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Friday, December 8, 2023
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VinFast falls well short of its goal, only sells under 50,000 EVs in 2023.

Vietnamese electric vehicle maker VinFast plans to deliver 40,000 to 50,000 vehicles in 2023, a significant increase from the 7,400 EVs it sold last year. However, analysts believe this goal is unrealistic considering the company’s weak performance in the first half of this year, during which it delivered only 11,315 vehicles. Of those, 7,100 were sold to a Vietnamese taxi company controlled by VinFast’s parent company. Additionally, only 137 VinFast EVs were registered in the US through June. These numbers have raised concerns over the demand for VinFast’s electric vehicles.

Despite the skepticism from analysts, VinFast remains optimistic about its expansion plans. The company aims to compete with global automakers and has established operational facilities and sales networks in Vietnam, North America, and Europe. VinFast’s CEO, Lê Thị Thu Thủy, announced ambitious plans to deliver seven models globally over the next two years. However, the company’s models are not competitively priced compared to established competitors like Tesla. VinFast’s VF9 model, for example, starts at $83,000, while the Tesla Model X is priced from $68,590 after tax credits and savings on gas. Analysts have questioned the pricing decision, suggesting that it may hinder VinFast’s sales volume in foreign markets.

While VinFast experienced a significant increase in its share price after its initial public offering, it has since dropped more than 60%. The company expects to break even by the end of 2024. Despite challenges and doubts from analysts, VinFast remains committed to its goal of delivering a large number of electric vehicles and expanding its presence in international markets.

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