Mai Linh Taxi plans to replace its fleet with electric cars over the next five years. Photo: Diep Duc Minh
French major automaker Renault Group has struck a deal with a local cab company to sell 10,000-20,000 electric cars over the next five years, news website Bao Dau Tu reported on Wednesday.
Mai Linh, the second largest taxi company in the country, signed a memorandum of understanding with Renault's importer Auto Motors Vietnam last week.
According to the plan, 30 first cars will be used on a trial basis in the first quarter next year in Hanoi, before more cars are launched in Ho Chi Minh City and the central city of Da Nang.
Its goal is completely replace its fleet with electric cars, the website reported. It now has more than 14,000 gasoline cars.
Besides the fact that they are more eco-friendly, electric cars' rate is expected to be also cheaper, which allows prices to be cut to VND8,000 per kilometer compared to VND12,000 per kilometer at the moment, Mai Linh chairman Ho Huy was quoted as saying.
The deal is estimated to cost Mai Linh around 500 million euro, or over US$544 million, he said.
In Vietnam, the use of electric buses and cars is now limited to city tours in several cities such as Hanoi and Ho Chi Minh City.