The Coolray Conundrum: Can Geely’s Offering Compete at VND 538 Million?

Geely, the latest automotive brand under the Geely umbrella, including Volvo and Lynk & Co, has officially entered the Vietnamese market with its inaugural model, the Geely Coolray.

With three variants and a starting price of 538 million VND, the Geely Coolray is now one of the most affordable SUVs in the B-segment. How competitive is the Geely Cooolray in what is considered one of the most fiercely contested segments in Vietnam’s automotive market?

Affordable Pricing is Not Its Only Advantage

Upon its launch, with prices ranging from 538 million to 628 million VND, many believed that the competitive pricing would be the key factor contributing to the success of this Chinese newcomer in Vietnam.

This assessment is not entirely inaccurate, as the Geely Coolray offers a compelling value proposition when compared to other B-segment SUVs such as the Mitsubishi Xforce (599-705 million VND), Toyota Yaris Cross (650-765 million VND), Mazda CX-3 (522-641 million VND), Hyundai Creta (599-699 million VND), Kia Seltos (599-799 million VND), MG ZS (518-588 million VND), Haval Jolion (669-719 million VND), and the Omoda C5 (539-669 million VND)

The Geely Coolray is the brand’s first model introduced to the Vietnamese market. Image source: Geely Vietnam.

As previously mentioned in earlier articles, aside from product quality, Chinese automobiles also need competitive pricing to stand a chance in the market. While pricing is indeed a crucial factor, it is not the sole determinant of success for Chinese automakers in Vietnam.

In addition to pricing, other factors such as vehicle quality, stable supply chains, and the caliber of after-sales services also play pivotal roles in the success of any automotive brand.

Upon entering the Vietnamese market, Geely continued its partnership with Tasco Auto, similar to its approach with other brands under the Geely group, such as Volvo and Lynk & Co.

According to the information provided, Tasco Auto currently holds a 13.7% market share in Vietnam’s automotive industry, boasting a network of 106 showrooms nationwide and serving as an authorized distributor for 16 automotive brands.

Tasco is a powerhouse in Vietnam’s automotive distribution sector. Image source: Tasco Auto.

Tasco’s extensive experience, profound understanding of the domestic automotive market, and strong financial backing make it a highly desirable partner for any automotive brand looking to establish itself in a new market.

With Tasco’s capabilities, Geely has a trusted and experienced ally to formulate effective strategies and the financial muscle to support the brand in the highly competitive Vietnamese market, ultimately aiming to increase brand awareness and recognition among Vietnamese consumers.

Geely’s Prospects for Success

To offer the Geely Coolray at such a competitive price point, the Chinese automaker made a strategic decision to introduce a model that has already proven successful in Malaysia.

Last year, the Proton X50 sold approximately 23,000 units in Malaysia, making it the second highest-selling model for the brand owned by the Geely group.

Proton X50/Geely Coolray New Generation. Image source: Theottle.

Additionally, 2024 marked the fourth consecutive year that the Proton X50 topped the sales charts in the B-segment SUV category in Malaysia. Malaysians are known for their love of high-speed driving, so for the Proton X50/Geely Coolray to earn their trust, it must be a vehicle of exceptional quality.

Prior to Geely’s official launch in Vietnam, Tasco and the Geely group finalized agreements to jointly assemble CKD vehicles, catering to both the domestic market and export to countries with free trade agreements with Vietnam.

Geely will be one of the first automotive brands to roll off the assembly lines of this new facility, which is slated to commence operations in early 2026.

As mentioned earlier, Tasco’s strengths will provide Geely with a solid foundation for growth in Vietnam, and local production from the Tasco-Geely plant will be a contributing factor.

Tasco will soon assemble Geely vehicles in Vietnam. Image source: Geely.

Vietnam’s automotive market has witnessed instances where the sales performance of a particular model suffered due to reliance on supply from overseas plants.

Moreover, local assembly will confer “domestic vehicle” status, making it eligible for preferential tax policies that are typically offered for locally assembled vehicles.

In summary, the Proton X50/Geely Coolray is already a proven success in foreign markets, and Tasco’s strategy is likely to replicate that triumph in Vietnam. Nonetheless, Geely, as a Chinese brand, will inevitably face familiar challenges and preconceptions in the Vietnamese market.

Familiar Challenges

Despite its success as a Proton model in Malaysia, the X50—or the Geely Coolray, as it is known in Vietnam—will require time to establish its credentials among Vietnamese consumers.

While Geely Vietnam has conducted test drive events, their scope and scale seem insufficient to immediately convince Vietnamese consumers about the vehicle’s quality.

With its attractive pricing, as mentioned earlier, the Geely Coolray becomes accessible to a wider range of Vietnamese buyers, especially considering that the starting price of 538 million VND is not a common price point in the urban SUV segment.

The base price of 538 million VND for an SUV in the B-segment, equipped with a 1.5L turbocharged engine delivering 177 horsepower and 255 Nm of torque, is indeed a compelling proposition. Even the standard model includes LED headlights, an electronic gearshift lever, cruise control, and speed limit and overspeed warning systems.

Even the standard Geely Coolray offers notable features. Image source: Phúc Hậu.

Affordable pricing will be the initial advantage that lures customers to the Coolray. However, it is only after purchasing and experiencing the vehicle that Vietnamese consumers will truly be able to assess the quality of the Coolray and, by extension, Geely’s overall product and service standards, rather than solely relying on technical specifications listed in brochures or advertised through various media channels.

By announcing the Coolray’s pricing while also teasing the upcoming SUV D-segment Monjaro and the C-segment pure electric EX5, Geely is strategically positioning itself to attract buyers with its most “sellable” model first.

Once Vietnamese consumers have had the opportunity to experience Geely’s product quality and after-sales services, the brand will be poised to introduce the Monjaro, EX5, and a host of other Geely models.

In conclusion, while Geely’s success remains to be seen, the brand’s prospects appear brighter than most of its Chinese counterparts currently present in Vietnam.

At present, MG leads the pack among Chinese automakers in terms of sales, successfully implementing a strategy centered on affordable pricing. Geely, along with Chery, is competitively priced within the highly contested SUV segments, putting them on par with their rivals.

Other Chinese brands have either adopted a less aggressive approach in the Vietnamese market or focused on electric vehicles, which are inherently more challenging to sell. Speaking specifically of Geely, with the backing of Tasco and being the most “sellable” brand among Tasco’s portfolio, it has the potential to rival MG if it makes the right strategic moves.