In February, TMT Motors delivered more Wuling Mini electic vehicles (EVs) to customers in Kien Giang province, Hanoi, Ho Chi Minh City, and elsewhere, thus increasing the company’s total number of EV sales to about 500 to date.

Ho Hai An, general director of TMT Motors Electric, told VIR, “The Vietnamese vehicle market is currently quite vibrant, with many new car brands. TMT Motors will have its own direction, providing electric car models with affordable prices and guaranteed quality in line with global General Motors standards.”

“We are preparing for the launch of new EV models in the local market in 2024 to bring more choice to local customers, and the opening of more Wuling dealerships in other cities and provinces nationwide.”

A pivotal phase for e-car market growth, illustration photo

Last year, TMT Motors launched its first electric vehicle model, the Wuling Mini EV, through a tri-party venture, opening up the small electric car segment in Vietnam. The company also opened a system of more than 20 authorised dealers nationwide.

An pins high hopes on its EV business, saying that EVs are an inevitable part of the world’s car market. “Vietnamese customers are increasingly interested in electric cars because the cost of using electric cars is lower than petrol ones, and they contribute to environmental protection. The first electric car model that TMT Motors offers to the market is an entirely new segment, with no competitors, so there are opportunities for us to dominate the market,” said An.

The path is similar for other brands, including GM Company.

“We plan to bring purely EV products to Vietnam in the future when market conditions are more favourable, including the government’s preferential policies for EVs, and more developed infrastructure for EVs to best meet users’ requirements,” a representative of GM said. “We currently have all the elements such as a finance and distribution system to accelerate when the market has all favourable factors. We see EVs as a trend in the long future, and we are expecting a boom. The segment that we are focusing on in the Vietnamese market is four-seat sedans.”

GM has been present in the Vietnamese market through distributors since 2020 when the market saw many difficulties during the pandemic. Seeing the local potential, the company has started its direct distribution activities in the market since August 2023, focusing on gasoline-fuelled cars.

Last year, Vietnam’s auto market saw a decline. However, GM still reported a growth rate of 18 per cent with sales of more than 5,000 units.

Elsewhere, Vietnamese-run carmaker VinFast saw a growth of 35 per cent in EV sales in the fourth quarter of 2023 compared to the previous quarter. For the whole of 2023, VinFast electric cars sold in Vietnam reached about 32,000. The company launched the four models during the year and plans to begin sales of the VF 3 by the third quarter of 2024.

The company has said the general market is still gloomy. “We have increased the number of vehicles delivered in the fourth quarter. However, due to global economic challenges, the conversion to EVs in some areas is still slower than expected, thus affecting the number of delivered vehicles,” said Tran Mai Hoa, deputy general director of Sales and Marketing at VinFast.

According to the Vietnam Automobile Manufacturers’ Association, the electric motorbikes and electric cars market in 2023 saw growth. It saw the launch of more hybrid and electric car models, from popular to luxury segments. This situation strongly changed from 2020 when the market had no products with similar or pure electric engines, except for Toyota with the B-sized SUV Corolla Cross hybrid.

According to SSI Securities Corporation, EVs accounted for 6 per cent of car sales in 2023.

Various experts said that EVs will receive more attention in the Vietnamese market this year. Currently, VinFast has almost no competitors in the most popular segment. Brands like Toyota, Hyundai, Mitsubishi sell hybrid or pure electric cars, such as the Corolla Cross hybrid, Xpander hybrid, and SantaFe hybrid. For luxury car manufacturers, in addition to BMW and Mercedes, electric cars will have other options from Volvo and Porsche.

BMI Research forecast that EV consumption will record a compound growth rate of 26 per cent in the 2023-2032 period, equivalent to an annual consumption of 65,000 vehicles in 2032.

However, there are still concerns over unfavourable conditions in the market, including EV infrastructure and fire risks.

Currently, EV charging stations have widespread coverage in Vietnam, with nearly 150,000 charging ports nationwide. They are located mainly in apartment buildings, rest stops, shopping centres, office buildings, parking lots, and gas stations. However, investment in installing charging stations on expressways is still limited.

“Authorities should soon issue policies for manufacturers and users to promote the EV development. Charging station infrastructure systems for EVs also need more investment to meet user needs,” said An of TMT Motors.

The GM representative added that in other countries such as Thailand and China, the governments have many supporting policies for EVs such as tax reduction and registration tax exemption to encourage people to use EVs. In these markets, there are currently hundreds of EV brands.

“I think 2024 is still the year of petrol cars. We will still focus on providing petrol car models in the Vietnamese market. It is expected that we will distribute four to five new car models in the mid-size segment in the months to come,” she noted.