Small but promising EV market on rise

June 28, 2023 | 09:15

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A number of electric car manufacturers in Vietnam plan to launch mini models, with the world increasingly interested in and strongly committed to reducing emissions.

If Vietnam can push ahead with robust battery-charging infrastructure, its EV landscape will be improved immenselyPhoto: Le Toan

After signing a strategic cooperation agreement with the joint venture of General Motors and SAIC-Wuling on the manufacturing, assembling, and exclusive distribution of electric vehicles (EVs) in Vietnam, Hoang Minh Dong, director of TMT Motor, said the company would officially launch two versions of the Wuling HongGuang Mini EV and announce its sales policy on June 29-30 in Hanoi and Ho Chi Minh City.

The Wuling HongGuang Mini EV includes a standard and fully enhanced version. Each version will have the option of a battery capacity of 9.6kWh or 13.4kWh, for a maximum travel distance of 120 km and 170 km, respectively.

TMT Motor stated it has the sole authorisation to manufacture, assemble, and distribute the EV models in Vietnam, and that Wuling would support its production by providing auto parts to ensure quality and delivery. Because of its tiny size, elegant design, and flexible space with four seats, the Mini EV will be a new option within the lower price range of many Vietnamese clients.

According to Dong, the selling price will give people with average incomes of about $650 per month the chance to access

the cars. “The reason for choosing this mini EV model comes from the fact that TMT Motor found that this EV belongs to a segment the market is lacking, and will meet the needs of customers with a stable design and reliable quality,” he said, adding that the model is a bestseller in China.

Chinese car manufacturers will soon land in the Vietnamese market with many mini EV models. The Chinese EV manufacturer Zhidou displayed the A01 model at the Autotech & Accessories 2023 exhibition in Ho Chi Minh City. This is a small EV model, introduced specifically for moving in the inner city.

Zhidou said it would enter into a joint venture with a domestic partner to assemble this model. The Zhidou A01 model will go on sale in Vietnam in the next three months.

Meanwhile, at Vingroup’s annual general shareholders’ meeting, billionaire Pham Nhat Vuong revealed a new direction for VinFast, which is to expand and develop A-class mini EVs.

“We are deploying until the end of 2024 to launch a tiny, low-priced, beautiful car. In the next few weeks, we will announce the details. Towards becoming the world’s top car company, we will not ignore any product that the market needs,” said Vuong.

On June 8, VinFast officially launched the VF3, a mini-EV model designed specifically for the Vietnamese market. With its advantages of zero emissions, noise-free operation, environmental friendliness, and high safety standards, it has the potential to become the new “national vehicle” of the Vietnamese people, the company said.

“Mini EVs are expected to become a trend in the Vietnamese car market, meeting the needs of personal mobility, especially in urban areas. However, they also have limitations in terms of range and speed compared to larger vehicles. The development of charging infrastructure is also a challenge for mini versions,” said Nguyen Dinh Thong, director of the Automotive Training Centre.