Vietnam’s EV market to see strong growth in 2023: BMI

Vietnam’s passenger EV market is currently dominated by VinFast, which held more than 50% market share in 2022. (Photo: VinFast)

Hanoi (VNA) – Passenger EV sales in Vietnam are expected to at least double this year, according to BMI Research, a Fitch Solutions research unit.

“In 2023, we expect passenger EV sales to expand by 114.8% year-on-year to reach around 18,000 units,” said BMI’s report.

Specifically, sales for battery electric vehicle (BEV) could surge by 104.4% compared to the previous year to nearly 17,000 units, the report said. Plug-in hybrid vehicle, or PHEV, could jump nine-fold year-over-year to almost 1,100 units.

“We currently expect passenger EV sales in Vietnam to average annual growth of 25.8% over 2023-2032 to reach an annual sales volume of around 65,000 units, up from 8,400 units in 2022,” said BMI.

The penetration rate for passenger EVs — defined as passenger EV sales as a percentage of the country’s total passenger vehicle sales — is set to increase to 13.6% by 2030, a huge jump from last year’s 2.9%.

Vietnam’s passenger EV market is currently dominated by VinFast. (Photo: VinFast)

According to BMI, Vietnam’s passenger EV market is currently dominated by VinFast, which held more than 50% market share in 2022. The rest of the market is held by Chinese brands.

A strong EV growth is expected to be fueled by increased deliveries of VinFast vehicles as the local EV maker steps up production throughout 2023.

Such EV manufacturers as VinFast, Wuling HongGuang, Skoda and Hyundai are expected to drive strong market growth for the 2023-2032 period, it noted./.

VNA