Vietnam’s electric and hybrid vehicle market is experiencing rapid growth, with industry experts forecasting a 25-30% increase by 2025.
By the end of this year, electric and hybrid vehicles are expected to account for 15-20% of total passenger car sales, driven by models from VinFast, Toyota, Honda, Hyundai, Kia, BYD, and MG. The most dynamic segments include small electric cars, affordable EVs, and mid-range hybrids.
According to the Oto.com.vn Market Research Department, key factors fueling this growth include government incentives, expanding EV charging infrastructure, new model launches, and rising consumer awareness. In 2024, Vietnam saw a sharp rise in green car sales, with 97,000 electric and hybrid vehicles sold, representing over 22% of new passenger car sales. VinFast dominated the market with 87,000 EVs, followed by Toyota (5,350 hybrid cars), Suzuki (2,515), and Honda (1,905).
The Vietnamese government is actively promoting EV adoption as part of its commitment to carbon neutrality by 2050. Incentives include a 0% registration fee for battery electric vehicles (BEVs) until February 2025, followed by a 50% reduction compared to gasoline and diesel cars until February 2027.
Major enterprises, including VinFast, V-Green, Petrolimex, PV Power, and EVN, are expanding the country’s EV charging network, addressing a key barrier to adoption. Consumer interest is also surging, as seen in the launch of VinFast’s mini SUV VF3 in May 2024, which attracted nearly 27,700 deposits in just 66 hours and generated over 30,000 Google searches. Additionally, Chinese electric car brands are entering the market, increasing competition and accessibility.
To achieve the ambitious 25-30% market share goal, continued government support, investment in infrastructure, and further research and development will be essential. Plans to subsidize electricity prices for EV charging stations are among the measures being considered to accelerate Vietnam’s transition to green mobility.
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Source: Vietnam Insider