Vietnamese electric vehicle manufacturer VinFast is preparing for a major expansion into Sweden through Green SM, a rapidly growing taxi operator backed by billionaire Pham Nhat Vuong. The company has reportedly received authorization to operate a fleet of up to 2,500 taxis in the country, a development that could significantly reshape Stockholm’s competitive taxi market.

The move marks an important step in VinFast’s European expansion strategy, introducing its electric vehicles to Swedish roads through commercial transportation rather than traditional retail sales. However, the scale of the planned operation has already triggered a strong reaction from established industry players, with Taxi Stockholm questioning the decision to authorize such a large fleet in an already competitive market.

Green SM Plans a 2,500-Vehicle Electric Taxi Fleet in Sweden

According to Swedish automotive publication CarUp, Green SM has received a license allowing it to operate as many as 2,500 taxis in Sweden. The company plans to use electric vehicles supplied by VinFast, the Vietnamese automaker that has been expanding its international presence in recent years.

The proposed fleet is particularly significant when compared with the scale of existing taxi operators in Stockholm. Taxi Stockholm, one of the Swedish capital’s established transportation providers, operates approximately 1,900 vehicles. Green SM’s authorized fleet would therefore exceed that figure by around 600 vehicles if the entire allocation were put into service.

Such an expansion could make VinFast-branded electric taxis an increasingly familiar sight across Stockholm, despite the manufacturer not yet having established widespread sales to private customers in Sweden.

The distinction is important: entering a market through a large commercial fleet can give an automaker visibility and real-world operating experience without first building an extensive retail dealership network. For VinFast, Green SM could provide a direct route into the Swedish market while introducing its vehicles to thousands of passengers.

However, authorization for 2,500 vehicles does not necessarily mean that the entire fleet has already been deployed. The actual pace of expansion will determine how quickly Green SM becomes a major presence in Sweden’s taxi industry.

Taxi Stockholm Criticizes the Decision

Green SM’s planned entry has not been welcomed by everyone. Pernilla Samuelsson, CEO of Taxi Stockholm, has criticized the Swedish Transport Agency’s decision to grant authorization for an operation of this scale.

Speaking to Aftonbladet, Samuelsson expressed disbelief that the license had been approved, arguing that the Swedish taxi market is already oversaturated.

Her concerns reflect the competitive pressure that a large new operator could create, particularly if it introduces hundreds or thousands of vehicles into a market where established companies are already competing for passengers.

The potential impact extends beyond the number of cars on the road. A new operator with access to its own electric vehicle supply, centralized fleet management and a different employment model could challenge existing taxi businesses on operating costs, driver recruitment and service availability.

For Taxi Stockholm, the prospect of a rival operating a fleet larger than its own represents a substantial competitive challenge. For passengers, however, increased competition could potentially create additional transportation options, although the ultimate effect on fares and service quality remains to be seen.

Who Is Behind Green SM and VinFast?

The Swedish expansion is backed by Vietnamese billionaire Pham Nhat Vuong, founder of Vingroup, a major Vietnamese conglomerate with business interests spanning real estate, hospitality and automotive manufacturing.

Vingroup is the parent company behind both VinFast and Green SM, linking the vehicle manufacturer directly to the taxi operator that will use its cars.

Green SM was launched in 2023 and has pursued a business model built around electric vehicles and a dedicated taxi operation. Rather than relying exclusively on independent drivers using their own cars, the company primarily operates vehicles supplied by VinFast and offers drivers a fixed base salary.

This structure gives the wider business group an opportunity to develop both sides of the electric mobility equation: manufacturing the vehicles and operating a transportation service that puts them to work.

The strategy also creates a potential advantage for VinFast. A large taxi fleet can generate recurring demand for its vehicles while providing operational data and exposing the brand to customers who might later consider purchasing an electric car.

Nevertheless, the success of this approach depends on factors such as vehicle reliability, charging infrastructure, maintenance costs and the ability to keep the fleet operating profitably.

VinFast Uses Taxi Fleets to Expand Its European Presence

VinFast has invested heavily in electric vehicle development and has sought to establish itself beyond its home market of Vietnam. The company has previously entered the United States and several European markets, although its presence and sales volumes vary considerably between countries.

Sweden presents an interesting opportunity for the manufacturer. Electric vehicles already play an important role in the country’s automotive market, making it a potentially attractive environment for a business built around all-electric taxis.

Instead of depending solely on private buyers to recognize an unfamiliar brand, VinFast can use Green SM’s vehicles to establish a visible presence on Swedish streets. Taxi passengers will encounter the cars in everyday situations, while commercial operators can assess their suitability for intensive use.

The approach could also help the manufacturer build familiarity with its design, technology and brand identity before pursuing a broader retail strategy.

However, operating a taxi fleet is not the same as establishing a successful passenger-car business. Fleet operators prioritize total cost of ownership, vehicle uptime, charging speed, durability and access to servicing. These factors will be crucial in determining whether VinFast can turn the Swedish expansion into a sustainable long-term operation.

Green SM Has Already Expanded Into Denmark

Sweden is not Green SM’s first European market. The company has already established a presence in Denmark, where it has introduced approximately 600 electric vehicles from VinFast for taxi services.

The Danish operation provides a useful starting point for the company’s wider European ambitions. It also demonstrates how Green SM can introduce VinFast vehicles into a new country through a coordinated fleet operation rather than relying entirely on individual vehicle sales.

Expanding into Sweden would increase the company’s geographical reach while potentially creating opportunities to build a larger regional electric mobility business.

Still, scaling from Denmark to Sweden will require more than simply adding vehicles. Green SM will need to establish efficient local operations, recruit drivers, maintain its fleet and ensure that charging infrastructure can support its planned level of activity.

The Swedish authorization gives the company room to grow, but the number of vehicles actually deployed will be a more meaningful measure of its progress.

Fixed Salaries Set Green SM Apart From Many Taxi Platforms

Another distinguishing feature of Green SM’s business model is its approach to driver compensation.

While many app-based taxi services rely heavily on independent drivers who use their own vehicles or operate under flexible arrangements, Green SM primarily uses its own electric cars and offers drivers a fixed base salary.

Previous reporting by Aftonbladet put the monthly salary for drivers in Sweden at just under 28,000 Swedish kronor, equivalent to approximately €2,500, depending on the exchange rate.

A fixed salary can offer drivers more predictable earnings than a model based entirely on completed trips. For the operator, employing drivers within a more centralized structure can also make it easier to coordinate shifts, vehicle use and service standards.

However, the model comes with its own financial considerations. Maintaining a large fleet and paying fixed salaries creates ongoing operating costs, even when demand fluctuates. Green SM will need to generate sufficient passenger revenue to cover those expenses while remaining competitive with established taxi companies.

Its performance in Sweden will therefore provide an important test of whether the combination of company-operated electric vehicles and salaried drivers can succeed at scale in a mature European market.

Can VinFast and Green SM Reshape Stockholm’s Taxi Market?

Green SM’s planned expansion puts two distinct business strategies into direct competition. Established operators such as Taxi Stockholm have an existing customer base and a recognized presence in the city, while Green SM enters with a large potential fleet, electric vehicles from its affiliated manufacturer and a different approach to driver employment.

If the company deploys all 2,500 authorized taxis, its fleet could become one of the most significant in the Swedish market. That scale could give Green SM considerable visibility and the ability to compete for passengers across a broad operating area.

For VinFast, the arrangement offers an opportunity to introduce its vehicles to Sweden without immediately depending on large-scale private sales. For Green SM, it provides a route to expand its electric taxi business into another European country.

The biggest question is whether the company can translate its fleet authorization into a profitable operation without intensifying the concerns already raised by established competitors.

Source: CarUp; Photo: Green SM