Where are the Chinese car brands that made a lot of noise when entering Vietnam?

The Vietnamese automobile market has recently witnessed the appearance of a series of car brands from China. Names like Wuling, Haval, BAIC, and BYD once caused a stir when they first launched with grand claims about technology, sales, and competitive prices. However, after a noisy start, many car companies have had difficulty conquering Vietnamese customers.

1. Wuling Hongguang Mini EV: From “electric car king” to price reduction war,

Wuling Hongguang Mini EV – the world’s best-selling small electric car model (according to EV Volumes report), with the title “king of small electric cars” for 4 consecutive years, was expected to create a big boost when it appeared in Vietnam. Introduced as a low-cost electric car solution, suitable for short urban travel needs, Wuling Hongguang Mini EV attracted strong attention when launched. However, when this car model was officially launched in the Vietnamese market, after a few months of opening for sale, the number of cars rolling on the streets of Vietnam was very small, even though there were times when this car model was discounted to 185 million VND.

One of the big problems with the Wuling Hongguang Mini EV is its modest range of only 120-170 km on a full charge, along with the lack of fast charging features. This car model depends entirely on a 1.5 kW charger plugged into 220V household electricity, causing charging time to last from 6-9 hours, creating inconvenience for users. Even though prices have been reduced and many promotions have been implemented, this car model has not really scored points in the Vietnamese market, making the dream of conquering users become distant.

In addition, for TMT Motors, the distributor of Wuling Hongguang Mini EV in the Vietnamese market, which has invested heavily in production lines and showroom systems, after only one year, the business situation has become extremely bleak. Car sales are very low, only reaching 10.7% of the target set for 2023, forcing the company to sharply reduce sales targets for 2024.

Not only facing difficulties in sales, TMT Motors is also under financial pressure due to rising interest costs and having to reduce prices deeply to release inventory. This has caused the company to record an after-tax loss of nearly 100 billion VND in the first half of 2024. With prolonged losses and an ineffective electric vehicle business model, TMT Motors is facing the risk of seriously reducing its financial potential.

2. Haval H6: The “king of sales” car model in China but lost in Vietnam despite a price reduction of 300 million

Haval H6, one of the best-selling SUV models in China, was also a great hope when entering the Vietnamese market. Promoted as a modern and advanced hybrid car model, Haval H6 is confident with the title of “sales king” in its home market and hopes to compete fairly with rivals such as Honda CR-V and Mazda CX-5. However, contrary to initial expectations, this model has encountered many difficulties in establishing a foothold in the Vietnamese market.

Immediately upon launch, Haval H6’s selling price of nearly 1.1 billion VND created a big obstacle for consumers. With this price, Haval’s car model faces fierce competition from famous competitors from Japan and Korea, brands that have a solid foothold in the minds of Vietnamese people. Not to mention, buying a Chinese car model at such a high price makes many consumers feel hesitant about the true value that the car brings.

Therefore, after only a short time of launch, Haval H6 had to drastically reduce prices to stimulate demand. The reduction is up to 300 million VND, bringing the selling price to 850 million VND – a much more attractive number than the original selling price. However, even with the price reduced, sales of the Haval H6 are still a big question mark as it is almost impossible to see this model on the road.

3. BAIC Beijing X7: From fever to fear of “being abandoned”

BAIC Beijing X7 is one of the Chinese car models that made the most noise when it was first launched in Vietnam. Exaggerated by the media with the title “king of style” or “queen of fashion”, in fact, Beijing X7 has also attracted the attention of Vietnamese consumers with its beautiful design, modern technology and attractive selling price of just over 700 million VND. Immediately after its launch, the Beijing X7 distributor in Vietnam – Kylin GX 668 Company, announced that it had sold more than 1,000 cars in just a short time, creating a fever at that time.

However, after the promising launch event, the market quickly noticed unusual signs. In fact, data from the Vietnam Register shows that the number of registered BAIC vehicles is much lower than the announced number. In addition, the most worrying incident is that the Kylin GX 668 Company stopped operating and closed its tax code, leaving customers who bought the Beijing X7 in a state of confusion about warranty and after-sales. Accordingly, consumers in the Vietnamese market feel abandoned.

Many people have compared the fate of the Beijing X7 with previously forgotten Chinese models like the Zotye Z8. The lack of a warranty unit, along with the stalled distribution system, has made this model a risky “gamble” for consumers. This situation further reinforces the stereotype that Chinese car brands are difficult to maintain long-term in the Vietnamese market.

4. BYD: Proclaiming “number 1 in the world” but not convincing in Vietnam

BYD – the world’s largest electric vehicle brand and proud to be “number 1 in the world” in electric vehicle sales, had an extremely impressive debut in Vietnam with massive car experience and test drive events. From the “BYD – Technology Green Future Week” in June to the official launch ceremony in July, BYD has attracted a lot of attention. With a diverse product range from electric cars to hybrid cars, this car company sets an ambitious goal for long-term development in Vietnam.

However, after more than a month of appearing, BYD is facing many difficulties in building trust with Vietnamese users. The showroom system has not developed on schedule, many dealers are only at the commitment stage but have not yet come into operation – BYD announced that it will expand the distribution system with 36 dealers, in fact so far only 16 dealers are officially operating. The number of cars available at the showroom is very limited, leading to users having to wait a long time to receive the car, especially with the BYD Seal model.

In addition, the issue of charging stations is also a big problem for BYD. This car company has no plans to develop its own charging station system, but depends on third-party charging stations – this makes charging the car inconvenient, especially when charging stations in Vietnam are limited in number and scale. High charging prices, difficulties in payment, and underdeveloped infrastructure have made users lose faith in BYD’s commitment to being “number 1 in the world”.

Although BYD continues to mention the goal of selling 5,000 cars in Vietnam in 2024, with what is happening, this goal seems increasingly distant.

Although they once caused a lot of noise and expectations when entering Vietnam, Chinese car brands are facing many difficulties in convincing consumers. From problems with quality, after-sales service, to delays in developing distribution systems and charging infrastructure, brands such as Wuling, Haval, BAIC or BYD are still facing indifference and lack of trust from Vietnamese customers. Rebuilding their image and building appropriate strategies will be a big challenge if they want to survive and develop in a fiercely competitive market like Vietnam.