VinFast launches in US, Europe – wants to challenge Tesla, General Motors and Volkswagen

Market entry with the battery-powered crossover model VF e35

Vietnam’s first domestic car manufacturer, VinFast, has officially launched operations in North America and Europe on July 12 by opening representative offices in the US, Canada, France, Germany and the Netherlands, its key markets for now, the company said in a same-day release, adding that it would open showrooms in California shortly.

The carmaker is heavily betting on electric vehicles and has initially set itself a target of selling 56,000 battery-powered cars in 2022, but scaled that back to 15,000 units due to the global chip shortage.

VinFast, which is owned by Vietnam’s largest private conglomerate Vingroup, will enter the international markets with two electric car models, VF e35, a crossover placed in the BMW X3 segment, and VF e36, a compact SUV in the Audi A2 segment, in March next year. The carmaker aims at no less than challenging the likes of Tesla and General Motors in the US and Volkswagen’s electric cars in Europe.

Affordable pricing, leasing model for batteries

The vehicles, all of which are made in Vietnam, are expected to come at an affordable price range. The company’s first domestic electric car model, VF e34, had a price tag of about $29,000.

However, VinFast is further offering a battery leasing scheme, meaning the cost of the battery – one of the most expensive components of an electric car – will not be included in the sales price. The batteries of a VinFast car, which use cells from South Korea’s Samsung SDI, will be replaced by the company when they reach 70 per cent of their full lifespan. The batteries are claimed to provide a range of up to 500 kilometers on a single charge.

Online sales channel for VinFast cars

In the US, the Vietnamese carmaker also plans to sell vehicles online in order to reduce the cost of a dealership network.

Currently, VinFast has a manufacturing facility in Vietnam with a capacity of producing 250,000 cars per year. The company reported annual sales of around 30,000 units in 2020 in its home country and is aiming to sell more than 45,000 units this year.



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Market entry with the battery-powered crossover model VF e35 Vietnam's first domestic car manufacturer, VinFast, has officially launched operations in North America and Europe on July 12 by opening representative offices in the US, Canada, France, Germany and the Netherlands, its key markets for now, the company said in a same-day release, adding that it would open showrooms in California shortly. The carmaker is heavily betting on electric vehicles and has initially set itself a target of selling 56,000 battery-powered cars in 2022, but scaled that back to 15,000 units due to the global chip shortage. VinFast, which is owned...

Market entry with the battery-powered crossover model VF e35

Vietnam’s first domestic car manufacturer, VinFast, has officially launched operations in North America and Europe on July 12 by opening representative offices in the US, Canada, France, Germany and the Netherlands, its key markets for now, the company said in a same-day release, adding that it would open showrooms in California shortly.

The carmaker is heavily betting on electric vehicles and has initially set itself a target of selling 56,000 battery-powered cars in 2022, but scaled that back to 15,000 units due to the global chip shortage.

VinFast, which is owned by Vietnam’s largest private conglomerate Vingroup, will enter the international markets with two electric car models, VF e35, a crossover placed in the BMW X3 segment, and VF e36, a compact SUV in the Audi A2 segment, in March next year. The carmaker aims at no less than challenging the likes of Tesla and General Motors in the US and Volkswagen’s electric cars in Europe.

Affordable pricing, leasing model for batteries

The vehicles, all of which are made in Vietnam, are expected to come at an affordable price range. The company’s first domestic electric car model, VF e34, had a price tag of about $29,000.

However, VinFast is further offering a battery leasing scheme, meaning the cost of the battery – one of the most expensive components of an electric car – will not be included in the sales price. The batteries of a VinFast car, which use cells from South Korea’s Samsung SDI, will be replaced by the company when they reach 70 per cent of their full lifespan. The batteries are claimed to provide a range of up to 500 kilometers on a single charge.

Online sales channel for VinFast cars

In the US, the Vietnamese carmaker also plans to sell vehicles online in order to reduce the cost of a dealership network.

Currently, VinFast has a manufacturing facility in Vietnam with a capacity of producing 250,000 cars per year. The company reported annual sales of around 30,000 units in 2020 in its home country and is aiming to sell more than 45,000 units this year.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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