle industry. RMIT predicts that the electric vehicle market in Vietnam could reach a size of US$5-7 billion in the next 5 years.
Faced with this trend, according to many experts, upgrading the grid infrastructure, developing charging stations, encouraging the Government to move towards green energy, and further enhancing the competitiveness of the domestic electric vehicle industry are essential.
Source: https://tuoitre.vn/oto-dien-dang-thu-hut-nguoi-dung-quy-mo-thi-truong-viet-5-7-ti-usd-20241226171520429.htm
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