Interview: VinFast CEO For ASEAN On The Current Oil Crisis & Electrification

VinFast’s CEO for Southeast Asia, Toti Zara, has highlighted a significant shift in the Philippine automotive market driven by recent oil price volatility. While fuel prices have started to ease following a supply shock linked to Iran, the likelihood of a full return to pre-crisis levels appears slim. This structural change is prompting Filipino consumers to reassess their approach to mobility, with VinFast experiencing a notable increase in showroom visits and sales inquiries. Zara emphasises that this surge is part of a longer-term trend rather than a temporary reaction, with fuel price spikes acting as a catalyst that revealed the economic advantages of battery electric vehicles (BEVs). Central to VinFast’s strategy in the Philippines is a focus on addressing the common barriers to EV adoption, particularly high upfront costs and concerns about depreciation. The company’s Battery Subscription Program allows customers to purchase vehicles without the battery, paying for battery use separately via a monthly subscription, thus lowering initial expenses. Additionally, the Residual Value Guarantee program offers reassurance by guaranteeing up to 80 percent of the vehicle’s original price after 12 months, mitigating worries about rapid depreciation. Complementing these initiatives is a three-year free charging scheme, supported by VinFast’s affiliate V-Green, which aims to expand charging infrastructure and reduce operational costs for EV owners. Despite these efforts, the transition from internal combustion engine (ICE) vehicles to full electrification remains uneven across different buyer segments. Hybrids and plug-in hybrids continue to dominate as practical intermediaries, offering familiarity and alleviating range anxiety. Zara expects BEVs to gain ground as infrastructure improves and consumer confidence grows, projecting strong double-digit growth in the coming years. Interestingly, first-time car buyers are not currently the primary drivers of BEV adoption; instead, existing car owners who can afford cash purchases are leading the shift. This is largely due to financing challenges and the reliance on a single household vehicle, which heightens concerns about range and backup options. The broader implication is that the recent oil crisis has accelerated a psychological and economic realignment in the Philippine market, fostering greater openness to electric mobility. Zara compares this shift to how the pandemic fast-tracked digital payment adoption, suggesting that the fuel price spike has heightened awareness of BEVs’ cost efficiency. While prices may fluctuate, the longer-term impact may be a sustained change in consumer expectations and behaviour. VinFast’s experience underscores the importance of combining innovative financing, infrastructure development, and market education to support the ongoing transition to electric vehicles in Southeast Asia.