The electric car market in Nghe An faces strong competition from used cars.

Demand for electric vehicles is increasing.

Following the Lunar New Year holiday, the electric vehicle market in Nghe An has become vibrant. At electric vehicle dealerships in Nghe An, the number of people visiting to view vehicles and placing deposits has increased significantly compared to the same period last year.

A sales representative at an electric vehicle dealership in Vinh City said: "Since the 6th day of the Lunar New Year, we've had many customers visiting the dealership. In just over a week, I've signed three contracts to buy electric vehicles. This is a significant difference compared to the same period last year."

According to some dealership staff, the main reason is that many customers are racing against time to complete the car purchase procedures before the 0% registration fee ends at the end of February 2025.

According to Government Decree 10/2022, battery-powered electric vehicles are exempt from registration fees for three years starting from March 1, 2022. After this date, from March 1, 2025 to March 1, 2027, electric vehicles will be subject to a registration fee equal to 50% of that of gasoline or diesel vehicles in the same segment. This means that from March 2025, customers will have to pay an additional 5-6% of the vehicle's listed price to complete the registration process, depending on the locality.

With the 0% registration fee promotion ending in less than 10 days, customers are taking advantage of the opportunity to save tens to hundreds of millions of VND when buying electric vehicles.

Besides serving personal needs, many customers also buy electric vehicles for transportation services such as taxis and ride-hailing services. The main reason is that the operating costs of electric vehicles are significantly lower than gasoline or diesel vehicles, helping to optimize profits. Another reason for customer interest in electric vehicles is the current construction of many new charging stations in Nghe An province. For example, in the mountainous districts of Que Phong and Tuong Duong, electric vehicle charging stations are being built.

Mr. Tran Van Tam from Vinh City shared: “The electric vehicle market is still quite new, and there are still some minor flaws that manufacturers need to fix, but I still bought it because the product fits my budget, the car is compact and convenient to drive in the city, and it is 100% exempt from registration tax and offers free charging from now until July 2027.”

The used car market is sluggish.

In contrast to the bustling electric vehicle market, the used car market in Nghe An province has been quite sluggish in early 2025. A car showroom owner in Vinh City stated: Used cars in the A- to C segment, priced between 200-400 million VND, such as the Hyundai Grand i10, Kia Morning, VinFast Fadil, and Toyota Vios, were very popular with customers in previous years. While showrooms used to sell 2-3 cars a day, demand for used cars has significantly decreased since the Lunar New Year, sometimes selling only 1-2 cars a week.

The owner of another car showroom in Vinh City shared: "Currently, sales of affordable cars under 500 million VND are slow, while used cars priced over 500 million VND are facing difficulties in transactions because customers tend to switch to new models with similar prices." Showroom owners acknowledge that recently, other car manufacturers and electric car companies have launched many affordable products, which has somewhat affected the sales of used cars.

Mr. Tran Van Minh from Quang Trung ward, Vinh city, said: "A used 2016 CX5, 9 years old, was sold at the showroom for 520 million VND. With that amount of money, I could buy a new gasoline or electric car without worrying about repairs or maintenance. However, some customers still prefer used cars that are only 1-2 years old, as they are in good condition and save on costs. Not to mention, a gasoline car offers more control over fuel consumption for long journeys."

The used car market is sluggish, and many used car showrooms are now hesitant to purchase vehicles with outstanding traffic fines due to the complicated procedures involved in processing and paying those fines.

Besides the used car market, showrooms selling new cars in Vinh City saw very few customers viewing cars or placing deposits in the early days of the year. Reporters also surveyed the districts of Quynh Luu, Dien Chau, Nghia Dan, and Do Luong, where some showroom owners shared: Currently, the used car market is more difficult than in previous years, so we have switched to buying used electric cars to sell to customers.

Check on e-commerce platforms like Chợ Tốt Xe, Bonbanh, Oto.com.vn, Carmudi, fgf.v, or other major e-commerce sites to see if the prices of used cars have decreased compared to before in order to attract customers.

The used car market will face even more difficulties because recently, the prices of new cars from many manufacturers have dropped significantly, and there are many policies to stimulate demand from buyers. Currently, in Nghe An province, quite a few showrooms have converted to buying and selling used electric cars to meet customer needs.