Largest taxi company in Nghệ An cancels car purchase contract with Toyota to switch to VinFast

Mr. Ho Chuong, CEO of Son Nam International Transport Co., has recently disclosed that he had previously signed contracts to purchase gasoline-powered vehicles from a Japanese car manufacturer. However, he has since diversified his investment portfolio by also venturing into VinFast electric vehicles, in order to embrace long-term and sustainable development.

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The most famous brand of taxi in Nghe An province, the driver-turned-entrepreneur, held a discussion with reporters after the remarkable information about MaiLove electric taxis.

Recently, Son Nam International Transport Company has launched the first electric taxi service in Nghe An province under the MaiLove brand with 305 electric vehicles rented from Green and Smart Mobility (GSM) Joint Stock Company. A renowned taxi business with a large fleet of gasoline cars has added electric vehicles to its business model. I would like to know if this move is part of a strategy to establish a brand or if it has other motives.

We have never thought of gimmicks to establish a brand. First of all, the launch of the Electric Taxi by Son Nam International Transport Company is a step in line with the Party and Government’s orientation on the development of green and clean public transportation. On July 22, 2022, the Prime Minister issued Decision No. 876/QD-TTg approving the Action Program on green energy conversion, reducing carbon and methane emissions in the transportation sector. The program aims to develop a green transportation system, with the goal of achieving zero net greenhouse gas emissions by 2050. Immediately after that, the People’s Committee of Nghe An province and the Department of Transport issued plans and official letters to implement the government’s programs.

These are very specific steps that Vietnam is taking in the global trend, prioritizing the adoption of new technologies, changing modes of transportation, and shifting to alternative fuels to minimize environmental pollution. We want to contribute to the country’s overall development direction.

Especially, we have been operating a taxi service for nearly 20 years and are the leading transport unit in Nghe An province with nearly 700 taxis, gaining customer trust for the MaiLove brand. Therefore, the launch of electric taxis is also our responsibility to the community and an inevitable trend of the times.

At the moment, MaiLove is still operating both gasoline and electric cars, but we hope to gradually replace the entire fleet with electric taxis to bring benefits to the community.

I heard that you had previously signed a contract to purchase a new gasoline car fleet from a Japanese car manufacturer, but then changed your decision and chose VinFast electric cars. What is the truth behind this information and is there any special reason behind that decision?

That’s correct. In August 2023, we signed a contract to purchase a new Vios car fleet from Toyota. However, after researching the market and studying the government’s guidelines for the transport industry in the future, we realized that investing in green vehicles is essential for the development of public transport companies.

At the same time, GSM was looking for partners in Nghe An province to sign a cooperation agreement and transfer green technology in public transportation. Therefore, we decided to cancel the contract to purchase gasoline cars and actively switch to electric vehicles.

We see our cooperation with GSM as a long-term and sustainable strategy, as well as a gateway for Son Nam International Transport Company to integrate and develop in line with the global trend.

After the launch of the electric taxi service, what feedback have you received from the market and from a business perspective, what benefits do you think Son Nam will gain from using electric vehicles?

Although it has only been implemented for a short period of time, we have received positive and optimistic signals from the market regarding our new service. In the future, I hope that customers will always accompany us on our development journey.

Regarding the benefits of electric taxis for the community and society, everyone can see it right away. For companies like ours, specific benefits in terms of service quality and operating costs will take more time to give accurate answers. However, based on feedback from some partner companies, electric vehicles can help us save a lot of energy costs and maintenance compared to gasoline cars. Managing and operating an electric vehicle fleet will also be simpler with the support of smart technologies, thus helping us reduce staffing costs. In addition, electric cars are a new type of vehicle, so I believe that they will attract more customers.

Recently, VinFast and GSM have been collaborating with 27 other car manufacturers nationwide to switch to electric vehicles. What do you think about this, as Son Nam has also joined the ranks of transformation?

This means that we have a common voice and a shared vision for the future of the taxi transport industry. Due to the community and the inevitable trend of using green energy vehicles in the transportation industry, our cooperation with VinFast and GSM, joining the ranks of transformation, is the right step for Son Nam in the future. Currently, Son Nam is still developing both gasoline and electric vehicles simultaneously. Therefore, ensuring the balance of benefits for laborers and business interests is the challenge that Son Nam must address at present.

With pioneering companies like Son Nam, VinFast, GSM, and many others, what do you expect for a greener future in transportation in the coming time?

Thank you!

SOURCEcafef
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