Vietnamese automaker joins Chinese partner to tap local mini-EV market

HANOI, Feb. 20 (Xinhua) -- A Vietnamese automaker has signed a strategic cooperation agreement with a General Motors' local Chinese joint venture to introduce micro electric vehicles in the Southeast Asian country, online newspaper VnExpress reported on Monday.

Vietnam's TMT Motors would make a joint push with SAIC-GM-Wuling (SGMW), a joint venture between General Motors and two Chinese partners SAIC Motor and Wuling Motors, to roll out budget electric vehicles (EV) under Wuling brands in the second quarter of this year.

TMT Motors said it has the exclusive authority to manufacture, assemble and distribute EV models in Vietnam and that SGMW will support its manufacturing capabilities by providing auto parts to ensure quality and delivery.

The Hongguang MINI EV is the first model to get launched in Vietnam, TMT Motors said in a press release, adding that the two-door small electric runabout has outperformed many rivals to become the bestselling mini EV in the world in three consecutive years.

TMT Motors said it would turn out the Hongguang MINI EV at its existing facilities in the northern province of Hung Yen, just outside the capital of Hanoi, which currently has an annual capacity of 30,000 vehicles.

The automaker also saw a projected annual capacity increase following the potential growth in its partnership with Chinese automobile joint venture SGMW, making other no-frills Wuling models to tackle the Vietnamese market.

"The Hongguang MINI EV is set to play a role in opening the tiny electric vehicle segment in Vietnam," said TMT Motors chairman Bui Van Huu. "It is a commuting tool that people can afford to travel through city traffic in an environment-friendly, comfortable and safe way."

TMT Motors has yet to announce the retail price of the EV but cost-conscious Vietnamese customers expect prices for the tiny car to start at around 100 million Vietnamese dong (about 4,200 U.S. dollars).

Auto distributors in Vietnam posted record profits last year with sales up 33 percent to hit 404,635 units as demand recovered after a two-year slump due to COVID-19.

The development plan for EV industry proposed by the Vietnam Automobile Manufacturers Association said that all vehicles newly registered in Vietnam would use clean fuel by 2035, and after that, local automakers will only focus on manufacturing EVs.