Vietnamese electric automaker VinFast tested its luck in the US market as it believes in its potential to appeal to the wider American customers, The Associated Press reported.
“We wanted to go make our name in a very difficult market. Our rationale was very simple. If we can make it there, I mean, people will believe in us. So it’s an approval stamp to some extent. But it is very difficult.”
VinFast CEO Le Thi Thu Thuy
US market presence
As of now, VinFast has only confirmed four electric vehicle models in its US portfolio. The mid-size VF8 already sells on the Californian market.
VinFast also introduced the three-row VF9 with a base price of $83,000, the VF6 subcompact, and the VF7 compact in the region.
It is also currently developing its first local production plant in North Carolina as it aims to boost sales and deliveries in the coming years.
However, VinFast CEO Le Thi Thu Thuy asserted in an interview with the publication that the risk it took for the US expansion has yet to be profitable.
The Chief indicated that the US market remains “difficult” for the foreign company.
VinFast sales performance
Motorintelligence.com reported that VinFast EV sales in the country only reached 2,009 electric vehicles, just below 1% of the overall market segment.
As for its global performance, VinFast sold 19,562 units from April to September. Disappointingly, it is significantly short of its 2023 guidance of 50,000 unit sales, The Manila Times indicated.
Nonetheless, the automaker remains committed to advancing in the electric vehicle industry and contributing to the global shift to clean mobility.
In that sense, it announced plans to focus on the US market despite significant impediments such as strict regulations, media scrutiny, and VinFast advisers’ opposition.
Background
VinFast is an electric vehicle business unit of the famous VinGroup, a Vietnamese conglomerate that originally emerged as an instant noodle firm in Ukraine in the 1990s.
It developed its inaugural vehicle in 2019 in a production plant near Haiphong. In mid-August, VinFast officially registered the company shares on the Nasdaq stock market.
Its market valuation grew more than twofold to $82.35 pinnacle, overthrowing legacy American automakers like General Motors and Ford. As of now, the company shares trade at approximately $5.70.
Despite VinFast’s challenges in expanding in the US market, it remains committed to succeeding with its innovative EV offerings and advanced in-car technologies. In fact, it invested $4 billion to develop its EV factory in Raleigh, North Carolina, to support its planned production ramp-up. VinFast expects to commence local production as early as 2024.
Sun Star also reported VinFast’s plans to begin European deliveries later this year. Moreover, it aims to penetrate Southeast Asia, India, and the Middle East with a $400 million investment for new local factory developments.
