China’s top carmaker BYD revealed plans on Thursday for a major expansion in Vietnam – news that could pose an enormous challenge for Vinfast, its local electric vehicle rival.
The EV giant is due to open its first stores – more than a dozen dealerships – in its southern neighbour this week.
Some 13 BYD dealerships will open their doors to the Vietnamese public on Saturday and the automaker hopes to boost that number to about 100 by 2026.
ALSO SEE: Key EV Software Must be Made in an Allied Nation: US Official
An initial three model product line-up that includes the compact crossover Atto 3 will increase to six from October, according to Vo Minh Luc, chief operations officer for BYD Vietnam.
All BYD models for Vietnam will be imported for the time being. Vietnam’s government said last year BYD had decided to build a factory to manufacture electric cars in the north of the country but those plans have slowed, the company that operates the industrial park in the area said in March.
“BYD is in talks with a number of localities in Vietnam to optimize the plant plan,” Luc said in a statement emailed to Reuters.
New US EV rules could impact SE Asia car plant decisions
Remarks made recently by a senior US official that new US rules will put limits on software for EVs made in China, have raised speculation that production facilities in ‘allied’ countries such as Thailand, where BYD has begun work on a new plant, plus other states seen as friendly to the US, such as Mexico and Vietnam, could benefit from regulations due to be announced next month.
Alan Estevez, undersecretary of the Bureau of Industry and Security, said the rules would propose new restrictions on certain Chinese “connected vehicle imports”, such as certain software, sensors and cameras used in those cars, according to a report by International Trade Today (ITT).
It is not known yet whether BYD will aim to use production facilities planned in Southeast Asia to export its EVs to the US.
Meanwhile, there has also been discussion about possible impacts if Donald Trump wins the US election in November, with some claims that Trump (or Biden) could discontinue the US-Mexico-Canada Agreement, which could also impact investments by Chinese EV makers in Mexico.
There is talk already that a Trump administration could rattle businesses by subjecting exports from Canada and Mexico to a 10% tariff, or by simply withdrawing from the USMCA, Dan Ujczo, a senior counsel in Thompson Hine’s trade practice was quoted as saying, according to another ITT report on Wednesday (July 17).
Atto 3 to priced higher than Vinfast VF 6
Meanwhile, the Atto 3 will be priced from 766 million dong ($30,300), somewhat higher than the 675 million dong starting price for VinFast’s VF 6.
Like BYD, VinFast no longer makes gasoline-engine vehicles. But it has had far less business success than its Chinese rival which has become the world’s biggest manufacturer of electric cars.
VinFast sold 32,000 EVs in Vietnam last year but most of the vehicles were sold to an affiliate.
HSBC estimated in May report that Vietnam’s annual sales of electric two-wheelers and electric car sales could rise from less than one million in 2024 to more than 2.5 million by 2036.
- Reuters with additional input and editing by Jim Pollard
ALSO SEE:
China’s BYD Opens Its First EV Plant in Southeast Asia
China’s BYD Sees Solid Rise in EV Sales in Second Quarter
Indonesia’s First EV Battery Plant Launched by Hyundai, LGES
Chinese Firms See Morocco as Path to US EV Credits – AP
Germany Opposes EU Tariffs on China EVs, as Trade Heat Rises
Vietnam’s VinFast Signs $500 Million Deal to Make EVs in India
