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Tag: Auto

  • Vietnam needs $14B to develop EV charging stations

    Vietnam needs $14B to develop EV charging stations

    Vietnam will need nearly US$14 billion to develop a network of charging stations to develop a green transport system, said insiders.

    This is expected to reduce greenhouse gas emissions, and create great tremendous opportunities for the electric vehicles (EV) market.The transition to EVs is a huge effort toward Vietnam’s net zero goal and environmental protection, and it will also boost the national economy, especially in reducing oil import costs and creating millions of jobs.

    According to a report from the World Bank, for EVs to become mainstream, especially among first-time car buyers, the charging station system plays a key role. It is estimated that Vietnam needs $2.2 billion by 2030 to build a network of public charging stations, and this figure will increase to $13.9 billion by 2040, and $32.6 billion by 2050 to meet most of the population’s EV demand.

    With the rapid development of EV technology and the trend towards green transportation, the demand for this type of vehicles is expected to increase strongly in the near future. It is predicted that more than 2.8 million EVs will be consumed from 2024 to 2035, and another 3 million in the 2036 – 2050 period if the development of the charging station network is accelerated.

    Major manufacturers such as VinFast have pioneered in this field, not only investing themselves but also implementing the franchise model that enables businesses and people to participate in developing the charging network. This model helps promote not only the use of EVs but also the sustainability of the EV industry in Vietnam.

    Public-private partnership models are also evaluated as a key for luring investment in charging stations. Electricity companies, fuel distributors, and specialized charging service providers can also contribute to the scheme.

    Insiders said to further promote the scheme, the Vietnamese Government needs to have favorable and clear policies that facilitate the engagement of the private sector. This can be achieved through financial and non-financial incentives and the formation of a clear roadmap for EV adoption with strict technical standards for charging infrastructure.

    International studies have shown that subsidies for developing charging infrastructure are 5-6 times more effective than subsidies for purchasing EVs. This demonstrates that if the Government focuses on building charging stations, Vietnam can accelerate the transition to EVs while reducing the dependence on fossil fuel energy sources.

    Assoc. Prof. Dr. Dam Hoang Phuc from Hanoi University of Science and Technology said a clear mechanism will attract investors, thereby driving the development of Vietnam’s charging station network.

    Meanwhile, Nguyen Thi Phuong Hien, Deputy Director of the Institute of Transport Strategy and Development, said strong policies on energy transition are now available, but there is still a shortage of support policies for charging infrastructure development. Given this, investing in charging stations is an essential step for the Government to effectively boost the transition to EVs and green transport.

  • Thailand loosen EV production regulations

    Thailand loosen EV production regulations

    Thailand’s Board of Investment (BoI) has announced that the government would extend deadlines for electric vehicle (EV) manufacturers to meet domestic production quotas, addressing weak local market demand.

    Under the current EV 3.0 incentive program, manufacturers must produce one locally assembled EV for every imported EV or a 1:1 ratio.

    Companies failing to meet this quota in 2024 will face a stricter 1.5:1 production-to-import ratio by 2025.

    The policy aims to encourage automakers to establish EV assembly plants in Thailand, which has attracted EV-related investments totaling 80 billion THB ($2.3 billion).

    To further support the struggling auto industry, the government will extend domestic EV production requirements to the end of 2027. This move comes as Thailand grapples with stagnant market conditions caused by slow economic growth and tight credit policies.

    The Federation of Thai Industries (FTI) recently revised its 2024 automobile production forecast down to 1.5 million units, the lowest since 2021, citing weak domestic demand.

    During January and October, total car sales in Thailand dropped 26.2% year-on-year to 476,350 units, with pickup truck sales plunging 43%.

    The decline is attributed to stricter auto loan regulations amid concerns over rising non-performing loans and Thailand’s high household debt.

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  • BYD’s luxury EV brand Denza launches in Singapore

    BYD’s luxury EV brand Denza launches in Singapore

    Chinese auto giant BYD’s premium electric vehicle brand Denza has made its official debut in Singapore with two variants, both costing over US$200,000.

    According to Singapore-based car selling platform Motorist, the brand launched its first model in the city-state, the D9 large multi-purpose vehicle, on Thursday.

    It comes in two variants: the D9 Elite, which has a price tag of S$296,888 (US$227,500), and the D9 Grandeur priced at S$341,888 (US$262,000). Both prices include Certificate of Entitlement, a permit required to own and use a vehicle in Singapore.

    Some 300 orders have been placed for the D9, according to a BYD representative cited.

    Another Denza model, the Z9 GT sedan, is planned to debut in the city-state by mid-2025.

    BYD will directly distribute Denza vehicles and has named two existing partners, Vantage Automotive and Harmony Auto, as its dealers.

    The Singapore launch came as the brand is looking to expand to large markets in the Asia-Pacific region.

    Liu Xueliang, BYD’s Asia-Pacific sales general manager, said at the Thursday launch event that Denza will launch in Thailand later this year and in Australia, New Zealand, Indonesia and Malaysia in 2025.

    Apart from Denza, Singapore recently saw the launch of Zeekr, another luxury EV brand, in August and is expected to welcome EV maker Neta by the end of 2024. Both brands are from China.

    While more Chinese automakers are seeking to enter Singapore, BYD has been dominating the country’s car market, The Straits Times reported.

    In the first half of 2024, it registered 2,587 new vehicles, accounting for 13.9% of the market, and is the best-selling brand when considering only authorised dealer registrations.

  • BYD recalls 97,000 EVs over fire risk error

    BYD recalls 97,000 EVs over fire risk error

    China’s largest electric vehicle manufacturer BYD is recalling 97,000 units due to a technical error that poses fire risks.

    The Chinese automaker is recalling Dolphin and Yuan Plus EVs produced in China between November 2022 and December 2023 for containing a faulty steering control unit, according to a statement from the State Administration for Market Regulation as reported by Reuters.

    BYD dealers will address the issue at no cost to customers.

    According to the China Association of Automobile Manufacturers, the recalled models were its best-selling in 2023 and accounted for a quarter of the 3 million cars it sold.

    BYD, backed by American investor Warren Buffett, has been rapidly expanding overseas since last year, with distribution outlets set up in Southeast Asia, the Middle East and Africa.

  • Thailand approves budget for EV subsidy, offering buyers up to $3,000 per vehicle

    Thailand approves budget for EV subsidy, offering buyers up to $3,000 per vehicle

    The Thai cabinet has approved a budget allocation to fund a subsidy program’s second phase, which offers electric vehicle buyers up to 100,000 baht (US$3,070) per vehicle.

    Under the second phase of the subsidy program called EV 3.5, running from 2024 to 2027, EVs priced less than 2 million baht with batteries of 50 kWh or larger will receive a subsidy of 50,000-100,000 baht per vehicle, and those with smaller batteries will receive 20,000-50,000 baht per vehicle.

    Jirayu Huangsab, an advisor to the Prime Minister, said the budget allocation, amounting to 7.12 billion baht, will be used to subsidize buyers of electric vehicles and motorcycles who have already purchased their vehicles but not yet applied for the government EV subsidy under the EV promotion measures.

    Since the implementation of the EV promotion measures, subsidies have been disbursed for 55,000 EVs, totaling 6.87 billion baht. A budget of more than 5 billion baht is awaiting disbursement.

    In the previous first phase of the program, called EV 3.0, the Excise Department provided subsidies of up to 150,000 baht for EVs priced less than 2 million baht, and up to 18,000 baht for electric motorcycles priced less than 150,000 baht.

    The government provides these subsidies directly to car manufacturers. Once EV buyers register their vehicles, they can submit a request to the manufacturer to claim the subsidy.

    Based on these incentives, various manufacturers have invested to establish

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  • Vietnam auto ownership triples in 13 years

    Vietnam auto ownership triples in 13 years

    Car ownership tripled in 13 years to 63 vehicles per 1,000 people last year, according to the Ministry of Industry and Trade.

    The number of registered automobiles reached 6.31 million by the end of last year, it said in a recent report.

    Last year 408,500 new vehicles were registered.

    The ministry expects annual sales to top one million by 2030 and five million by 2045.

    In 2022 record sales of 500,000 units propelled Vietnam into the list of the four largest auto markets in Southeast Asia along with Thailand, Indonesia and Malaysia.

    The ministry wants at least 80% of autos to be green by 2045 and the same ratio for domestic production.

    Now around 40% are imported as completely-built units, according to the Vietnam Automobile Manufacturers Association.

    The ministry wants supporting industries to manufacture key auto components such as transmissions, gearboxes, engines, and bodies.

    For now local firms are labor intensive and only capable of producing simple parts, it admitted.

    Thailand has 710 tier-one and 1,700 tier-two suppliers, while the comparable numbers for Vietnam are only 33 and 200.

    “To make good cars, we need quality materials for manufacturing as well as strong capabilities in robotics and quality control,” the ministry added.

  • Volkswagen offers $20K discount

    Volkswagen offers $20K discount

    German auto brand Volkswagen has cut the prices of three models in Vietnam by VND140-500 million (US$5,700-20,300) this month.

    The Teramont now costs VND2 billion, down VDN500 million, or 20%, from its original price tag.

    The full-size SUV, which is imported from the U.S., has high-end entertainment features such as an 11-speaker audio system and 8-inch screens.

    The Teramont X, which starts at around VND2 billion, comes with a discount of VND99-130 million depending on locality. It is imported from China.

    The Touareg, imported from Slovakia and priced at up to VND3.05 billion, is being sold at discounts of VND134-182 million.

    Volkswagen announced the discounts after major brands such as Honda, Toyota, Nissan, Subaru, and Suzuki all cut their prices.

    Vietnam Automobile Manufacturers Association members’ sales rose by only 1.1% year-on-year in the first seven months to 163,800 units.

  • Chinese luxury EV maker Zeekr enters Vietnam

    Chinese luxury EV maker Zeekr enters Vietnam

    Zeekr, Chinese conglomerate Geely’s premium electric vehicle brand, will be distributed in Vietnam by transport services provider Tasco.

    Following an agreement signed Monday the EV maker joined the list of auto brands distributed by Tasco, which also includes Lynk & Co and Volvo, two other Geely subsidiaries.

    Tasco has not disclosed when or which Zeekr models will be sold in the market, nor has it confirmed whether it will build charging infrastructure for Zeekr vehicles or outsource this to a third party.

    Zeekr was established in 2021 and is positioned as a luxury EV manufacturer that focuses on driving assistance and safety technologies.

    It targets high-end customers and competes in the premium EV segment, but offers competitive prices. It recently expanded to Europe, the Middle East and Southeast Asia.

    The brand offers seven models in China, all based on Geely’s Sustainable Experience Architecture EV platform.

    Zeekr vehicles sold in Vietnam will be imported from China, where the company has its only plant.

    Other Chinese EV brands that have entered Vietnam within the last year include BYD and Lynk & Co.

    Three others, Omoda, Jaecoo and Aion, are expected to launch in the fourth quarter.

    VinFast, the only domestic producer, dominates the EV market in Vietnam with a wide range of products and the largest network of charging stations.

  • Indonesia encourages people to embrace EVs​

    Indonesia encourages people to embrace EVs​

    Indonesian Transportation Minister Budi Karya Sumadi is encouraging more people to embrace electric vehicles (EVs) in their lives as the country wishes to boost its e-mobility adoption.

    However, the minister admitted that convincing people to use EVs could be hard as they were still pricey at this time. Promoting green transport should also start as soon as possible so people will get used to riding EVs, according to Budi.

    He said this is a grand idea that will certainly benefit all, particularly for the future generations. But it is not an easy task.

    He also said he hopes that there will be a rise in the EV lifestyle, although electric cars and two-wheelers are still expensive.

    Indonesia is aiming to reach net zero emission by 2060 or sooner. The country has set a goal to have 2 million electric cars and 13 million electric two-wheelers on its roads by 2030.

    The government earlier this year reported that Indonesia had recorded 144,547 units of EVs as of May 2024.

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  • Gasoline hits 5-week low

    Gasoline hits 5-week low

    Gasoline prices on Thursday fell to the lowest since June 20 in its third consecutive week of decline.

    The popular fuel RON95 dropped 1.25% to VND22,880 ($0.90) per liter.

    Biofuel E5 RON92 declined by 1.22% to VND21,900.

    Diesel fell 1.51% to VND20,190.

    Globally fuel prices in the last seven days were affected by expectations of a ceasefire deal between Israel and Hamas, a stronger U.S. dollar, and declining oil demand in China compared to last year, according to regulators.

    Gasoline fell by 1.6-1.7% globally and oil dropped 1.8-3% in the period. RON95 is now at $95.6 per barrel and diesel at $97.5.

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  • VinFast VF 5 Vietnam’s most popular car by wide margin

    VinFast VF 5 Vietnam’s most popular car by wide margin

    VinFast sold 13,000 units of its VF 5 electric car in Vietnam in the first half of the year, making it the top seller in the market.

    A person familiar with the matter said that 20,000 VF 5s were sold globally.

    Mitsubishi Xpander was the second most popular car in Vietnam with 7,773 units, followed by the Ford Ranger, which sold almost exactly the same number.

    But analysts said it is still early to decide if VinFast has won over Vietnamese consumers with the crossover VF 5 as a large number were bought to be used as taxis and ride-hailing vehicles.

    “Eventually all car manufacturers want to sell to retailers, not taxi companies,” an analyst who asked not to be identified said.

    We are making efforts to convince retail consumers to buy the VF 5 by offering personalized color choices and other incentives.

    Many ride-hailing drivers buy the VF 5 for its affordable price and the fact that electricity is cheaper than gasoline.

    Overall, 154,265 cars were sold in the first six months, down 7% year-on-year, according to data from the Vietnam Automobile Manufacturers Association and Hyundai Thanh Cong, which sells Hyundai cars.

    VinFast does not release data by market but said it delivered 21,800 units globally, down 8% year-on-year.

  • Malaysia encourages use of EVs

    Malaysia encourages use of EVs

    The Malaysian government has included the adoption of electric vehicles (EVs) in its National Energy Transition Roadmap (NETR) towards the goal of EVs accounting for 15% of all vehicles sold by the year 2030, rising to 80% by 2050.

    The current import duty and excise duty exemption for fully-imported (CBU) EVs has been extended to December 31, 2025, and EV owners will also continue to enjoy exemption from road tax until the end of next year.

    They will also enjoy a lower tax rate in 2026, after the exemption expires, that will be based on the power output of their EV. When unveiling the new structure, Transport Minister Anthony Loke said it was 85% lower vis-a-vis petrol powered vehicles.

    To encourage the growth of the EV charging network in Malaysia, the government is offering individuals 2,500 MYR (US$530) in yearly income tax relief through to 2027 for the installation, rental, and purchase of EV charging equipment or subscription fees.

    Besides, the country will offer up to 2,400 MYR in tax return to encourage individuals to adopt electric-powered motorcycles. However, this incentive has only been announced for the 2024 assessment year and it is only available for individuals earning no more than 120,000 MYR annually.

    Companies investing in the assembly or manufacturing of energy efficient vehicle (EEV) including hybrids and electric or components for such vehicles are eligible for income tax exemption of 70% or 100% on statutory income respectively for a period of five or ten years.

    Companies investing in green technology services involving EVs such as installation, maintenance, repair of EV charging equipment, EV infrastructure and charging stations are eligible for a 70% tax exemption for three years from the start of their operations.

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  • VinFast ranks second in EV sales in Southeast Asia

    VinFast ranks second in EV sales in Southeast Asia

    According to the research firm Counterpoint Research, EV sales in the region more than doubled in the January to March quarter from a year before. Sales of ICE cars,meanwhile, slid by 7%.

    “Vietnam saw an even more impressive growth, with BEV (battery electric vehicle) sales increasing by more than 400%, contributing to nearly 17% of regional sales,” the firm said.

    “As Japanese and Korean automakers, who dominate conventional vehicle sales, lag in EV adoption, Chinese OEMs (original equipment manufacturers) are stepping in to fill the gap,” said Counterpoint analyst Abhik Mukherjee.

    “Over 70% of EV sales in the region are from Chinese brands, led by BYD,” he said. In the first quarter of last year, 75% of all EVs sold in Southeast Asia were made by Chinese car makers.

    Thailand, Southeast Asia’s second-largest economy, where Chinese car makers have committed more than US$1.44 billion to set up new EV production facilities, is leading the charge.

    The regional auto manufacturing hub where Japan’s Toyota Motor and Honda Motor have a major presence accounted for 55% of all Southeast Asia’s EV sales in the first quarter, with the segment growing 44% compared to last year.

    U.S. electric carmaker Tesla saw its market share in the region drop two percentage points to 4% in the first quarter, in spite of its sales growing 37% in the same period.

    A number of Southeast Asian countries, including Thailand and Indonesia, have rolled out incentives to stimulate EV demand and attract new investments – a call answered by Chinese car makers locked in a bruising price competition at home.

    “Southeast Asia is becoming a major expansion region for Chinese OEMs,” Mukherjee said.

  • Citizens’ deposits at banks reach new record high

    Citizens’ deposits at banks reach new record high

    Citizens’ deposits reached a new historic peak of VND6.676 quadrillion (US$262.2 billion) as of the end of March, according to the State Bank of Vietnam.

    This marked a 2.2% growth from the end of 2023.

    Meanwhile, corporate deposits fell 3.1% to VND6.6 quadrillion in the same period .

    After a period of declining interest rates that began last March, many banks have started to raise deposit interest rates since May.

    Analysts expect a rise in deposit interest rates by 0.5 to 1 percentage point, reaching around 7% per year in the year’s second half.

    However, the rates are unlikely to return to the high levels seen at the end of 2022, following a bank-run incident that resulted in a private lender being placed under central bank control.

    Credit growth has only reached 2.4% this year, failing to meet the targets of 5% for the first half and 15% for the entire year, which analysts attribute to a sluggish real estate market.

    The local real estate sector has experienced a significant downturn, leading to major developers facing challenges in repaying debt, including bond interest and principal, due to liquidity constraints and decreasing property values.

    The situation escalated at the end of 2022, following the arrest of Truong My Lan, Chairwoman of Van Thinh Phat group, who is on death row for multiple financial frauds.

    The arrest was part of Vietnam’s anti-corruption campaign, which intensified in late 2021.

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  • VinFast recalls over 2,000 EVs

    VinFast recalls over 2,000 EVs

    VinFast is recalling 2,097 electric vehicles to fix various technical issues.

    Some of the VF e34 and VF 5 Plus cars produced between September 2023 and April 2024 face the threat of bolts securing the upper cover of the high-voltage battery becoming loose, leading to a potential reduction in the water resistance.

    This issue affects 23 VF e34 and 131 VF 5 Plus units. VinFast will inspect and tighten the bolts and replace the high-voltage battery if needed.

    VF 6 Plus vehicles produced between March 18 and April 9 this year have a potential defect that could cause the brake fluid hose connectors to crack, leading to possible brake fluid leakage.If the brake fluid drops below the minimum threshold, a warning will appear on the control screen, and the braking system’s effectiveness will be reduced. The number of p otentially affected vehicles is 47.<

    VinFast will inspect and replace the brake fluid hoses in the affected vehicles free of charge.

    In VF 8 and VF 9 (Eco and Plus) cars manufactured between August 2022 and March 2024, incorrect airbag types might have been installed in certain places.

    After approximately 10,000 kilometers of use, an airbag warning and inspection request may appear on the screen.

    If the airbags are not of the correct type, they may not deploy in the event of a severe collision under certain conditions.

    In all, 1,134 VF 8 Eco and VF 8 Plus vehicles and 762 VF 9 Eco and VF 9 Plus vehicles are being recalled.

    VinFast has reported these issues to the Vietnam Register and will individually notify vehicle owners, asking them to bring their vehicles to authorized service centers.

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