The Chinese Car Conundrum in Vietnam: Still Lacking in Both ‘Quality’ and ‘Quantity’

While the Vietnamese auto market usually experiences a slowdown during the first months of the year due to the Tet holiday season, the entry of Chinese automakers has brought a buzz of excitement to the industry this year, with a steady stream of new model launches.

A Stream of New Entrants

Kicking off the year, TMT Motors surprised the market by unveiling a range of new products slated for launch in 2025. According to the distributor, around 7-8 new models from Baojun and Wuling are expected.

TMT has revealed the first three models to be introduced to Vietnam: the Baojun E100, Baojun Yep, and Yep Plus. The company has also hinted at plans to bring in the Wuling MiniEV MPV and kei-car Zhiguang EV, Macaron 4. While the exact launch timing has not been disclosed, TMT Motors has suggested that the ultra-mini electric car E100 will be priced below 200 million VND.

Baojun E100. Photo: TMT Motors.

Following Wuling, images of the BYD Sealion 6, a plug-in hybrid SUV, surfaced on social media. According to dealership consultants, the model is likely to be launched in April. Positioned in the C-segment, the Sealion 6 will compete against the Haval H6 (986 million VND), Honda CR-V e:HEV RS (1.259 billion VND), and Jaecoo J7 (799-999 million VND).

Tasco Auto, the distributor of Lynk & Co in Vietnam, has introduced three versions of the Geely Coolray to the market. This gasoline-powered SUV is positioned in the C-segment and goes up against established players such as the Mitsubishi Xforce (599-680 million VND), Honda HR-V (699-871 million VND), Toyota Yaris Cross (650-765 million VND), Hyundai Creta (599-699 million VND), and Kia Seltos (599-799 million VND).

Geely Coolray. Photo: Dan Thanh.

Haval has also joined the fray by introducing several new models at its dealerships, including the Tank 300, which bears a resemblance to the Jeep Wrangler in terms of design and style. The Wey 80 and M6 have also made appearances, although it is unclear whether these are intended for commercial sale or merely product showcases.

Overall, Chinese automakers are aggressively pushing their new models into the Vietnamese market, even during typically slower periods. However, they are adopting a cautious approach by organizing test drive events before officially announcing prices, rather than rushing into full-scale launches.

The range of vehicles being introduced to Vietnam is also more diverse, spanning different segments instead of solely focusing on popular SUVs. Nevertheless, the expected price points are not particularly competitive, and it will take time for these brands to build familiarity and trust with Vietnamese consumers.

Promotions Abound but Lack Luster

Chinese automakers have been offering various promotions and incentives during the first quarter to stimulate sales. At dealerships, the Wuling MiniEV electric car is mostly sold below the listed price. According to our observations, the MiniEV LV2 is available for 187-220 million VND, representing a savings of around 10-15 million VND compared to the original price.

The two hatchback versions of the Wuling Bingo are also being offered with cash incentives. The 333 km range model is priced at approximately 380-389 million VND, a discount of 10 million to 19 million VND from the listed price.

Even the recently launched Omoda C5 and Jaecoo J7 are not exempt from promotions aimed at boosting sales. Customers purchasing the Omoda C5 can choose between two incentive packages worth 10-25 million VND. The first option includes one year of physical damage insurance, two years of maintenance, window tinting, and a dashcam. Alternatively, customers can opt for a cash discount of 10-20 million VND if they trade in their old vehicle.

Omoda C5 (left) and Jaecoo J7 (right).

For the month of March, Jaecoo J7 prices have been reduced to 729-929 million VND, down from the previous range of 799-999 million VND. Additionally, J7 buyers are offered an extended warranty of 7 years (or one million km) for the vehicle and 10 years (or one million km) for the engine.

BYD Vietnam has launched a promotion for three of its models: the BYD Dolphin, Atto 3, and Seal. Customers purchasing these vehicles in March are eligible for a cash discount of 38 million VND, plus a complimentary 6-year maintenance package worth 6 million VND.

As a result of these promotions, the BYD Dolphin can be acquired for 621 million VND, the Atto 3 for 728-848 million VND, and the electric sedan Seal for 1.081-1.321 billion VND.

BYD Atto 3 and Dolphin. Photo: Phuc Hau.

The influx of new models from Chinese automakers has undoubtedly injected excitement into the Vietnamese auto market right from the start of the year. However, despite the various promotions on offer, the appeal of these vehicles remains limited. To win over Vietnamese consumers, these brands from the world’s most populous country will need to focus not only on pricing and incentives but also on building trust and enhancing product quality. It may take some time before Chinese models can truly compete with their Vietnamese, Korean, and Japanese counterparts in terms of sales performance.

The time when a Chinese car model can rival the sales figures of established brands from other countries may still be a distant prospect.

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