The world’s largest electric vehicle company enters Vietnam: We do not compete with VinFast

“BYD admires VinFast very much, because they have pioneered bringing electric vehicles to Vietnam, helping users access and better understand this type of vehicle. We do not compete but want to join hands with VinFast to develop electric vehicles. , because at this time the market is just emerging,” said Mr. Liu Xue Liang, General Director of BYD Asia-Pacific’s automobile division, on April 25 at the company’s headquarters in Shenzhen, China during a meeting with Vietnamese media.

Meanwhile, CEO of BYD Vietnam, Mr. Ouyang Xiaocheng, said that the more brands there are, the more attractive the Vietnamese market is.

The world’s best-selling electric car company is completing the final stages to launch to Vietnamese customers in June, with a showroom system in Hanoi, Ho Chi Minh City and a near target of 20 provinces and cities across the country. Distributing this car line in Vietnam is BYD Auto Vietnam company, 100% capital of BYD China.

BYD (Build Your Dreams) was born in 1995, which is known as a manufacturer of batteries for electronic devices and vehicles. Along with CATL, two Chinese companies dominate most of the world’s battery industry. BYD has been involved in car production since 2003, starting with gasoline cars, and by 2022, it will abandon gasoline cars and only have electric and hybrid cars (new energy cars). In 2023, BYD will be the best-selling electrified vehicle company in the world, with sales of more than 3 million vehicles globally, of which nearly 2.6 million are in China and 400,000 vehicles in other markets, according to data from EV-Volumes (under JD Power). Among the 3 million vehicles, the ratio of pure electric vehicles (BEV) and pulg-in hybrid vehicles (PHEV) is 50-50.

When entering Vietnam, BYD will become the second popular electric vehicle company with a diverse product range, next to VinFast. Previously, the market had Wuling but only one pure electric product, Mini EV, located in the segment with very small capacity. So, attendance. BYD is expected to turn the Vietnamese electric vehicle market into a true playground with many options for customers.

When launched here, the company will introduce 3 car models: the small hatchback Dolphin, the small crossover Atto 3 (between sizes B and C) and the medium-sized sedan Seal (between sizes C and D). By the end of the year, three more car models may return to the country: the Han D-size sedan, the Song hybrid crossover and the Tang mid-size crossover. Because of proactive investment and proactive supply, product plans can also change depending on the level of acceptance by Vietnamese users.

All products are currently imported from China. The company plans to build a factory in Vietnam, but has not disclosed the specific roadmap.

The company has not yet finalized the product pricing plan but revealed that it will be competitive with gasoline cars in the same segment. BYD representative also said that the company does not look at VinFast’s prices to price its products, but wants to target gasoline car models. Transitioning from gasoline cars to electric cars is BYD’s goal, which is similar to the goal of the Vietnamese electric car company.

To reach customers, BYD chooses to go through the product itself, without developing charging infrastructure like VinFast. Customers who buy cars in the early stages can charge at home, fast charging stations at dealers and third parties. Explaining this, BYD believes that this will be a very unique business, an opportunity for charging station suppliers. The company believes that if the market receives it well, the infrastructure will automatically develop, “if there is demand, there will be supply”, as the company has done in other markets.

Also by choosing this approach, the world’s largest electric car company does not put pressure on sales and believes that when customers choose a car, they will have to calculate a reasonable route for proactive charging. However, sources of VnExpress said that the company plans to sell about 5,000 cars in the second half of 2024, or about nearly 900 cars/month, this is a very challenging number for a new brand, originating from China and in the electric vehicle segment. Not really in full bloom yet.

However, BYD has a basis to set this goal, as its products are quickly received in newly entered markets and have positive user reviews for quality. For example, in Thailand, appearing from the end of 2022, after just one year, the company will sell 30,650 cars by 2023, accounting for 40% of the electric car market share, becoming the best-selling electric car company in Thailand. The best-selling electric car model in this market is the BYD Atto 3, which will also be sold in Vietnam. Starting point is a technical research company, owning many patents in the field of electric vehicles, exclusive new technologies such as blade battery, CTB (cell-to-body – battery cells installed directly into the chassis) also helps BYD be more confident, even with Vietnamese customers who are considered by car manufacturers to be very demanding and unpredictable.

Duc Huy