18-1-2024 (HANOI) Vietnamese electric vehicle (EV) manufacturer VinFast reported on Thursday that it delivered nearly 35,000 cars in 2023, falling short of its target of at least 40,000 units. The company attributed the lower-than-expected deliveries to sluggish EV adoption in certain regions, intense competition, and economic uncertainties.
However, VinFast noted a positive trend in the last quarter of 2023, with deliveries increasing by 35 per cent compared to the third quarter, reaching 13,513 units.
VinFast initiated deliveries of its sport utility vehicle (SUV) VF 8 in California in March last year. Despite facing challenges, the company recently revealed plans to establish manufacturing and battery facilities in India. Additionally, it aims to broaden its presence in the Middle East, Latin America, and Asia, including Indonesia.
Tran Mai Hoa, VinFast’s Deputy CEO of sales and marketing, commented on the delivery performance, stating, “We saw a significant ramp up in vehicle deliveries in the fourth quarter of 2023 compared to previous quarters.” However, she acknowledged that the slow adoption of EVs in specific regions, combined with a challenging market environment, led to fewer deliveries than anticipated.
While the announcement did not provide a detailed breakdown of sales by markets, approximately 60 per cent of deliveries in the second and third quarters were directed to VinFast’s affiliate, Green SM (GSM). GSM is a Vietnam-based taxi operator and leasing provider, primarily owned by VinFast’s CEO, Pham Nhat Vuong. In October, a senior VinFast official informed Reuters that the company planned to expand sales to GSM in the following year.
VinFast, which is yet to turn a profit, entered the EV market during a period of pricing pressure in the automotive industry, driven by reductions from market leader Tesla and Chinese companies such as BYD.
