What green vehicle options do Vietnamese customers have?

Only VinFast is pursuing a purely electric path, while Japanese manufacturers have opted for hybrids, Korean manufacturers have chosen both, and American manufacturers have stayed out of the game.

Considering the mass-market vehicle segment in Vietnam specifically, the approach to electrification (green vehicles) is not uniform. Based on the strengths of each brand, their own perspective, and business strategy, each manufacturer brings different products to the market.

"Green" vehicles generally include purely electric EVs and hybrids. Hybrid vehicles incorporate an electric motor alongside the internal combustion engine. Hybrid vehicles are divided into two types: self-charging (HEV) or plug-in (PHEV). Purely electric EVs use battery storage (BEV) or fuels such as hydrogen (FCEV).

In Vietnam, FCEVs are not yet available, while PHEVs are only seen in the mainstream segment like the Kia Sorento, and in the luxury segment like Volvo. The other two forms, HEVs and BEVs, have already appeared. This is also the main distinguishing feature that differentiates manufacturers' approaches to electrification.

First is the purely electric vehicle (EV) market . Currently, VinFast is the only mainstream car manufacturer pursuing this product line, meaning it doesn't sell gasoline or diesel cars. After a "marketing" phase with gasoline-powered models like the Fadil, Lux A, and Lux ​​SA, VinFast completely shifted its business direction to electric vehicles from the second half of 2022.

A VF 8 model at VinFast's factory in Hai Phong . Photo: Son Pham

To date, the Vietnamese company's range of pure electric vehicles (BEVs) sold on the market includes VF 5 , VF e34 , VF 8 , and VF 9 , respectively in the A+, B+, D, and E segments. In the near future, the VF 3 (size A), VF 6 (size B), and VF 7 (size C) will be introduced.

For VinFast, electric vehicles have been the strategy the Vietnamese company has targeted from the beginning and serve as the foundation for its expansion into international markets. Compared to larger manufacturers with experience and technology in internal combustion engine production, electric vehicles represent a more logical approach for a young company like VinFast. Both in terms of competitiveness and potential for success, electric vehicles offer VinFast more positive prospects. This is why VinFast's business in international markets, from the outset, has focused on electric vehicles.

In Vietnam 3-4 years ago, the charging station infrastructure and customer awareness of electric vehicles were both low. Therefore, VinFast couldn't immediately launch electric vehicles. Furthermore, the goal of the car manufacturer with a factory in Hai Phong when it first started selling cars wasn't to popularize electric vehicles, but rather to increase sales, brand recognition, and the frequency of VinFast-branded vehicles on the road.

While gasoline-powered models, especially the Fadil, successfully spread the brand's image with top sales in each segment, VinFast began its second phase: electric vehicles. To date, VinFast is the only company in the mainstream vehicle segment to invest in building a network of public charging stations, with over 1,000 stations nationwide (as of October 2022). Mr. Pham Nhat Vuong, chairman of VinFast, said they will share charging stations with other manufacturers after 10 years (2033).

The second type is hybrid vehicles that don't require external charging . The number of vehicles equipped with this engine in Vietnam is increasing. Japanese manufacturers, especially Toyota, are pursuing this segment most aggressively.

Toyota introduced the Corolla Cross hybrid to Vietnam in June 2020. At that time, the Japanese manufacturer planned to promote two new segments for the domestic market: hybrids and GR-S models. GR-S models feature sporty body kits, unlike the purely sporty GR models. The first model to have a GR-S variant was the Vios, but the limited market reception led the company to temporarily postpone plans for this segment.

In contrast to the GR-S, the hybrid vehicle segment is attracting more customer interest. Following the Corolla Cross, the Altis and Camry have successively offered hybrid gasoline-electric engine configurations. Two new Toyota models, the Yaris Cross and Innova, which are about to be launched, will also have hybrid engine options.

Toyota is investing heavily in the hybrid vehicle segment in Vietnam because the Japanese manufacturer's global strength lies in this engine technology. In the field of battery-electric vehicles, Toyota currently only has the bZ4x (BEV), a collaboration with Subaru, alongside the Mirai fuel cell electric vehicle (FCEV). Meanwhile, almost all of the company's products have hybrid variants.

An Altis hybrid model is seen driving in Hanoi. Photo: TMV.

Following Toyota's hybrid offerings, Suzuki continued with the Ertiga hybrid, Nissan introduced the Kicks, Kia sold the Sorento hybrid, and Hyundai added a gasoline-electric hybrid variant to the Santa Fe. In late 2023, Honda is expected to introduce the CR-V with a hybrid option.

In the luxury car segment, currently only Volvo offers hybrid products with both self-charging and external charging options across its entire product range. The company may bring a purely electric vehicle to the Vietnamese market next year. Other manufacturers are limited to a few specific electric models.

Compared to European automakers, Asian automakers, especially Japanese ones, are less committed to electric vehicles. While major European manufacturers like Volkswagen, Mercedes, Audi, Volvo, and Stellantis (Fiat-Chrysler-PSA) have set a timeframe for phasing out internal combustion engine vehicles between 2030 and 2035, similar commitments have been absent from Japanese and Korean brands such as Toyota, Honda, Mazda, Nissan, Hyundai, and Kia.

The number of all-electric vehicles from Japanese manufacturers is currently quite limited. Honda only has one all-electric model, the Honda e, Mitsubishi has the eK Cross EV, and these are mainly sold in their home country of Japan. Nissan has the Leaf and Ariya, and Mazda has the MX-30. To date, most Japanese manufacturers have invested heavily in hybrids rather than all-electric vehicles.

In Southeast Asia, Thailand and Singapore are the largest electric vehicle markets, but only Toyota sells the bZ4x and Nissan sells the Leaf. Japanese manufacturers mainly sell hybrid vehicles in this market.

In Vietnam, a common characteristic of hybrid models is their highest price among all variants. Consequently, sales are significantly more modest compared to gasoline-powered options. For example, the Corolla Cross, a top-selling model in the Vietnamese market, only accounts for about 10% of hybrid sales. Nissan's Kicks has disappeared from the market due to its high price, making it difficult to compete with rivals like the Hyundai Creta and Kia Seltos.

Despite the price, hybrid vehicles solve the problem of limited charging stations in Vietnam. For customers seeking a new experience and preferring fuel efficiency, hybrids are a good choice. However, according to experts, given the low adoption rate and underdeveloped infrastructure for electric vehicles, gasoline and diesel cars remain the most suitable option for customers in Vietnam. Hybrid or purely electric vehicles, with their respective limitations, cannot yet compare to internal combustion engine vehicles in terms of popularity and sales.

Combining both pure electric and hybrid vehicles is the approach Korean automakers are taking, although not many products are yet offered. A prime example is Hyundai, distributed by Thanh Cong. After the Santa Fe hybrid, the company launched the Ioniq in August, which is assembled domestically. Fellow Korean automaker Kia, distributed by Truong Hai, also plans to sell the EV6 alongside the Sorento hybrid , although the plan has been significantly delayed compared to the initial launch date in Q2 2022.

Hyundai and Kia haven't approached electric vehicles as quickly and aggressively as European manufacturers, but they're not as slow as Japanese companies either. In terms of purely electric vehicles, Hyundai currently offers the Ioniq 5 , Ioniq 6, Ioniq sedan, and Kona. The company also has hybrid variants for the Sonata, Santa Fe, Elantra, Tucson, and the fuel cell Nexo.

The Ioniq 5 on the assembly line at Hyundai Thanh Cong. Photo: TC Group

Hyundai and Kia primarily sell electrified vehicles in Europe. In Southeast Asia, their sales are not as high as in other markets, with Vietnam being the largest contributor. Before selling the Ioniq 5 in Vietnam, Hyundai had already distributed this model to markets such as Indonesia and Malaysia. The largest South Korean automaker also offers the Kona EV, Ioniq 5, and Ioniq 6 to Malaysia. In Singapore, Hyundai's electrified vehicle lineup is more diverse, offering the Kona EV alongside hybrid versions of the Tucson, Santa Fe, and Kona.

Besides major market share manufacturers, many Chinese car companies also sell electric vehicles, but the number of products is still limited. Examples include Wuling with the Hongguang Mini EV and Haval with the H6 hybrid. Chery will also soon be selling electric vehicles in Vietnam, but the specific product names have not yet been announced.

The rest of the market consists of brands that only sell vehicles with internal combustion engines, such as Ford, Subaru, Isuzu, Peugeot, Volkswagen, etc. In the future, the green vehicle segment is expected to see more brands entering, such as Volkswagen or MG.

Thanh Nhan

Vnexpress.net