After a difficult U.S. debut, VinFast is betting on its smallest and cheapest car, the VF3, to conquer the Asian market. VinFast is targeting Vietnamese and Asian buyers with this $9,200 10-foot electric mini-SUV.
VinFast, once the third-most valued carmaker, is battling with poor sales. Idle factories drain the company's finances. Consequently, the Vietnamese EV maker expects the VF3 to outsell prior Western versions, according to a report from AP News.
Vingroup head Le Thi Thuy said in an April earnings conference that they expect the VF3 to showcase a "mass appeal."
VinFast's Nasdaq market worth momentarily exceeded General Motors and Ford last year, but investor excitement has since dwindled, with shares selling below $4 from $82.35. The corporation faces delays in building a $4 billion North Carolina facility, as well as legal difficulties from a California tragic collision and patent infringement.
VinFast Aims at Emerging EV Markets in Asia
The VF3 targets emerging Asian markets, where motorcycle-to-car buyers may be less picky than Americans. The five-person automobile can handle small city roads at 3.1 meters in length and 1.6 meters in width and height.
VinFast plans to sell 20,000 VF3s in Vietnam this year, with August delivery. With a deposit, Shopee sells the automobile for $2,000. More than 27,000 people requested to purchase the car within the first three days after orders opened on May 13.
VinFast expects to market VF3 in the Philippines this year, Indonesia, Thailand, the United States, and Europe next year. Since opening its Jakarta showroom in April, it has sold 600 SUVs to Indonesian corporations.
Check more info about the possible game-changer EV in the video below:
VinFast faces severe competition from Chinese EV companies like BYD, which offer economies of scale. VinFast's strong charging infrastructure in Vietnam and nationalist attitudes may give it an early advantage in its native market.
Moreover, the corporation is building a manufacturing plant in India. Early this year, VinFast reportedly plans to build its first production line to expand globally. Sources said the proposed Tamil Nadu facility would make EV batteries.
Despite comparisons to Tesla and BYD, VinFast has kept its development intentions modest. The firm said it will reveal the details of its plans at an "appropriate time," per a TechTimes report.
Sources report seeing VinFast personnel inspecting potential Thoothukudi district sites. The move highlights the EV maker's attempts to solidify its production presence in India's growing market.
Asian EV Industry to Sustain Growth This Year
According to Statista, the Asian EV industry is expected to produce US$342.1 billion in 2024 and US$428.2 billion by 2028, growing at 5.77%. The industry expects to sell 9.30 million automobiles at an average price of US$47,500 by 2028.
In 2024, China is projected to dominate the market with US$319 billion. In Japan, government programs have increased EV usage and charging infrastructure.
The report also highlighted that government subsidies and incentives entice Asian customers to buy EVs for their environmental and cost benefits. Market trends include extended driving ranges, battery technology breakthroughs, and more models. These variables encourage innovation and enhance EV performance and features.
While China vigorously supports EV use, other nations with less developed infrastructure could catch up as technology and charging stations expand.
