Why are transportation companies switching from gasoline to electric vehicles?

The cost of fuel, maintenance, and repairs for electric vehicles is significantly lower than that of gasoline-powered cars, allowing businesses to save billions of dollars while improving service quality and contributing to environmental protection. It is a "1 investment with 3 returns" proposition that is driving the rapid transition to electric vehicles for transportation companies, even prompting them to terminate existing contracts without hesitation.


“Positive Customer Feedback for Electric Cars”

Taxi MaiLove is a popular name in Nghe An, and it is the newest transport company on the long list of companies renting or buying electric cars from the Green and Smart Mobility Joint Stock Company (GSM).

In a recent press release, Mr. Ho Chuong, CEO of Son Nam, revealed that the company had previously signed a contract to buy a new fleet of Toyota Vios cars. However, Son Nam decided to cancel the deal and switch to VinFast electric cars. According to Mr. Ho Chuong, the company wants to contribute to the development of clean public transportation in Vietnam. This is also a way for companies like Son Nam to demonstrate their responsibility to the community.

Son Nam is one of the many companies that have partnered with GSM to switch to electric taxis.

Son Nam is one of 27 transportation companies that have switched to electric cars along with VinFast and GSM. Before Son Nam, there were other well-known companies such as Be Group, Ahamove, LADO, Én Vàng, Bạn Uống Tôi Lái, Bách Đại Dũng, ASV, Xanh Sapa, etc. Many of these companies have seen improvements in all aspects, especially service quality and customer experience, since switching to electric cars.

According to Mr. Le Thai Khac Thanh, Deputy CEO of Ecogo, the company has received positive feedback from customers since introducing VinFast electric cars for its taxi service. Mr. Thanh mentioned that customers highly appreciate the driving experience of electric cars, especially their quick acceleration and smooth and quiet operation. Many customers also feel comfortable and relaxed while riding in electric cars.

Customers also appreciate the environmentally friendly nature of electric cars, which helps reduce air pollution and greenhouse gas emissions“, Mr. Thanh expressed his satisfaction with the company’s decision to switch to electric vehicles.

Cost-effective and Durable

Electric cars not only improve the quality of transportation services but also offer cost savings. According to Mr. Le Thai Khac Thanh, for a distance of 100,000 km, the energy cost of the VinFast VF e34 electric car is only about one-third of the fuel cost for a Honda City petrol car. Therefore, the company could save around 2.5 billion VND in fuel costs over a 5-year period (based on current fuel prices).

Maintenance and repair costs for electric cars are also significantly lower. Mr. Thanh explained that electric cars require fewer maintenance efforts compared to petrol cars, as they do not require engine oil changes, air filter replacements, spark plug replacements, etc. Moreover, electric cars have fewer issues with engine or transmission failures since they do not have internal combustion engines. As a result, electric cars have higher durability and significantly lower repair costs compared to petrol or diesel cars. Mr. Thanh estimated that the company could save about 1.5 billion VND on maintenance and repair costs over a 5-year period.

“In total, using electric cars helps the company save about 4 billion VND over 5 years. This is a significant amount that reduces the company’s operating expenses and increases profitability“, concluded Mr. Thanh.

For employees, Mr. Thanh believes that electric cars provide a better working environment due to their quiet and emission-free nature, reducing the risk of respiratory diseases for drivers.

From a broader perspective, Mr. Tran Nhat Truong, CEO of Bạn uống tôi lái (BUTL), a company that has leased 5,000 electric motorcycles from VinFast for ride-hailing and delivery services, believes that adopting electric vehicles can differentiate and gain trust from customers. In countries and regions where the use of electric cars is encouraged, switching to clean vehicles can help businesses penetrate new markets and expand their operations in the future. Therefore, BUTL plans to expand its electric vehicle fleet in the near future.

Electric cars have become a popular choice for many transportation and delivery companies.

In line with this viewpoint, Ecogo representative affirmed that the company will continue to invest in new electric vehicles to replace the old ones. Furthermore, the company may encourage its employees to use electric cars to contribute to environmental protection. Én Vàng Taxi also revealed plans to gradually switch to electric vehicles, with a goal of making 50% of its fleet electric by 2025.

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