Electric vehicle demand surges in Ho Chi Minh City as prices ease, fuel costs rise

Showrooms across the city have reported higher foot traffic and rising sales, with customers increasingly opting for battery electric and plug-in hybrid vehicles as manufacturers expand model ranges and adjust pricing.

Sales staff said interest has grown since after the Lunar New Year holiday in mid-February, driven by concerns over fuel costs and improved vehicle design, technology, and operating efficiency.

At several dealerships, buyers were comparing multiple brands and asking detailed questions about battery life, charging infrastructure, and total running costs before making purchases.

Electric car models in the mid-range price segment were being marketed with combined driving ranges exceeding 1,800 km for hybrid variants, appealing to users seeking flexibility for long-distance travel.

Dealers said intensifying competition has led to frequent pricing and policy adjustments, with manufacturers offering discounts, subsidies, and incentives such as free charging or reduced registration fees to attract customers.

Meanwhile, the electric motorbike segment has seen a more immediate shift in consumer behavior, with strong demand from ride-hailing drivers, students, and households seeking to cut daily transport costs.

At multiple retail outlets, popular models priced between about VND20 million (US$760) and VND30 million ($1,139) were often out of stock, with customers required to wait several days or up to two weeks for delivery.

Some stores reported daily sales rising to 15–20 units from about five or six units previously, while customer traffic reached 100–150 visits per day, particularly during evenings and weekends.

Flexible payment options, including low deposits, installment plans and battery leasing schemes, have also helped boost affordability and attract new buyers.

Industry representatives said the recent shift suggests Vietnam's electric vehicle market is moving beyond an exploratory phase into a period of accelerated growth, supported by expanding charging infrastructure and continued promotional campaigns.

However, dealers noted that stronger competition has increased pressure on margins, forcing companies to offer more incentives while competing for market share.

Vietnam's fuel prices have risen in recent weeks due to fluctuations in global oil markets driven by conflicts involving the United States, Israel, and Iran that broke out in late February.