Automobile industry going sustainable route with electric vehicles

An electric car produced by Tesla (Photo: Tesla)

Hanoi (VNA) – Many automotive manufacturers have announced to soon phase out internal combustion engine and shift towards electric vehicles, which, analysts said, has marked the start of the era of electric cars and scooters.

Over the past centuries, internal combustion engine has played a significant role, particularly in the transport sector. Along with socio-economic development, the rapid increase in the number of vehicles has put countries against big challenges in how to deal with issues regarding environmental pollution and energy demand.

In such circumstances, countries in the world have conducted various research studies to seek ways to ease the reliance on fossil fuels, and reduce environmental pollution and greenhouse gas emissions.

The transport sector has seen the rise of several trends in energy-efficient technologies that would replace oil and gas, with electric vehicles gaining popularity in many countries in the world.

The shift of major car makers

According to the International Energy Agency (IEA), electric car sales have soared after entering commercial markets in the first half of the past decade. Only about 17, 000 electric cars were on the world’s roads in 2010. By 2019, that number had swelled to 7.2 million, 47 percent of which were in China. Nine countries had more than 100, 000 electric cars on the road. At least 20 countries reached market shares above 1 percent.

Although Tesla has not taken the lead in sales or turnover, it has become the most-loved electric auto brand for 2019 by AutoTrader. It is also the world’s most valuable carmaker.

Volvo has recently stated that XC90 would be the last new Volvo model launched with a combustion engine option. It would be the start of a new focus for the brand, with much of its projects shifting towards making sure that half the cars it produces by 2025 will be fully electric.

Governments have also responded to the “green revolution.” France and the UK affirmed that they will ban internal combustion engine by 2040.

In the face of the alarming air pollution, the Vietnamese Government has urged the Ministry of Transport to take solutions in order to tighten the inspection over automobile and motorbike emissions.

Electric bus produced by VinFast ready for trial run in major cities. (Photo: VinFast)  

In addition, Decree No. 57/2020 that took effect from July 10, 2020 has helped to attract investments in electric, hybrid and natural gas vehicles in Vietnam, as not only car makers but also auto parts manufacturers now benefit from a zero percent import tariff for spare parts to serve the production of such vehicles.

According to the Vietnam Association of Motorcycle Manufacturers, petro-fueled motorbikes have dominated the domestic two-wheeler industry, making up nearly 95 percent of the total.

However, as of 2019, the country counted 5 million electric bikes and motorbikes, the association said.

The birth of VinFast Klara, an electric smart scooter created by a Vietnamese EV company that is founded by Vingroup, in 2018 gave a boost to the domestic electric motorbike industry.

The firm also inaugurated a 6.4ha factory with an annual capacity of producing 250,000 electric motorbikes, and planned to build tens of thousands of charging stations, which has reflected the growing popularity of the transport means in Vietnam.

At the same time, global brands like YADEA, MBI and PEGA are also on the race to gain market shares in Vietnam.

Electric motorbikes are gaining popularity in Vietnam. (Photo: VNA)

A study by the US’s Consumer Reports show that electric cars would save from 6,000-15,000 USD for the first 320,000km compared to their counterparts fueled by oil or petrol.

Electric vehicles have also been favoured thanks to the integration of new technologies.

Nguyen The Hiep, Sales Manager of YADE Vietnam, said the domestic electric vehicle industry needs much time to gain the market share, and the key is to improve product and service quality./.