Vietnam’s taxi market leader GSM faces challenges to drive VinFast’s EV sales
Cab operator’s influence in local electric vehicle sector is seen diminishing as country’s fleets are set to become fully electrified in short term
Add BT as a preferred source
[HO CHI MINH CITY] Vietnam’s top electric vehicle (EV) maker VinFast has relied on its largest buyer Green and Smart Mobility (GSM) to drive sales growth, but with the domestic fleet electrification market becoming saturated and international competition heating up, GSM may no longer be the key growth engine for VinFast in the future.
GSM, founded by VinFast chief executive Pham Nhat Vuong, and operator of the electric taxi brand Xanh SM, has scaled up its fleet exponentially to gain dominance in Vietnam’s ride-hailing sector and enter new countries in South-east Asia in the past two years.
However, its contribution to VinFast’s sales has dwindled, as the carmaker has managed to diversify its customer base lately. VinFast’s EV deliveries to related parties, mainly GSM, fell from around 72 per cent in 2023 to just 38 per cent in the first nine months of 2024, the carmaker’s earnings reports stated.
TRENDING NOW
CSE Global independent director quits after clashes with chairman Eugene Lai over board refresh
What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future
‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse
Rare brutalist Singapore house opens to the public before changing hands
