Following in the footsteps of Beijing, Wuling, Haima or Haval, BYD – the Chinese car company will also open for sale in the Vietnamese market in the near future. Currently, this company’s first dealership located in Hanoi has completed the final preparations and is expected to go into operation from May 2024.
Notably, unlike other “compatriot” car companies, BYD, in its second return to the Vietnamese market, will likely choose a different path, with a “new energy” product range. In which, pure electric vehicles play a key role.
BYD will be one of the next Chinese car manufacturers to enter the Vietnamese market
In fact, this is not a surprise, because the strength of this Chinese car company lies in battery technology, and it is electric cars that are the “launching pad” that makes BYD a big name in the auto industry. However, the problem is that electric cars in Vietnam are currently only in the “wild” stage and everything is still too new. Therefore, BYD’s decision to return to the Vietnamese market at this time, and at the same time choosing the main product range of electric vehicles to compete, is making many experts skeptical. Because, facing the Chinese car company, there will be many barriers.
Infrastructure and support policies for electric vehicles
The fact that BYD surpassed “tycoon” Tesla to occupy the position of the world’s number one brand in the electric vehicle segment in the last two years can be considered a big surprise for the auto industry. However, there is one thing that few people pay attention to: the majority of BYD car sales come from the home market. Data quoted from sheet Wall Street Journal (USA) shows that in 2023, this car company achieved a total sales of about 3.02 million vehicles. However, there are nearly 3 million cars sold in China and only about 243,000 cars sold in foreign markets.
This shows the fact that BYD electric vehicles are still heavily dependent on the domestic market. A place with a population of over 1 billion people, with the Chinese Government’s “toothless” support policies for electric vehicles (from support policies, tax exemptions and discounts, to infrastructure construction support). charging station…).
The charging station system for electric vehicles in Vietnam is not as popular as in China, it is predicted that there will be great difficulties for BYD electric vehicles.
This is also the reason why many people are skeptical about BYD’s ability to succeed when this car company decided to bring a range of electric vehicle products to the Vietnamese market. Because, unlike China or some major auto markets that have started the trend of converting to electric vehicles for a long time, Vietnam is currently only in the beginning stages. There are no or very few price support policies.
Support policies for charging station infrastructure are also lacking. In fact, the number of charging stations in Vietnam has been increasing quite rapidly in recent years. However, in reality, most of these charging stations are owned by VinFast and up to now only serve VinFast car users. Meanwhile, public charging station models built and operated by private individuals like China’s are still not popular in Vietnam. Besides EV One, which is trying to explore the market in small quantities, there are still no other units “embarking” on this segment. This will clearly be one of the biggest challenges for BYD.
Customer psychology is “wary” of Chinese cars
Many Vietnamese people who bought and used Chinese cars from 2005 to 2015 still feel “haunted” by the car quality, as well as the poor after-sales service of car brands from this market. And there is the fact that the “shy” mentality from old “stains” in the past is also one of the major barriers, making it difficult for Chinese car manufacturers in their ambition to conquer the Vietnamese automobile market. .
The MG brand (Morris Garages) can be considered an example. Opened for sale in the Vietnamese market since 2020 with a product range that is eye-catching and superior in technology compared to many car models positioned in the same segment, however, after nearly 4 years, MG sales are still “flat”. . To be competitive, the company has had to repeatedly apply strong discount programs; Even some models that could not find a foothold had to be discontinued.
Despite being more open, there are still many car buyers in Vietnam who are still “hesitant” about Chinese cars.
Besides its poor appeal, it cannot be denied that one of the other reasons why MG cars are “struggling” in Vietnam comes from the psychology of Vietnamese customers, who are “wary” of Chinese cars. Because, despite being a world-famous car company and originating from the UK, MG has been owned by SAIC Motor Group (China) since 2007. This makes Vietnamese people no longer have much “sympathy”. ” with MG branded vehicles.
Not to mention, for BYD alone, the “problem” may be even more difficult when the Chinese car company chooses its main product range as electric vehicles. This type of car is still quite new and users still have doubts and are not really ready.
“Controversy” about car quality
Another problem that may prevent BYD from finding a foothold in the Vietnamese market is the issue of vehicle quality.
Up to now, the Chinese car company has not yet “finalized” the list of cars it will officially sell, nor has it organized display and test drive activities, so it cannot confirm the quality of the cars BYD is about to bring to Vietnam. . However, recently, BYD has been continuously entangled in many “controversies” about vehicle quality in markets outside of China.
Recently, many BYD car models have continuously been involved in “controversies” about quality in markets outside of China.
Typically in Thailand, many users have continuously complained about peeling paint and plastic, and even many cases of BYD cars emitting smoke while charging. In Israel, these Chinese brand cars also continuously have errors in warping the roof rack when loading items. Or most recently, at the end of 2023, a series of BYD cars reported mold appearing inside the interior compartment.
Obviously, continuous problems with car quality will more or less make Vietnamese people (who are already “bored” with Chinese cars) become even more cautious with BYD cars. And if this “problem” cannot be solved, it will be very difficult for the Chinese car company to succeed in the Vietnamese market.
