Consumers and dealer concerned about future of EVs

Launching report "Driven by Voltage: Navigating the electric vehicle landscape" by KPMG in Ho Chi Minh City

Over 80 industry leaders attended the launch event to gain insight into Vietnam's burgeoning electric vehicle (EV) market, including automotive manufacturers, distributors, original equipment manufacturers, industrial park developers, financial services providers, and policymakers.

Through a comprehensive survey of over 1,000 participants and in-depth interviews with distributors and dealers, the research offered attendees a detailed look at consumer behaviour and market trends shaping the EV landscape.

Combined with the recent KPMG's Global Automotive Executive Survey, this research gives industry leaders the insights they need to propel Vietnam towards a sustainable and electrified future.

Nguyen Tuan Hong Phuc, partner, head of Customer and Operations Consulting at KPMG in Vietnam said: “Vietnam's EV sector is booming thanks to supportive government policies, growing consumer interest, and fast-paced tech advances. This creates the perfect environment for new ventures in mobility.”

Trieu Khac Thiep, head of Vehicles at Cho Tot Xe said, "Living green" is no longer just a trend; it has become a goal and an essential criterion influencing modern life behaviours for most people.

Over the past decade, Cho Tot Xe has embarked on a mission to create a new journey for millions of used vehicles through trade-in campaigns.

Its initiatives have reduced millions of tonnes of CO2 and helped users transition quickly to electric vehicles. In the coming decade, Cho Tot Xe will commit to improving the experience of searching for, selecting, and purchasing such vehicles across all platforms.

The report reveals Vietnam's EV sector as a fertile ground for innovation, driven by a confluence of factors like strategic government commitment to net-zero, supportive policies promoting a green economy create fertile ground for EV adoption. Consumer appetite is burgeoning, nearly 70 per cent of surveyed participants expressed interest in purchasing an EV, highlighting a significant shift in consumer preferences.

Market dynamics are expanding. Demand and supply in Vietnam's EV market are growing rapidly, both in the two-wheeler and four-wheeler segments, with a surge in domestic and international players (VinFast, Hyundai, Toyota, Kia, Yadea, and BYD).

Consumer preferences pave the way for success.The report delves into consumer behaviour, uncovering key preferences that shape EV purchasing decisions. Of this, younger generations are embracing electric vehicles. Early Gen Z and millennials are more likely to consider EVs, demonstrating a growing interest in sustainable and technologically advanced transportation. They often seek value. While core features like durability, performance, and comfort remain essential, buyers aged 35-44 increasingly prioritise resale value, even more so than after-sales services.

Charging infrastructure is critical, widespread availability of charging stations is paramount to address consumer concerns and encourage EV adoption. Customer experience is priority, from pre-sales to post-sales and even beyond, businesses must invest in customer analytics, effective communication, knowledgeable staff, efficient service, and ongoing support (parts and services).

In recent years, Vietnam's automotive industry has experienced significant growth and development. Although it started a bit later than neighbouring countries such as Thailand, Indonesia, and Malaysia, the potential is hugely promising. Vietnam has already established itself as a key player in the automotive market.

One key factor contributing to Vietnam's potential in the EV market is its growing manufacturing capabilities in the country. Some ICE and EV models are now produced domestically and exported. The emergence of EVs has presented new opportunities for the country to become a regional or even global EV powerhouse.

Additionally, trade agreements between Vietnam and other countries can play a pivotal role in driving Vietnam's EV industry growth. With one of the largest networks of free trade agreements among ASEAN countries, Vietnam can gain access to cutting-edge technology, knowledge, and partnerships with other EV markets, enhancing its capabilities further. It is also key for Vietnam to create a supportive policy environment, which includes tax incentives.

Vietnam's vehicle sales down 11 per cent in first four months According to a recent report from the Vietnam Automobile Manufacturers’ Association (VAMA), recorded sales of vehicles were down 11 per cent year-on-year to 82,515 units in the first four months of 2024.

Mitsubishi Electric to establish factory for automation products Mitsubishi Electric Corporation announced that it will acquire an 80 per cent stake in Fuji Bakelite Vietnam Co., Ltd. on the outskirts of Hanoi.

Electric vehicle growth to accelerate over the longer term A recent Citi Research report sees electric vehicles’ global volume growing modestly this year but after that, it’s pedal to the metal.

Selex Motors - pioneer in the electric motorcycle industry and carbon credits for electric vehicles Selex Smart Electric Vehicle JSC (Selex Motors) has partnered with PoA Carbon Management JSC (PoA Carbon) to implement a pilot project to develop carbon credits for electric vehicles.