Journalist’s Note | Chinese New Energy Vehicles Become a Common Sight on the Streets of Laos
In recent years, brands like BYD, Chery, and Zeekr have become increasingly prevalent on the streets of major cities in Laos. Thanks to their high quality, innovative designs, and extensive features, Chinese new energy vehicles (NEVs) are gradually establishing a strong presence in the region.
Due to factors such as currency depreciation and rising fuel prices, Laotian consumers have turned their attention towards NEVs in recent years. Chinese automotive companies have quickly recognized this market trend, effectively promoting the local NEV market through a comprehensive industrial chain that includes complete vehicle exports, essential component supplies, and improved charging infrastructure services. As a result, driving an NEV has become seamless not only in the capital, Vientiane, but also in areas such as Luang Prabang and Savannakhet, which are building out charging networks to alleviate concerns about the vehicles’ range.
According to a recent survey by The Japan Economic News, the market share of Chinese vehicles in new car sales in Laos has surged from approximately 5% in 2020 to 19% in 2023. Prior to 2021, the import volume of NEVs in Laos was nearly zero, but just one year later, it accounted for 9% of total vehicle imports, rising to 15% in 2023. These figures indicate that Laos is gradually becoming a prominent stage for Chinese NEVs.
At the NEV exhibition held in Vientiane in March this year, Chinese brands showcased impressive performances. A sales representative from a Chinese automotive company stated that for a single model, monthly sales at a local dealership can stabilize at around a dozen units. “Chinese NEVs have become synonymous with quality and reputation, gaining favor among an increasing number of local drivers and families,” he added.
The Marketing Director of Vientiane Automotive Market Co., Ltd., De Den Savang Chao Manioun, noted that the growth rate of NEV sales in Laos in 2024 is expected to be the fastest in recent years. Currently, most consumers prioritize NEVs for their excellent cost-performance ratio, modern design, and outstanding safety features, making Chinese NEVs particularly popular. To support this trend, the Laotian government is actively promoting the construction of charging infrastructure, planning to add more charging stations in urban areas, along major highways, and in other provinces. This initiative is expected to spur rapid growth in the NEV market in Laos.
From the implementation of infrastructure projects like the China-Laos Railway to the continuous influx of Chinese NEVs into Laos, there is a synergy between the Laotian government’s trust in “Chinese technology” and the public’s preference for “Chinese manufacturing.” Chinese industries are establishing hard connections and soft power, resonating within Laos’s economic and social landscape. Today, Chinese NEV companies are carving out new opportunities along the Mekong River, paving a new industrial path with green principles.
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