Vietnam Defines Extended-Range EVs (EREVs) for the First Time

The Ministry of Construction has officially introduced "Extended-Range Electric Vehicles" (EREVs or REEVs) as a new vehicle classification in amended regulations, effective from July 1, 2024. This move marks Vietnam's first formal recognition of this vehicle type. EREVs, also known as REEVs, are battery-powered electric vehicles (BEVs) equipped with an internal combustion engine. However, this engine's sole function is to drive a generator that supplies power to the electric motor, which is the only component directly propelling the vehicle. The internal combustion engine does not directly engage with the drivetrain. Key criteria for an EREV include that the internal combustion engine cannot be manually activated by the driver when the battery's State of Charge (SoC) exceeds a specified limit, except for special modes like maintenance or safety checks defined by the manufacturer. Furthermore, the pure electric range (AER) under the NEDC cycle must meet specific thresholds: 250 km or more classifies it as "EREVeb" (electric based), while 150 km to less than 250 km is designated as "EREVep" (electric priority). The primary advantage of EREVs lies in their ability to extend the driving range of BEVs, thereby reducing reliance on extensive charging infrastructure. Currently, no EREV models are officially distributed in Vietnam. This new classification is expected to provide a basis for authorities to implement regulations concerning taxes, such as special consumption tax and registration fees, as well as other policies related to electrified vehicles. Alongside EREVs, the amended regulations also detail other forms of electrified vehicles based on the motor's involvement in the powertrain: * Mild Hybrid Electric Vehicle (MHEV): The lowest level of hybridization, where the electric motor assists the engine during stationary periods and acceleration but does not operate independently. * Full Hybrid Electric Vehicle (FHEV): The most common hybrid type, further divided into series, parallel, and series-parallel configurations. These vehicles can operate on electric power alone, and their batteries are not externally rechargeable. * Plug-in Hybrid Electric Vehicle (PHEV): An evolution of FHEVs, featuring batteries that can be charged from external sources. PHEVs generally have larger batteries and longer pure electric ranges. Chinese brands like BYD, Geely, and Lynk & Co are prominent in this segment in Vietnam. * Battery Electric Vehicle (BEV): Vehicles powered entirely by electric motors, with batteries recharged from external sources. VinFast is the dominant brand in this category in Vietnam. The Vietnamese government is actively promoting the development of the electric vehicle market through various tax incentives and preferential policies.