Vietnam's EV ownership will see 'strong growth' in 2023, says new report

Vietnam's electrical conveyance marketplace appears poised for accelerated enlargement successful the adjacent decade, but determination could beryllium important headwinds blunting that growth.

According to BMI Research, a Fitch Solutions research unit, rider EV income successful the state is expected to astatine slightest treble this year.

"In 2023, we expect rider EV income to grow by 114.8% year-on-year to scope astir 18,000 units," said BMI's study published Thursday.

Specifically, income for artillery electrical conveyance (BEV) could surge by 104.4% compared to the erstwhile twelvemonth to astir 17,000 units, the study said. Plug-in hybrid vehicle, oregon PHEV, could leap nine-fold year-over-year to astir 1,100 units.

"We presently expect rider EV income successful Vietnam to mean yearly maturation of 25.8% implicit 2023-2032 to scope an yearly income measurement of astir 65,000 units, up from 8,400 units successful 2022," said BMI.

The penetration complaint for rider EVs — defined arsenic rider EV income arsenic a percent of the country's full rider conveyance income — is acceptable to summation to 13.6% by 2030. That's a immense leap from past year's 2.9%.

The Vietnam Automobile Manufacturers Association predicts that EV ownership volition scope 1 cardinal by 2028, and 3.5 cardinal units by 2040.

Electric vehicles lone accounted for a tiny stock of the rider car marketplace successful Vietnam past year. Sales of rider cars successful the Southeast Asian federation were astatine astir 284,000, "with lone a fewer 1000 of them being electrical cars," according to Statista.

However, a beardown EV maturation is expected to beryllium fueled by accrued deliveries of VinFast vehicles arsenic the section EV shaper steps up accumulation passim 2023.

"The section accumulation of VinFast, Wuling HongGuang, Skoda and Hyundai-branded EVs implicit our 2023-2032 forecast play volition thrust beardown maturation successful the market," said BMI.

Vietnam's rider EV marketplace is presently dominated by VinFast, which holds much than 50% marketplace stock successful 2022, said BMI. The remainder of the marketplace is held by Chinese brands.

Increased proviso of affordable China-made EVs volition besides assistance boost growth.

The affordable mini EV nether Chinese marque Wuling HongGuang could assistance assistance the rider EV segment, said BMI. The Wuling Hongguang Mini EV is priced from 239 cardinal Vietnamese dong ($10,065). In comparison, VinFast debuted a fund electrical car astatine $23,000 for the Vietnam marketplace successful April.

The probe steadfast pointed retired that accrued EV accumulation successful the Association of Southeast Asian Nations — comprising of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — to boost growth.

In January, Vietnam's authorities said it volition proceed to exempt import tax connected wholly built-ups cars from the 10-member bloc until the extremity of 2027.

Still, BMI expects EV adoption successful Vietnam to beryllium pulled down by debased incomes and a deficiency of incentives, the study said without elaborating.

The artillery leasing concern model, which allows consumers to rent batteries erstwhile they bargain caller EVs, could assistance users little expenses. This measurement volition progressively pull taxi fleet operators, said the report.

In April, taxi fleet relation Green SM launched a axenic EV taxi service successful Vietnam with VinFast models.

"We expect this, and imaginable akin developments from different section taxi fleet operators, to enactment EV adoption successful Vietnam arsenic it volition rise the consciousness of EVs among citizens," said the probe company.

The existent charging infrastructure could besides bounds maturation successful Vietnam's electrical conveyance market.

Most of the charging stations are presently catered for electrical two-wheelers, oregon bikes and scooters. BMI expects much players to participate the marketplace from 2023 to boost the EV charging network.

Local EV charging relation EBOOST has pledged to grow Vietnam's charging web and volition deploy much charging points.

Taiwanese electronics giant Foxconn said it volition put $250 million, partially to physique an EV charging instrumentality and constituent accumulation works successful Vietnam, according to Taiwanese media.

"This would assistance facilitate a much accelerated enlargement of the local, and the wider Southeast Asia determination EV charging networks," said BMI.