Hanoi, February 19, 2025 – The Europe Today: The electric and hybrid vehicle market in Vietnam is expected to experience significant expansion, with forecasts indicating a growth rate of 25-30 per cent in 2025, according to industry experts.
Projections suggest that by the end of this year, electric and hybrid vehicles will account for approximately 15-20 per cent of total passenger car sales in Vietnam. This growth is attributed to the increasing popularity of models from manufacturers such as VinFast, Toyota, Honda, Hyundai, Kia, BYD, and MG. The most dynamic market segments are expected to include small electric cars, affordable electric vehicles, and mid-range hybrids.
According to the Oto.com.vn Market Research Department under Nextgen Vietnam Joint Stock Company (Oto.com.vn), several key factors are driving this growth, including government incentives, the expansion of EV charging infrastructure, new model launches, and rising consumer awareness. In 2024, over 97,000 electric and hybrid vehicles were sold, accounting for more than 22 per cent of total new passenger car sales, highlighting a strong transition towards sustainable transportation.
VinFast led the market with 87,000 electric cars sold, demonstrating strong consumer preference for local brands. Toyota followed with 5,350 hybrid cars, showcasing its hybrid technology expertise. Suzuki and Honda recorded sales of 2,515 and 1,905 hybrid cars, respectively, reflecting a growing interest in fuel-efficient vehicles.
Vietnam’s commitment to achieving carbon neutrality by 2050 is driving robust policies to support electric vehicle (EV) adoption. The Government has implemented significant incentives, including a zero per cent registration fee for battery electric vehicles (BEVs) from March 1, 2022, to February 28, 2025, followed by a 50 per cent reduction compared to gasoline and diesel vehicles from March 1, 2025, to February 28, 2027.
Additionally, major enterprises such as VinFast, V-Green, Petrolimex, PV Power, and EVN, along with private investors, are rapidly expanding the country’s EV charging infrastructure. These investments aim to enhance convenience for EV users and address a key barrier to widespread adoption.
The launch of VinFast’s low-cost mini SUV VF3 in May 2024 generated significant market interest, with nearly 27,700 deposits placed within 66 hours and over 30,000 searches for “VF3 car price” on Google. The Vietnamese market is also witnessing an influx of electric cars from China, further diversifying consumer options.
As demand for EV pricing information spikes during new car launch events, international brands are expanding their presence in Vietnam, introducing competitively priced EVs to make green vehicles more accessible.
To achieve the ambitious 25-30 per cent market share target for electric vehicles, continued robust government support will be required. This includes further investment in infrastructure and increased research and development from car manufacturers. The Government is already planning to subsidize electricity prices for EV charging stations, reinforcing its commitment to promoting electric vehicle adoption and advancing energy transition goals.
