Cheap electric cars open up new competition in the Vietnamese auto market

Thanh Vũ |

Cheap electric vehicles not only expand access opportunities for users but also force traditional car manufacturers to adjust their competitive strategies.

The electrification process of the automobile industry is taking place rapidly globally, leading to a downward trend in electric vehicle selling prices. According to the Global EV Outlook 2026 report, electric vehicle sales worldwide exceeded 20 million units in 2025, an increase of about 20% compared to the previous year. Electric vehicles currently account for more than 25% of the total new cars sold, reflecting the increasingly rapid popularization of this type of vehicle.

The report also shows that electric car prices are gradually approaching cars using internal combustion engines thanks to reduced battery production costs, expanded production scale and competition between manufacturers. This is considered an important driving force for consumers to switch to using electric cars.

Common electric vehicles are increasingly accessible to consumers

In Vietnam, this trend is also becoming clearer as the popular electric vehicle segment is increasingly diverse. Instead of focusing only on high-priced vehicles like in the early years of development, the market has now seen many products priced under 500 million VND, targeting customers who buy a car for the first time or serve daily travel needs.

According to the International Energy Agency (IEA), Vietnam is one of the markets with remarkable electric vehicle development in Southeast Asia thanks to the expansion of supply and increasingly competitive prices. This contributes to helping electric vehicles reach more customer groups than before.

Competition shifts from selling price to ownership cost

Not only competitive in selling price, electric vehicles are also assessed as having an advantage in usage costs. Due to their simpler structure than internal combustion engine vehicles, electric vehicles do not need to change engine oil and have fewer mechanical details that need periodic maintenance. In addition, the energy cost per km of operation is also lower in normal usage conditions.

These factors are creating competitive pressure on the popular car segment. If previously buyers mainly balanced between gasoline car models in the same price range, now electric cars have become a worthwhile choice, especially for car users mainly in urban areas.

However, electric vehicles still face many challenges. Charging station infrastructure is not evenly distributed between localities, while charging time, travel distance and resale value are still factors that consumers consider before deciding to spend money.

Many studies on the Vietnamese automobile market also show that the speed of recharging network expansion will have a major impact on the ability to popularize electric vehicles in the coming years. As infrastructure improves, the distance in convenience between electric vehicles and vehicles using internal combustion engines will continue to narrow.

In that context, competition in the auto market is no longer just about engine power or fuel consumption. Selling price, usage cost, safety technology, connectivity and service ecosystem are becoming decisive factors in the attractiveness of each car line.

Market research organizations believe that the popular electric vehicle segment will continue to grow in the next few years thanks to increasingly reasonable selling prices, a more diverse product portfolio and the need to switch to low-emission vehicles. This is forecast to create stronger competition in the Vietnamese auto market, where consumers have more choices within the same budget range.

Thanh Vũ
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