The Rise of Electric Car Rental Services

Electric cars are gaining popularity among individuals and businesses due to their lower operating costs compared to gasoline vehicles. This has led to an increase in the demand for purchasing and renting electric cars, with some people even buying mini electric cars to satisfy their curiosity and renting them out for extra income.

Rising Demand for Electric Car Rental

Green Future Trading and Services JSC (GF) has recently signed an agreement with First Real Estate JSC to rent 1,000 VinFast electric cars for the development of green tourism this year. First Real will provide car rental and transportation services using the VinFast electric fleet rented from GF. In addition, First Real will collaborate with domestic and international travel agencies to expand their electric car rental network.

Similarly, Ngân Lực Investment and Development JSC has rented 200 VinFast VF8 and VF9 electric cars from GF to provide long-term transportation services for partner enterprises. GF, on the other hand, offers short-term car rental services for individuals and has partnered with numerous large enterprises to implement long-term car rental packages. So far, GF has collaborated with over 10 corporate partners and rented out more than 2,000 VinFast electric cars on a long-term basis. The company also provides short-term rental services, with daily, weekly, and monthly options available to individual customers at affordable rates.

Mr. Võ Quốc Bình, representing the Togo Group Joint Stock Company, shared that the company plans to invest in approximately 3,000 electric cars as part of their strategy to embrace the growing trend of electric mobility. In the initial phase, they will introduce hundreds of electric cars into the rental market, targeting individual customers as a potential segment. Ms. Đoàn Tuyết Mai, owner of a car rental service company in Tân Bình District, Ho Chi Minh City, confirmed that she has transitioned almost half of her gasoline-powered fleet to electric vehicles, resulting in improved profitability due to reduced expenses for maintenance and repairs.

According to the Vietnam Automobile Manufacturers Association, its member companies sold 71,900 vehicles in the first four months of this year. In contrast, the electric car manufacturer VinFast sold 44,700 vehicles during the same period.

Instant Profitability

Not only businesses but also individuals are investing in affordable electric cars, which they use for personal mobility and rent out at competitive rates compared to gasoline cars. According to reports from various provinces, including Cần Thơ, Hậu Giang, and Sóc Trăng, owners of VF3 electric cars are renting them to local tourists and residents for only 200,000 VND per day, which is equivalent to the cost of a modest hot pot meal! In the tourist city of Đà Lạt, Lâm Đồng Province, the daily rental rate for a VinFast electric car is slightly higher, at just over 300,000 VND.

Mr. Chu Văn Minh, a resident of Thủ Đức City, Ho Chi Minh City, used to own a gasoline car that he didn’t need for personal use, so he rented it out to a car rental company. Initially, the rental income was quite attractive, generating over 10 million VND per month. However, over time, the rental rate decreased to 9 million VND in the second year and further dropped to 8 million VND in the third year. After a few years of use, the car became old, and the rental company refused to continue the contract, forcing Mr. Minh to sell the car. Recently, he purchased a VF5 electric car for over 500 million VND and immediately started making a profit by renting it out for more than 500,000 VND per day, without any operating expenses.

According to Mr. Trần Lưu Văn, CEO of Let’s Go An Bình Company, the company has invested in 600 electric cars and plans to add another 500 this year to expand its market reach. “One of the biggest advantages of electric cars is their low operating costs, which helps businesses optimize their expenses,” he said. “In the past, when we operated gasoline-powered vehicles, about 30% of our daily expenses went towards fuel and repairs. In contrast, electric car rentals are 20-30% cheaper than gasoline cars, leading to a decreasing demand for gasoline car rentals,” Mr. Văn added.

Mr. Nguyễn Văn Long, Director of Sigo Vietnam Co., Ltd., acknowledged the intense competition in the car rental industry and the diverse demands of customers. He confirmed that the trend toward electric car rentals is on the rise, and rental companies must adapt by incorporating electric vehicles into their fleets. According to Mr. Long, besides meeting customer demands, these environmentally friendly vehicles also offer significant benefits to rental companies.