‘Mini EV lessons still exist’

Below is the discussion between host Dang Viet and Mr. Vu Tan Cong – former general secretary of VAMA – on the topic: TMT Motors makes its own cars – What lessons from Wuling?

Recently, the president of TMT Motors personally revealed to the press his intention to produce a low-cost electric vehicle to replace motorbikes. How do you evaluate this strategy of TMT Motors?

First, producing cars is something TMT Motors can do. However, producing cheap cars to replace motorbikes still faces many challenges. There are opportunities, but for TMT Motors there are still many challenges.

First, about the price issue. A cheap motorbike currently costs 20-30 million VND, while the cheapest car costs 200-300 VND, this difference is a big financial problem.

Second, the problem of parking. A family with 2 motorbikes parked in the house is very simple. But if a family replaces 2 motorbikes with 1 car, parking the car is a completely different story.

Third is the issue of charging stations if choosing an electric car. Currently, besides VinFast, the network of charging stations for electric cars in Vietnam is not yet developed. Other car manufacturers, specifically TMT Motors, if they do not invest in charging stations, it will be very difficult for users to use their cars.

Therefore, we should consider cars as a better choice when encountering rainy, sunny, dusty, and polluted conditions. People sitting in the car will feel cleaner, as well as safer if they accidentally encounter an accident.

TMT Motors has joined hands with Wuling to distribute two car models Mini EV and Bingo. The Mini EV is a small, cheap electric car model but has not yet been successful. So sir, is TMT Motors making a mistake with the idea of ​​producing its own cheap electric cars?

In my opinion, TMT Motors made a mistake in choosing the mini electric car segment.

According to my market research, for many years the market share of small A-segment cars and mini cars has been very small. If a business chooses such a niche segment, it will be very difficult.

Second, I am skeptical that even though I do not know clearly about the financial situation of TMT Motors, I ask myself the question: Do they have enough capacity to invest in a network of public charging stations? Selling electric cars without charging stations will be extremely difficult. Therefore, VinFast is investing heavily in charging stations and is doing very well.

Third, I think TMT Motors did not research the product carefully. While VinFast VF 3 is a high-clearance A-size CUV segment, Wuling Mini EV is a small, low-clearance car. Therefore, the Mini EV will be more easily damaged if it encounters a flooded road.

So, in my estimation, the Wuling Mini EV has failed. TMT Motors needs to learn from those experiences to avoid continuing mistakes.

TMT Motors once shared with the press that it needs to learn a lot of experience if it wants to produce its own cars in the future. So what do you think they need to do?

There is a saying in Vietnamese that implies “everything depends on people”. As a Vietnamese, I also agree with this opinion, it’s all about human factors.

My advice to TMT Motors is to hire good experts in the automobile industry. They will create product strategies, marketing strategies, brand development strategies, and business strategies. Only by doing so will TMT Motors have a chance to succeed. I don’t work at TMT Motors and don’t know the financial situation, but with the current way of doing things, I think they don’t know how to do it.

There are opinions that TMT Motors only makes trucks and has no experience making cars, so it encountered mistakes. What is your opinion?

This opinion is completely correct.

Because customers buying trucks are not as meticulous as customers buying cars. Trucks are a means of transportation, customers are not as picky and demanding as with cars. Therefore, TMT Motors has had certain successes with trucks. But that doesn’t mean cars are the same. Using experience in making trucks to apply to cars is not correct.

As a Vietnamese person, I strongly support TMT Motors if they can make Vietnamese brand cars and serve the country of Vietnam.

Yes, thank you very much for your recent sharing.