The Rise of Chinese Automotive Brands: A New Strategy to Capture Market Share in Vietnam

After a period of introducing their products to the Vietnamese market, Chinese auto brands are making significant strides. They are no longer just “testing the waters” with electric vehicles, but are now repositioning and shifting their focus to hybrid vehicles, particularly plug-in hybrids (PHEVs), a niche market with untapped potential in Vietnam.

From Electric to PHEV: A More Practical Approach by BYD

Leading this wave is BYD, a Chinese automaker previously known for its focus on electric vehicles. However, instead of doubling down on EVs, BYD has recently introduced its first plug-in hybrid model: the Sealion 6, with two variants priced at 839 million and 936 million VND, respectively.

This move is not entirely surprising, as the Vietnamese electric vehicle market is facing several challenges, including a lack of synchronized charging infrastructure and the dominance of VinFast. In fact, BYD’s global sales heavily rely on PHEVs; in the first quarter of 2025, they sold over 569,000 PHEVs, outpacing their electric vehicle sales of 416,000 units.

The 2024 performance further highlights this trend, with nearly 2.5 million out of the over 4.25 million new energy vehicles (NEVs) sold globally by BYD being PHEVs. This indicates that BYD’s shift to hybrids in Vietnam is in line with its global strategy and better suits the preferences and infrastructure conditions in the country.

Affordable Pricing Remains a Key Advantage

Along with product adjustments, Chinese automakers are leveraging their biggest strength: competitive pricing. This has been a factor in their success in international markets, and it is now becoming their “ace card” to attract Vietnamese consumers.

For instance, the Jaecoo J7 PHEV, introduced in Vietnam, was initially priced at 999 million VND. However, following the launch of the BYD Sealion 6, Jaecoo promptly announced a new promotional price of 879 million VND and committed to refunding the difference to customers who had already purchased the vehicle.

Similarly, the Haval H6 Hybrid, originally listed at 986 million VND, is now being offered by some dealers for just 770 million VND, a discount of over 200 million VND.

In the B-segment SUV category, the competition is even fiercer. The Geely Coolray was launched at an attractive price of only 538 million VND, while the Omoda C5 Luxury is being offered with discounts, bringing its price below 500 million VND, comparable to the prices of A+/B-segment SUVs like the Toyota Raize or Kia Sonet.

Opportunities Abound, but Success is Not Guaranteed

It can be said that Chinese automakers have learned from the failures of the first generation of their vehicles in Vietnam, which struggled due to high prices and a lack of trust. Now, they are back with improved designs, technology, and, most importantly, a pricing strategy that resonates with Vietnamese consumers.

However, affordable pricing is just the “key to the door.” To truly retain customers and build trust, Chinese brands will need to offer more, including consistent product quality, excellent after-sales service, and a long-term development strategy.

For now, the “wave” of Chinese vehicles is likely to cause a slight shift in auto pricing in Vietnam, forcing competitors to reconsider their pricing strategies. At the same time, Vietnamese consumers now have more options and easier access to modern vehicles. Nonetheless, there are still challenges ahead for Chinese automakers to establish themselves as a trusted choice in the minds of Vietnamese consumers.

TH (Tuoitrethudo)