Auto sales jumped to 24,687 units in July, the second-highest monthly number this year behind only March.
The Vietnam Automobile Manufacturers Association (VAMA), which provided the data – excluding TC Motor and VinFast sales – said however sales were down 18.4% year-on-year.
The auto market has been going through a rough year amid low economic growth, with sales plummeting by 30% year-on-year in the first seven months to 162,000 units.
Toyota sold 3,800 cars, a 31% decline.
Vietnamese electric vehicle maker VinFast said it expects to start trading on the U.S. Nasdaq as soon as next week after its merger into a special purchase acquisition company (SPAC) was approved on Thursday.
On Thursday, shareholders of Hong Kong-based Black Spade Acquisition, a blank-check company, voted to approve the merger with VinFast.
VinFast, in a joint statement with Black Spade, said it would list on the Nasdaq under the ticker symbol VFS “on or around August 15”.
The remaining shareholders of Black Spade approved the merger on Thursday. In July, over 80% of the shareholders in the SPAC had opted to redeem their shares before the merger.
The SPAC merger will not raise new capital for VinFast but the company’s founder Pham Nhat Vuong has championed a U.S. listing as the carmaker seeks to expand in the U.S. market and is building a plant in North Carolina.
The two companies said the merger had valued VinFast at $23 billion. In comparison, the current market capitalization of U.S.-listed EV makers Rivian and Lucid are $21 billion and around $17 billion, respectively.
It leaves VinFast’s existing shareholders, including parent company Vingroup and Vuong, Vietnam’s richest man, with 99% of shares in the company.
“The voting results today are a vote of confidence in VinFast from Black Spade shareholders,” VinFast’s global head Thuy Le said in the statement.
VinFast had filed for an initial public offering on the Nasdaq last December, but in May announced plans to list through a merger with Black Spade.
Other EV makers including Faraday Future, Nikola Corp and Lucid have listed via SPAC deals but the market for such deals has faced increased scrutiny from investors and regulators.
VinFast has shipped around 3,000 EVs to the United States from its plant in Haiphong, Vietnam. It started to deliver its first VF8 EVs in March. It has not announced U.S. sales figures.
VinFast’s first-quarter revenue dropped 49% from the previous year and it posted a net loss of $598 million. In 2022, the company posted a loss of $2.1 billion. It has not yet made a profit.
Vuong, who is also chairman of Vingroup, Vietnam’s largest conglomerate, told Vingroup shareholders in May that VinFast expected to sell as many as 50,000 EVs this year and could break even as soon as the end of 2024.
The company has previously missed some of its internal delivery targets. It faces competition from established rivals led by Tesla, which have been driving down prices and bringing a range of new EVs to market.
Black Spade was founded by the private investment arm of Lawrence Ho, son of the late gambling mogul Stanley Ho.
Without his knowledge, luxury car dealer Phan Cong Khanh has been accused of selling a customer’s luxury car for VND24.5 billion ($1.04 million).
A person named Manh from the southern province of Kien Giang has complained to the police that he had lent his Brabus 800 to Khanh in early June to put on display at the launch of his dealership in Ho Chi Minh City.
But a few weeks later he found out that Khanh had sold the car to a buyer in HCMC for VND24.5 billion.
Brabus is a German high-performance automotive aftermarket tuning company.
The Brabus 800 is the upgraded version of the Mercedes AMG G63, and costs around VND30 billion in Vietnam.
Some vendors have also complained that Khanh owes them money for services they provided for the launch of K Supper, his luxury car dealership in District 1.
They include VND100 million for bouquets, VND25 million for renting a crane and some money for construction.
Mohamach Da Pha’s employee has also been accused of mortgaging a person’s car without consent.
The police said that in April Pha borrowed a VND1.8-billion BMW from a man named Son and offered to sell it.
But Son found out recently he had mortgaged his car for VND1 billion.
The HCMC police are investigating.
Khanh, a native of the Mekong Delta province of Ben Tre, has the reputation of selling the most luxurious cars in Vietnam.
In June, he entered the car dealership business in 2017 and opened his K Supper showroom in HCMC’s District 1.
He regularly posts photos of himself standing next to Rolls-Royce, McLaren, Lamborghini, Ferrari, and Porsche cars on social media, and writes about how young people can start a business and make money.
VinFast, the subsidiary automaker of Vietnamese conglomerate Vingroup, has announced it will hold a groundbreaking ceremony of its electric vehicle (EV) factory in North Carolina, the U.S., on July 28.
This will be the first EV manufacturing facility in the state and help contribute to the supply of this kind of vehicles in North America, accelerating the global green mobility revolution.
The facility will be built at the Triangle Innovation Point in Chatham County. Covering an area of approximately 1,800 acres, VinFast’s factory is designed to reach a capacity of 150,000 vehicles per year in Phase 1. The factory will consist of two main areas: production and assembly. The complex will also house supplementary supplier businesses.
The project has received basic permits to begin Phase 1 construction. When the manufacturing complex commences operations, VinFast’s factory will create an ecosystem of suppliers and help generate thousands of new jobs.
Le Thi Thu Thuy, CEO of VinFast Auto, said that the manufacturing facility in North Carolina is one of VinFast’s key projects. When it begins operations, the factory will be VinFast’s primary supplier of EVs to the North American market. The company also hopes the construction of the factory in Chatham County will contribute to advancing the clean energy economy in the U.S. and help to support North Carolina’s green mobility strategy.
The factory is expected to start production in 2025. Last year, VinFast was awarded a US$1.2 billion incentive package from the State of North Carolina for this project, along with critical financial support from the City of Sanford, Chatham County, and the Golden Leaf Foundation.
In addition to the factory, VinFast is accelerating its business and brand recognition in the US by expanding its retail store and service centre system, organising local test drives and displaying products events throughout California. These efforts will aid in bringing opportunities for customers to directly experience VinFast’s EVs.
Volvo Cars has announced a significant surge in sales for the month of June. The company reported selling a total of 66,379 cars worldwide, marking a 33% increase compared to the same period last year. A major contributor to this is the demand for Volvo’s fully electric vehicles, which experienced a fourfold increase in sales compared to June 2022. It’s worth noting that last year’s figures were adversely affected by supply chain constraints, leading to lower production. In June, Recharge models saw a staggering growth of 129%, accounting for an impressive 37% of all Volvo cars sold globally. Among the Recharge models, fully electric cars comprised 14% of the total sales.
During the first half of this year, Volvo Cars achieved sales of 341,691 cars, representing a notable 17% increase compared to the corresponding period in 2022. A significant contributing factor to this success is the company’s Recharge line-up, consisting of chargeable models with either fully electric or plug-in hybrid powertrains.
In Europe, Volvo Cars experienced a substantial sales surge of 70% in June, with 27,196 cars sold compared to the previous year. Recharge models accounted for 58% of overall sales in the region. Looking at the cumulative sales for the first half of the year, Volvo Cars witnessed a 23% increase in Europe, reaching a total of 146,943 cars sold.
Meanwhile, in the United States, Volvo Cars achieved a remarkable 53% increase in sales in June, with a total of 12,933 cars sold compared to the previous year. Recharge models were the driving force behind this growth, with a notable increase of 79%. Consequently, Recharge models accounted for 29% of total sales in the US. During the first half of 2023, Volvo Cars achieved sales of 59,750 units in the US, representing an 18% increase compared to the same period last year.
However, Volvo Cars faced a slight dip in sales in China, with 15,405 cars sold in June, representing a 7% decrease compared to the same month last year. Despite this decline, Recharge models still held a respectable 8% share of the total sales in the Chinese market. In terms of individual models, the Volvo XC60 emerged as the top-selling vehicle in June, with a total of 21,053 cars sold. This represents an increase from the previous year when 18,275 units were sold.
The XC40 followed closely behind, with sales reaching 18,170 cars, the XC90 also maintained a steady performance, with 9,895 cars sold. Volvo Cars’ sales growth, is particularly driven by the soaring demand for its fully electric vehicles.
Chinese manufacturer Wuling has introduced the cheapest electric vehicle models in Vietnam.
The newly-launched mini electric vehicle models were launched Thursday for prices starting at VND239 million ($10,139).
The Wuling Hongguang Mini EV, which is assembled in Vietnam’s northern province of Hung Yen, is one of the smallest electric vehicles in the country.
The four-seater, designed for urban transportation, can drive for 120-170 kilometers per charge, depending on the battery that users purchase. It takes 6.5-9 hours to fully charge a battery.
The car has a maximum designed speed of 100 kilometers per hour.
The inexpensive vehicle has one seven-inch screen for the driver to monitor the car.
Dealers are set to receive the cars starting this September.
Vietnam has cut car registration fees in half for locally-made or assembled cars as authorities hope against hope that the move will boost sales.
The 6-month cut takes effect July 1 and the fees will return to normal starting Jan. 1, according to a government decree issued Wednesday.
Registration fees are calculated based on car prices in each locality. The rates are 12% in Hanoi and Hai Phong, and 10% in HCMC.
Vietnam issued the same 50% cut for six months in 2020 and 2022 to boost consumption. The move caused sales to double in both cases.
The Ministry of Finance, however, said earlier that the cut might not be as effective this time since the economy is seeing a strong decline in industrial activity and exports amid high inflation and low GDP growth.
In the first five months, 113,500 auto units were sold, a 36% plunge year-on-year, according to the Vietnam Automobile Manufacturers Association.
The average age of automobiles in Vietnam is 5.7 years, or near a major maintenance milestone and requiring many replacement parts, according to experts.
Passenger cars usually have a warranty period of three to five years, and need a major overhaul after six to seven years of running.
With cars aged nearly 6 years, the demand for components and parts for maintenance, repair and replacement purposes will increase sharply in the near future.
At an auto parts show in Ho Chi Minh City in late June, Teoh Chee How, head of the Asia Pacific aftermarket division at ZF Aftermarket, a German seller of components and systems for cars, said: “In the next five years the number of new cars on the road will increase by 10%.”
“The average age of vehicles is near the time of overhaul,” How said. “That is why we consider Vietnam to be a very promising auto parts market and well worth investment.”
According to research by ZF Aftermarket, the total number of passenger cars in circulation in Vietnam is 2.5 million, and their average age is 5.7 years, compared with 12.5 years in the U.S. and 12 years in Europe.
Markus Wittig, head of business line passenger cars at ZF Aftermarket, said the biggest challenge facing the Vietnamese auto parts market is the lack of in-depth, methodical support and diagnostic tools for workers at independent repair centers.
The country’s annual automobile production capacity is 755,000, with foreign-owned plants manufacturing for 35% of them, according to the Ministry of Industry and Trade.
Imports of components for production and repair are worth around US$5 billion a year.
Honda Motor has initiated a recall of approximately 1.2 million vehicles in the United States after a potential problem was identified with the rearview camera image, as confirmed by the National Highway Traffic Safety Administration (NHTSA) on Friday.
The recall affects specific models including the 2018-2023 Odyssey, 2019-2022 Pilot, and 2019-2023 Passport. The issue stems from a faulty communication coaxial cable connector, which may result in the absence of the rearview camera image on the display.
To address this concern, Honda has previously extended the warranty for affected vehicles in 2021. The automaker revealed that it has received a significant number of warranty claims, totalling 273,870, associated with this matter from May 2017 to June of this year. Fortunately, there have been no reported injuries or fatalities connected to this recall.
Authorized dealers will resolve the issue by installing an enhanced cable harness between the existing display audio and vehicle terminal connections. Additionally, a straightening cover will be placed over the vehicle cable connector to establish a proper connection with the audio display unit.
Tata Motors is placing a significant emphasis on the electric vehicle (EV) sector with a series of product launches in a bid to substantially increase its market share by 2030. According to the company’s recently published annual report for the fiscal year 2022-23 (April-March), Tata Motors anticipates that EVs will account for 25 percent of its product portfolio within five years and reach 50 percent by 2030.
In the March quarter, Tata Motors achieved a major milestone by surpassing annual EV sales of 50,000 units, constituting 12 percent of its overall sales. Over the past three years, Tata Motors, as the leading player in India’s EV market, witnessed a remarkable surge in volumes, escalating from 1,300 units to over 50,000 units.
The company foresees a considerable surge in EV demand as more options become available to consumers. During the fiscal year 2023-24, Tata Motors aims to focus on achieving substantial volume growth, making strategic investments, maintaining healthy underlying unit economics, and remaining competitive in the market. N Chandrasekaran, Chairman and Non-executive Director, expressed confidence in the company’s future prospects, asserting that Tata Motors is rebounding after several challenging years and remains committed to fulfilling its financial obligations while contributing to a greener future.
Tata Motors presently boasts the widest range of EV offerings in India, encompassing hatchbacks, sedans, and sports utility vehicles (SUVs) catering to both premium and mass market segments. Moving forward, the automaker intends to capitalize on this strategic advantage by expanding its EV sales and after-sales network, as well as charging infrastructure throughout the country. By implementing these initiatives, Tata Motors aims to tap into the untapped potential and broaden its customer base.
Jaguar Land Rover (JLR), Tata Motor’s subsidiary, is also making significant strides in the EV domain. The company has set its sights on transforming Jaguar into a fully electric luxury brand, and its strategic plan is progressing as intended. Adrian Mardell, the interim CEO, announced that the first new all-electric Jaguar vehicle will be unveiled in 2024, with customer deliveries commencing in 2025. Later this year, JLR plans to commence pre-orders for the inaugural pure electric Range Rover. Despite the challenging market conditions, JLR remains committed to delivering on its “Reimagine” strategy and is confident in the unwavering support and dedication of its skilled workforce.
Prime Minister Pham Minh Chinh has asked the Ministry of Finance to halve registration fees for locally-made or assembled automobiles starting July 1.
A draft decree on the issue should be submitted to the Government for approval before June 15, he said.
The cut will be in effect until the end of this year to boost falling demand.
The registration fees are calculated based on car prices in each locality. The rates are 12% in Hanoi and Hai Phong, and 10% in HCMC.
The Vietnam Automobile Manufacturers Association (VAMA) said credit tightening and rising interest rates have diminished market liquidity, and automobile companies are struggling to cope with high inventories.
In the first four months VAMA saw 92,801 cars sold, down 30% year-on-year.
Experts have predicted that total vehicle sales this year will unlikely reach last year’s figure of half a million units.
Ample, electric vehicle (EV) charging solutions provider has introduced a technology known as modular battery swapping. This innovative approach aims to revolutionise the way EVs are charged by delivering a 100 per cent charge in under five minutes. Unlike traditional charging methods, which can be time-consuming, Ample’s battery-swapping system offers a fast and efficient alternative.
The key advantage of Ample’s technology lies in its modular design. By swapping out depleted batteries with fully charged ones, EV owners can achieve a complete charge within minutes. This speed rivals the refuelling time of conventional internal combustion engine vehicles, addressing a significant concern for potential EV buyers.
In addition to its efficiency, Ample’s battery-swapping system offers cost advantages. Compared to traditional fast-charging stations, the construction and installation of Ample stations are three to ten times cheaper. The lightweight and modular design eliminates the need for complex infrastructure, reducing overall costs.
Another notable feature of Ample’s technology is its compatibility with any electric vehicle. Unlike other charging solutions that require car manufacturers to modify their designs, Ample’s modular, swappable battery architecture can be seamlessly integrated into existing EV models. This compatibility ensures that all EV owners can benefit from the rapid charging capabilities without limitations.
Ample’s battery swapping stations are designed for rapid deployment and scalability. Their lightweight nature and minimal construction requirements allow for swift installation, making it possible to establish a city-wide network of stations within weeks. This rapid deployment ensures that EV charging infrastructure can keep pace with increasing demand and adapt to evolving needs.
Ample claims that its battery technology is future-proof and adaptive. The battery modules can accommodate any make, model, or driving profile, catering to various EV applications such as commuting, ridesharing, and delivery services. The modular design also allows for future improvements in battery technology, ensuring that vehicles on the Ample platform benefit from the latest advancements.
Ample’s battery-swapping stations employ advanced technologies like computer vision and secure wireless communication to facilitate a fully automated process. The station identifies the precise location of each battery module in the vehicle, allowing for seamless swapping. Once the discharged batteries are removed, they are charged and made ready for the next vehicle, ensuring a continuous and efficient charging cycle.
Gasoline and diesel prices on Monday gained for the first time since April 11.
The popular gasoline RON95 went up 2.33% to VND21,490 per liter.
Biofuel E5 RON92 rose 1.74% to VND20,480. Diesel increased by 1.70% to VND17,950.
Fuel prices globally have been rising by 0.73-3% in the last 10 days due to a production cut by OPEC+, concerns of the U.S. public debt, stalled manufacturing and high interest rates which could lead to an economic recession.
RON95 price went up 2.6% to $89.63 per barrel, and diesel rose 2.2% to $89.18.
Luxury carmaker Bentley is recalling its Continental GT First Edition W12 and W12 cars in Vietnam to fix a faulty water pump that poses a threat of fire.
Due to a design defect, the water pump could create a vacuum within the electrical area of the pump and cause liquid from the coolant system to permeate the housing of the water pump and damage the electrical circuitry which could cause a fire, it said.
The recalled vehicles were manufactured in 2018 and imported from the U.K.
Dealers of distributor CT Wearnes Vietnam are handling the recall, and it will take some 50 minutes to replace the faulty water pump.
A spokesperson for the British carmaker in Vietnam said if the engine management light lights up or smoke is detected, people should immediately stop the vehicle wherever it is safe to do so, turn off the ignition, evacuate the vehicle, and contact the nearest retailer immediately.
Bentley has an authorized dealer each in Hanoi and Ho Chi Minh City.
The Continental GT is a two-door sedan with a price-tag of at least VND18 billion (US$762,700) in Vietnam.
Mercedes has been dominating Vietnam’s luxury car market in recent years, but that could start to change this year as BMW lowers prices.
“We have always considered BMW a major competitor in most markets globally, but things are different in Vietnam,” said CEO Brad Kelly on the sidelines of the launch of the new Mercedes GLC models in Ho Chi Minh City recently.
He added that in Vietnam, BWM does not yet seem to threaten Mercedes in terms of sales.
Between 2019 and 2022, Mercedes secured and average of around 60% of Vietnam’s total luxury car market share, and the German brand last year sold over 7,900 units alone.
Its competitor from the same country, BMW, only secured fourth place last year – behind Lexus and Volvo – with the sale of 973 units.
However, Thaco, the Vietnamese company that distributes BMW cars, has been assembling several BMW models, such as the 3 Series, the 5 Series, and the X3 and X5.
This implies that BMW wants to reduce its retail prices in Vietnam as assembling the vehicles locally will bring down costs.
The strategy seems to have succeeded as the BMW X3s assembled last year are now selling from VND1.8 billion ($76,700), compared to the new Mercedes GLC price tag of VND2.3 billion.
Thus, the cheapest luxury car in Vietnam now belongs to BMW, not Mercedes.
The rising competition with BMW therefore will benefit Vietnamese customers and the local auto industry, and it will motivate Mercedes to come up with more new ideas, Kelly said.