MARKHAM, Ontario, October 17, 2024--(BUSINESS WIRE)--The electric vehicle (EV) industry is at a crossroads as government incentives fade and consumer priorities shift. Automaker VinFast is proactively adapting to a new market reality with a customer-centric philosophy to drive widespread EV adoption.

Automakers must now adapt to new market realities by embracing a more direct approach to attracting buyers and making electric vehicles a viable choice for the mainstream market while addressing concerns about affordability and charging infrastructure for new EV owners.

Navigating New Realities with a Customer-Centric Philosophy

One of the most significant challenges now facing the EV sector is the reduction of government incentives, a major driver of early adoption. In the US, tax credits now favor North American-made vehicles. Similarly, European countries like Germany are shifting from broad subsidies to targeted support like charging infrastructure.

In Canada, British Columbia and Quebec are also pulling back on EV incentives. British Columbia has lowered its rebate threshold from CA$55,000 to CA$50,000, while Quebec plans to reduce its BEV incentives by 60% next year, fully phasing them out by 2027. These shifts are raising concerns about the affordability of EVs and could hurt sales.

However, VinFast is navigating the impact of these reduced incentives with customer-focused solutions, leading not just in EV affordability but in automotive affordability in general. The VinFast VF 8, which is packed with tech features, has a price tag starting at roughly CA$53,600, nearly 30% lower than the national average price for an EV (around CA$73,000 in 2023¹) and more than 20% cheaper than a new car (CA$66,000).

VinFast's price advantage is a key part of its strategy to make EVs more accessible. The company aims to offer best-in-class monthly payments, making it easier for consumers to switch to electric vehicles. In fact, the VF 8 is currently the most competitively priced mid-size electric SUV with all-wheel drive on the Canadian market. This affordability significantly reduces cost, and when combined with VinFast’s industry-leading 10-year warranty, makes choosing an electric car an even smarter decision.

But price isn’t the only hurdle for potential buyers; many are also concerned about practical issues like range anxiety and inadequate charging infrastructure. VinFast addresses these concerns by offering access to the most comprehensive roaming and aggregation hub for public charging services in North America. The VinFast app provides more public charging options than any other OEM or third-party app, making it easier for drivers to locate charging stations.

This emphasis on accessible charging solutions is key to boosting consumer confidence, especially as government investments in charging infrastructure have yet to reach their full potential.

Shifting Focus to Mainstream Buyers

As the EV market matures beyond the early-adopter phase, automakers must shift their focus to mainstream consumers—those who prioritize affordability and value over novelty. According to a report by the accounting firm Ernst & Young, sales to this segment, which still cares about environmental impact but weighs costs more heavily, have yet to take off².

To appeal to this new wave of buyers, automakers can consider following a three-pronged strategy:

1. Transparent pricing – Clear and detailed breakdowns of total costs, including purchase price, energy consumption, and maintenance expenses, allow consumers to make informed decisions.

2. Educational campaigns – Continued efforts to educate the public about the benefits of EVs, the availability of incentives, and the long-term savings from reduced fuel and maintenance costs.

3. Customer testimonials – Sharing real-world experiences from current EV owners can help potential buyers understand the practicality and reliability of EVs.

A recent study by Plug In America found that while worries about range anxiety and charging infrastructure remain prevalent, these concerns diminish once consumers experience driving an EV³. The study found that 89% of current EV drivers would likely choose an electric vehicle for their next purchase. This underscores the importance of hands-on experiences and real-world education in breaking down the barriers to EV adoption.

VinFast recognizes the critical role of consumer education in this evolving market. By providing transparent information about the total cost of ownership and emphasizing its extensive charging infrastructure, VinFast helps consumers understand the long-term benefits of switching to electric vehicles. This comprehensive approach, coupled with practical solutions like flexible financing, positions VinFast to not only maintain momentum in the EV market but also lead the industry through this transformative phase.

By directly addressing consumer concerns about affordability and infrastructure, VinFast is shaping the future of EV adoption, ensuring that electric vehicles are accessible and appealing to mainstream buyers as the industry moves toward a more sustainable future.

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¹ https://financialpost.com/commodities/energy/electric-vehicles/canada-cant-meet-goal-of-100-ev-sales-by-2035-automakers-say
² https://www.ey.com/en_gl/insights/automotive/how-to-retake-the-momentum-in-ev-transition
³ https://electrek.co/2024/09/06/the-greatest-barrier-to-ev-adoption-lack-of-familiarity/

View source version on businesswire.com: https://www.businesswire.com/news/home/20241017124971/en/

Contacts

John Lindo - jlindo@vinfastauto.com