Hybrid vehicle market grows as Vietnam dawdles on EV

The Japanese giant, the carmaker most focused on the hybrid vehicle market, now offers hybrid versions for most of its vehicles.

Since the launch of the Corolla Cross hybrid in 2020, it has added five more models to the lineup: Altis, Camry, Yaris Cross, Innova Cross, and Alphard.

Suzuki, another Japanese brand, launched its mild-hybrid XL7 in mid-August and is expected to showcase a new hybrid, the Swift, at the upcoming Vietnam Motor Show in October.

The Suzuki XL7 mild-hybrid model at its launch event on Aug. 20, 2024, in Ho Chi Minh City. Photo by VnExpress/Thanh Nhan

A third Japanese company, Honda, entered the market in late 2023 with its CR-V model, and next plans to introduce the hybrid Civic at the October event.

Dealerships said Kia's 2024 Carnival, which will be coming to Vietnam in the fourth quarter, will feature a hybrid option. The South Korean automaker has another hybrid model, the Sorento.

Haval, the Chinese company that entered Vietnam last year, is set to introduce the Jolion with a hybrid engine option, its second one after the H6.

Swedish luxury auto manufacturer Volvo offers hybrid versions of its entire lineup, while Lexus, Toyota’s luxury vehicle sibling, provides the option in five models: ES, LS, NX, RX, and LM.

German brand BMW has the high-performance XM model priced at nearly VND11 billion (US$442,000).

An expert in charge of the Vietnam Automobile Manufacturers Association's technical subcommittee said the shift towards electrification in Vietnam is not progressing as quickly as in other Southeast Asian countries.

"Hybrid vehicles bring the benefit of reducing emissions, but their high prices mean the market [for such vehicles] cannot expand significantly."

Nonetheless, the fact that more automakers are launching hybrids indicates there is consistent demand for this type of vehicle.

To drive demand, the association urged the government earlier this month to lower the excise taxes on hybrid vehicles from 70-100% of the rates applied to gasoline and diesel cars to 50-70%.

Gas and diesel cars are currently subject to a 35-150% excise duty based on engine size.

In the first seven months of this year members of the association, which include most major auto companies except Hyundai and VinFast, sold 4,142 hybrid vehicles.