At a conference on emissions reduction in the automotive industry under the motto VIR On August 29, those present learned that “green” cars are currently trending all over the world and are experiencing significant growth every year.
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| Vo Minh Luc – CEO of BYD Vietnam |
According to the International Energy Agency, most electric vehicles (EVs) sold in 2023 will be in China (60 percent), Europe (25 percent) and the United States (10 percent). These regions account for about 65 percent of total global car sales.
In 2023, the market share of electric vehicles will increase to about 18 percent, reflecting the strong growth of the electric vehicle market recently. By the end of 2024, the market share of electric vehicles could reach 45 percent in China, 25 percent in Europe and 11 percent in the United States.
Vo Minh Luc, CEO of BYD Vietnam, noted that the company will stop producing traditional internal combustion engine vehicles in 2022 to focus on alternative powertrain vehicles. By July 2024, BYD’s total annual sales reached more than 1.9 million units – and in July alone, BYD sold nearly 342,400 units, an increase of 30.5 percent year-on-year.
“Since August 11, BYD has helped reduce global carbon dioxide emissions by more than 65.2 million tons, equivalent to nearly 1.1 billion additional trees planted,” said Luc.
Vietnam has adopted many policies to encourage the development of environmentally friendly vehicles and transportation, including a green energy transition program, reducing carbon dioxide and methane emissions in the transportation sector, and reduced registration fees for electric vehicles.
Luc said that, in addition to the benefits that come from these measures, the development of environmentally friendly transport faces numerous challenges, including inadequate planning for the expansion of charging stations in urban areas and transport infrastructure that does not meet people’s transition needs.
“Policies to support people in switching to alternative fuel vehicles have not been consistently implemented and the roadmap is not clear, especially in big cities. Investment policy for the electric vehicle ecosystem is still unclear and it is difficult to attract investors,” said Luc.
The practical experience of countries in the region in addressing these challenges also varies widely. The Thai government has expanded its subsidy policy for battery-powered electric vehicles, for example through tax breaks and cash grants. Companies in Thailand are also exempt from corporate tax for pure electric vehicle projects and from import tax on electric vehicle parts for up to eight years.
For electric vehicles imported from China, the Thai government has been providing a subsidy of about US$4,000 per unit sold since 2022 under the ASEAN-China Free Trade Agreement. These measures have greatly increased the share of electric vehicles in Thailand.
In China, people who use electric vehicles have been receiving a subsidy of 20,000 yuan ($2,800) since July this year, double the subsidy announced in April. According to the China Association of Automobile Manufacturers, car sales reached 14 million units in the first half of 2024, up 6.1 percent year-on-year. Fitch Ratings noted that China’s electric vehicle industry is expected to achieve 20 percent sales growth by the end of this year.
The Malaysian government is exempting electric vehicles from import duties and excise taxes for four years. Components for domestically assembled electric vehicles are currently exempt from import duties for six years until the end of 2027. Domestically assembled electric vehicles will be fully exempted from duties for six years. Road tax for electric vehicles is also exempted. They are expected to account for 80 percent of total vehicle sales in Malaysia by 2050.
In Indonesia, an initiative to accelerate the development of road transport with special incentives for localized electric vehicles was developed in 2019. Specifically, the minimum localization rate is over 40 percent in 2022-2023, at least 60 percent in 2024-2029, and at least 80 percent after 2030. The country aims to sell more than 50,000 electric vehicles in 2024, tripling the 2023 figures.
“BYD is entering the Vietnamese market to cooperate with all partners and offer the latest technologies, products and best services. This will give users more choices for alternative fuel vehicles. With the efforts of all parties, the Vietnamese automotive industry will develop faster and people will easily have access to environmentally friendly transportation products with modern technologies and reasonable costs,” emphasized Luc from BYD Vietnam.
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