VinFast returns to the sales battle with the automotive industry giants in Vietnam

DNHN - In 2024, VinFast aims to sell 100,000 electric vehicles, a figure that far exceeds the number of vehicles sold by Hyundai - the brand that led the market in sales in Vietnam last year.

In a survey conducted by Yahoo Finance and Ipsos in late November 2023, 57% of respondents said they did not intend to buy an electric vehicle as their next car. The main reasons why consumers refuse to buy electric vehicles include high prices, limited driving range and lack of adequate charging station infrastructure.

In Vietnam, there are no specific survey data on consumer sentiment when faced with the choice between petrol and electric vehicles. Despite the presence of models from Hyundai and Kia, Vingroup’s VinFast brand still holds an almost absolute market share in the electric vehicle segment.

Last year, VinFast sold nearly 34,900 electric cars, mainly in the Vietnamese market. Compared to the sales of other petrol car brands in Vietnam, VinFast ranked sixth in total vehicles sold in 2023, outperforming Mitsubishi, Honda and Suzuki. By 2024, the electric car company of billionaire Pham Nhat Vuong aims to produce 100,000 units, three times more than in 2023, directly competing for the leading market share in new car sales in Vietnam.

At the end of February, VinFast launched a price reduction campaign for its electric vehicle models, promising to be cheaper than petrol vehicles in the same segment and with lower battery and charging costs per kilometre than fossil fuels. In addition, VinFast also supports car loans for up to 8 years with preferential interest rates, in which all interest costs and risks during the 8-year loan period are borne by VinFast. Each month, customers only need to pay from VND 5.29 million in principal plus interest.

Over the next two years, VinFast plans to invest VND 10,000 billion to build and upgrade its charging station system, to have 3,000 charging stations and 150,000 charging ports nationwide. Currently, VinFast’s charging stations are present in 80/85 cities, with a distance between stations of no more than 3.5 km. Charging stations are located in car parks, shopping centres, apartment buildings and office buildings, as well as on national highways and motorways.

VinFast is focusing on addressing the issues that consumers face when deciding to buy an electric vehicle. With these moves, VinFast can regain its leading position in the car sales market in Vietnam.

H.C