Vinfast is planning to enter the Indian market this year.
On Thursday, the Vietnamese electric vehicle (EV) manufacturer VinFast reported that it delivered nearly 35,000 cars in 2023. This figure falls short of its goal to deliver at least 40,000 units. The company attributes this shortfall to a combination of factors: slow EV adoption in certain regions, intense competition in the industry, and the overall uncertainty in the global economy. Despite these challenges, VinFast experienced a notable increase in deliveries during the last quarter of 2023. Deliveries in this period rose by 35% compared to the third quarter, reaching 13,513 units.
VinFast, known for launching its sport utility vehicle (SUV) VF 8 in California in March of last year, recently announced plans to establish manufacturing and battery facilities in India. The company is also looking to broaden its market presence in the Middle East, Latin America, and Asia, including Indonesia. Tran Mai Hoa, VinFast’s Deputy CEO of Sales and Marketing, highlighted in a statement the significant increase in vehicle deliveries during the fourth quarter of 2023 despite the challenging market conditions. She noted that the slower-than-expected EV adoption rate in certain areas contributed to the lower overall delivery figures.
While VinFast didn’t provide a detailed breakdown of its sales across different markets in its Thursday announcement, it was noted that approximately 60% of its deliveries in the second and third quarters were to its affiliate Green SM (GSM). GSM, a Vietnam-based taxi operator and leasing provider, is primarily owned by VinFast’s CEO, Pham Nhat Vuong. In October, a senior VinFast official revealed plans to expand sales to GSM within the year.
As a new entrant in the EV market, VinFast faces the challenge of achieving profitability. The company entered the market during a period of competitive pricing pressures, led by reductions from industry leader Tesla and Chinese firms like BYD.