Vietnamese EV maker VinFast is reportedly penetrating the US market after launching in Arizona, as per Cronkite News.
VinFast joined the fiercely competitive US SUV market with its debut of two Italian-designed crossover SUVs at the Los Angeles Auto Show in November. Notably, the automaker also launched two additional new models from the previous year.
Possible constraints in the US market: Price and Competition
The influx of new electric models from well-known automakers and the continuously higher price of EVs compared to gasoline-powered vehicles caused analysts to think that success in the US market will take much work.
“Americans want … the best thing for the cheapest price. And that’s hard to do with electric cars.”
Brian Moody, Kelley Blue Book’s author
Despite Tesla‘s success, Edmunds’ Executive Director Jessica Caldwell pointed out that the market is difficult for startups because major manufacturers are now producing more electric models, which might drive out new competitors.
VinFast has tested its vehicles in Arizona alongside other automakers to evaluate how they fare in the summer heat. This result could be VinFast’s edge against its rivals in the US market.
According to Westbrook, the cars performed well in hot conditions.
“We’re trying to capture all of the environmental possibilities that customers face.”
VinFast’s US Chief Service Officer Craig Westbrook
About VinFast
As a part of VinGroup, a collection of private Vietnamese companies engaged in everything from technology to real estate, VinFast was established in Vietnam in 2017. Initially, it produced gas-powered automobiles, but it is now just making battery-powered versions.
VinFast’s expansion efforts
At the Los Angeles Auto Show in 2022, VinFast debuted two crossovers, the subcompact VF6 and the small VF7. They added the midrange VF8 and the larger VF9, both of which are already available for purchase outside the United States.
Last year, VinFast also came to the Los Angeles Auto Show to demonstrate its desire to join other automakers in selling cars globally. According to VinFast’s US Chief Service Officer Craig Westbrook, VinFast has made significant steps towards its goal of global recognition during the past 12 months.
With this, VinFast officials claimed that it had sold 65,000 EVs internationally.
At the end of November, VinFast started its first shipment of VF8s to the United States. According to Craig Westbrook, the remaining models will be available in 2023.
In light of nationality, analysts believe VinFast’s Vietnamese heritage will not deter purchasers because Americans no longer care where the cars are built.
“I don’t think American consumers necessarily are that consumed by the nature of the vehicle brand, whether it’s from Vietnam, or Korea or wherever it may be.”
Jessica Caldwell, Edmunds’ Executive Director
Further plans
Although VinFast produces its vehicles in Vietnam, the company revealed plans to construct a facility outside of Raleigh, North Carolina, in March. The factory is expected to open in 2024 and employ 1,000 people.
VinFast’s EV offerings
The VF6 has a single electric motor that produces 174 horsepower, while the enhanced model will have 201 hp.
On the other hand, electric motor options for the VF7 include one with 201 horsepower and two with 349 horsepower. However, VinFast has not disclosed information about the new vehicles’ expected driving range, battery capacity, or price.
For reference, the VF8 starts at $57,000. The automaker allows buyers to rent the battery of the car rather than purchase it for $169 per month with an unlimited range. This move is aimed at lowering the vehicle’s base price to $42,200.
