From the case of VF8 stopping running, Green SM: Using luxury cars as taxis reduces the value of the car?

Billionaire Pham Nhat Vuong suddenly stopped using VinFast VF8 cars to run Green SM taxis. Many people argued that putting luxury GPS cars into high-end taxi services would affect the value of the cars.

GSM founder, billionaire Pham Nhat Vuong, recently announced the complete cessation of the Green SM Luxury taxi service using VF8 cars - Photo: VF

Billionaire Pham Nhat Vuong was surprised when he decided to withdraw the high-end electric car model VF8 from Xanh SM's high-end taxi service, a move that caused heated debate in the community.

Using luxury cars as taxis "dilutes" the value of the car?

According to the official announcement from billionaire Pham Nhat Vuong's representative, the main reason for this decision is to reposition VF8 in the high-end car segment, protecting the product's brand value.

Initially, the introduction of VF8 into the luxury taxi service was seen as an opportunity for customers to experience a luxurious, modern and fully equipped car.

The decision to stop VF8's taxi business is considered the right decision to protect the value of VF8.

In Vietnam, taxis are still considered a public means of transport serving all classes, unlike in developed countries where luxury taxis serve a special group of customers.

Experts say that although in European markets or the UAE luxury cars such as Mercedes S-Class, BMW or even Lamborghini are used as taxis. In these countries, high-end taxis serve the needs of a separate, wealthy group of customers.

This is completely different from the Vietnamese market, where taxis mainly serve common travel needs.

In fact, luxury taxi services in Vietnam have not really developed strongly - Photo from VNS website

Traditional taxi companies like Mai Linh or Vinasun are very cautious when selling luxury cars. Although Vinasun also provides taxi services with Lexus LX 570 or Camry, most of these models are mainly for businesses, rarely for the general public.

Repositioning the effective taxi service vehicle segment

The VF8 is a large car with high operating costs but does not offer superior space compared to other models such as the VF e34 or VF5. With a price of 1.1 - 1.3 billion VND, twice as expensive as other electric cars such as the VF5, VF e34, maintaining a taxi service with the VF8 may not be cost-effective.

In Hanoi and Ho Chi Minh City, the fare of the high-class Green SM taxi service using VF8 is 21,000 VND/km, higher than other electric car models such as VF5 and VF e34.

However, with the operating costs and price of VF8, this service cannot bring sustainable profits.

Some say that withdrawing the VF8 from the luxury taxi service is a necessary step to maintain brand value and reaffirm the model's position in the luxury segment.

VinFast also said it will replace the VF8 with a smaller model, more suitable for taxi services, to optimize costs and improve economic efficiency.

M-Green, a new car line, will be developed to serve taxi service customers. At the same time, VinFast is also researching other Green car lines such as Hero Green, Neo Green and Limo Green, to create differentiation and optimize operating costs.

With these adjustments, many opinions believe that billionaire Pham Nhat Vuong's sudden change in policy not only protects the brand value of VF8, but also opens up a new direction in developing electric vehicles for taxi services, with the goal of bringing more sustainable economic efficiency.

Source: https://tuoitre.vn/tu-vu-vf8-dung-chay-xanh-sm-dung-o-to-sang-chay-taxi-lam-giam-gia-tri-xe-20241220164804428.htm