Hanoi (VNA) – Automobile electrification and the domination of Chinese automobile brands are forecast to become major trends of the automobile market of Vietnam in 2024, according to experts.
Last year, 301,989 vehicles of all kinds were sold, a drop of 25% year on year, according to the Vietnam Automobile Manufacturers’ Association (VAMA). But with the introduction of a series of new electric and hybrid car models, choices are on the rise for discerning customers.
In 2023, VinFast completed its electric vehicle product range with a series of SUVs including VF5, VF6, VF7, VF8, VF 9 and VF3, of which most models are already on sale. Toyota introduced the Toyota Yaris Cross, Innova Cross hybrid models, while Hyundai supplied the brand new product Ioniq 5. The luxury car segment is also bustling with the presence of the trio EQB 250, EQE 500 4Matic and EQS 500 4Matic.
This year, it is expected that the wave of electric vehicles will continue to spread strongly and receive more attention in the Vietnamese market, especially in the context of declining air quality conditions.
A report recently released by SSI Securities said that the Vietnamese electric vehicle market is small but full of growth potential. According to SSI's report, electric vehicles have become more popular in Vietnam, accounting for 6% of passenger car sales in 2023.
BMI Research data shows that electric vehicle sales in the auto industry will record a compound growth rate of up to 26% in the period 2023-2032, equivalent to an annual sales volume of 65,000 vehicles in 2032.
Besides electrified cars, experts also predicted a wave of Chinese cars entering the Vietnamese market as Chinese automakers flock to the Vietnamese market to compete with other manufacturers from Japan and the Republic of Korea in 2024.
Previously, the Vietnamese auto market often welcomed "affordable" cars from China with prices of 400-500 million VND (16,000-20,000 USD). However, Chinese brands such as Brilliance, Beijing, Zoyte, and Haima are eliminating the stereotype of cheap and low-quality Chinese cars.
Evidently, the emergence of systematic dealer systems and regular customer outreach activities have also initially created a foothold for modern Chinese cars in Vietnam.
Chinese auto brands in 2024 have not hidden their ambition to continue conquering the Vietnamese market through the introduction of not only popular car models, but also “luxury” brands.
Experts say a higher price level will create a "more luxurious" image for the cars, gradually erasing the stereotype of "cheap-priced Chinese cars".
Thanh Hai, an automobile expert said that an important advantage for Chinese automakers comes from their dominance in the supply chain. This translates into low production costs, easily customized products, and spaces for the application of "toys" when needed.
Eye-catching, modern design, full amenities and, more importantly, low price are the advantages of Chinese cars, Hai said. In markets where price is always a priority factor for consumers with Vietnam as a typical example, Chinese automobiles will be a significant counterweight to existing players in the market./.
