Vietnamese electric automaker VinFast disclosed plans to penetrate Europe with its electric vehicle models as early as this year after it receives the government’s green light, CEO Le Thi Thu Thuy exclusively told Reuters.
VinFast seems to take advantage of the ongoing investigation by the European Union on Chinese automotive brands and their “artificially low” pricing.
“Global markets are now flooded with cheaper Chinese electric cars. And their price is kept artificially low by huge [Chinese] state subsidies. This is distorting our market.”
President Ursula von der Leyen stated in the Commission’s 2023 State of the Union Address (via Which Car)
Plan details
VinFast plans to ship approximately 3,000 VF8 electric crossovers to France, Germany, and the Netherlands in Q4 2023.
Meanwhile, its other EVs, including the VF6, VF7, and VF9, will follow in 2024. However, VinFast Chief omitted to disclose the exact number. According to the source, it will be about 3,000 units, including those meant for Israel.
The models will come from the company’s Vietnamese factory, an unnamed source familiar with the matter told the news agency.
Considering VinFast’s European expansion plan, the region may potentially advance as the automaker’s largest foreign market this year.
For comparison, VinFast exported only around 2,100 EVs early this year to the US market.
“We expect to deliver the first VF8 models to French, German and Dutch customers in the fourth quarter of this year.”
VinFast CEO Le Thi Thu Thuy
VinFast’s market presence
VinFast has just published its Q2 2023 earnings yesterday, indicating a 303% quarter-on-quarter revenue growth.
Electrek further reported that VinFast’s deliveries surged 400% in the same quarter, with 9,535 EVs. This figure boosts its overall deliveries to 11,315 in H1 2023.
As a result, its sales surged 367% from the first quarter to $314 million. Likewise, its gross margins also improved from -73.4% in Q1 to just -34.1% in Q2.
See Also:
- VinFast sees progress in its Europe expansion efforts: ESG results and new partnership
- T-Mobile to provide connectivity for VinFast EVs in North America and Europe
- VinFast to launch 3 new electric crossovers in the US starting in 2023
- VinFast makes Nasdaq debut, valuation tops automotive giants
- VinFast launches its Special Aftersales Policy for its global customers
VinFast’s global expansion efforts demonstrate its commitment to advance in the industry and catch up with leaders like Tesla and BYD. Its dedication is indeed remarkable, considering its previous losses. Now, it seems the brand is on track to hit its goals.
