Small gasoline cars lose market share to electric cars
The picture of the automobile market in 2024 shows a clear contrast in the A segment. While small gasoline cars are showing a significant decline in sales according to VAMA's report, A-class high-chassis models, especially the VinFast VF 5 Plus, stand out with impressive growth. By the end of 2024, VinFast VF 5 Plus achieved record sales of 32,000 vehicles, affirming its leading position in the entire market.
In December 2024 alone, VinFast delivered 4,900 cars, nearly equal to the annual sales of Hyundai Grand i10.
Observers believe that the strong shift from gasoline cars to electric cars in the general market is also the reason why A-hatchback models - once very popular in Vietnam - are increasingly declining. In addition to the VF 5 Plus dominating the segment, VinFast's other small electric car model, the VF 3, also recorded sales of 25,000 vehicles, although it was only delivered in the last 5 months of the year.
“Small cars are still popular in Vietnam, but the VF 5 Plus and VF 3 have almost completely absorbed the market share of gasoline cars. And the trend of electric cars will increasingly prevail in 2025,” predicted Mr. Nguyen Thanh Long, a long-time car market observer.
The formula of good cars, good prices, and low operating costs makes electric cars dominate the market.
Explaining the reason for VinFast's success with VF 5 Plus and VF 3, Mr. Long said that both models have all the attractive factors that are "irresistible" to all customers.
First of all, these are all car models with their own unique designs. The VF 5 Plus is highly appreciated by many users for its youthfulness and fashion, while the VF 3 is unique and easily creates a highlight when moving on the road. In particular, despite having a "soft" price range, these two car models allow customers to freely choose the exterior color at a reasonable cost. This is a service usually only found on luxury cars with expensive prices.
For customers who want to optimize vehicle costs such as families, customers in the transportation service business... VF 5 Plus is the top choice. Due to the exemption of registration fees, VF 5 Plus has a rolling price equivalent to the listed price (only from 480 million VND), helping buyers save tens of millions of VND compared to traditional gasoline cars.
In particular, compared to its competitors, VinFast electric cars are equipped with superior features, from a series of ADAS driving assistance features with door opening sensors, blind spot warnings to 6 airbags on par with B-class cars...
Meanwhile, users still receive modern equipment and amenities such as a 10-inch touch screen entertainment screen, Vietnamese virtual assistant, remote vehicle location and vehicle status monitoring via the VinFast application, reverse sensors, etc. Therefore, VF 3 is suitable for young customers, first-time car buyers or families who already have a large car and want to own a second car for going out.
Furthermore, thanks to the free battery charging policy until 6.2027, users who buy VF 3, VF 5 Plus with battery can experience the benefit of "0 VND fuel" for 2.5 years.
Regarding maintenance costs, while gasoline cars need to be checked and have some parts replaced every 5,000 km, VinFast car owners only have their first maintenance every 12,000 km. According to many users, the cost for the first maintenance of the VF 5 Plus is only a few hundred thousand VND, only half that of gasoline car models.
With a series of outstanding advantages above, according to Mr. Long, it is not difficult to understand why both VF 3 and VF 5 are the top priority choices of consumers looking for small urban cars. The decline of gasoline car competitors is predicted to continue as VinFast's two SUV models increasingly prove their position at the top of the market.
