VinFast plans to export 3,000 electric cars to Europe in the fourth quarter

Electric carmaker VinFast is planning to export its first electric cars to Europe this year, after receiving regulatory approval, VinFast global CEO Le Thi Thu Thuy said on September 21.

About 3,000 VF8 crossovers are scheduled to be delivered to France, Germany and the Netherlands in the fourth quarter of 2023 from VinFast's factory in Hai Phong, Reuters reported. That's four times higher than the company's expected target of delivering 700 luxury cars to Europe in July.

If all goes according to plan, Europe will become VinFast’s biggest overseas market this year. The company shipped about 2,100 electric cars to the US earlier this year.

According to Ms. Le Thi Thu Thuy, the company's other models VF6, VF7 and VF9 will also be launched in the European market in 2024.

VinFast CEO said the VF8 SUV has been certified by European regulators as compliant with EU standards and can be sold in 27 countries in the bloc. The company is also completing procedures to achieve Euro NCAP safety ratings, Ms. Thuy added.

World - VinFast plans to export 3,000 electric cars to Europe in the fourth quarter — A VF8 electric car is displayed at VinFast's showroom in Santa Monica, California, USA on September 13, 2022. Photo: CNN

VinFast's announcement comes as the EU opens an investigation into Chinese government subsidies for electric car manufacturers, as Chinese cars are being sold 20% cheaper than domestic brands in Europe.

Europe is one of the biggest markets for Chinese automakers, with imports of nearly 70,000 units in the first seven months of this year, nearly triple the same period last year, according to consultancy Inovev.

If the EU investigation leads to tariffs on Chinese electric vehicles, VinFast electric vehicles could compete better in this market.

The VF8 starts at €50,990 in France, while the Chinese-made Tesla Model Y (which is also at risk of being hit with EU tariffs) starts at €46,000.

World - VinFast plans to export 3,000 electric cars to Europe in the fourth quarter (Figure 2). — VinFast global CEO Le Thi Thu Thuy speaks at the groundbreaking ceremony of the company's factory in North Carolina, USA on July 28. Photo: Nikkei

In a recent filing with the US Securities and Exchange Commission (SEC), billionaire Pham Nhat Vuong's car company said it plans to establish its own branches in Vietnam, North America (US and Canada) and Europe (France, Germany, Netherlands) and 7 additional market clusters including Asia (India, Indonesia and Malaysia), the Middle East, the rest of Europe, Africa and Latin America.

VinFast will invest $200 million in the Indonesian factory, which will have a capacity of 30,000-50,000 electric vehicles per year once it is operational. The investment is part of the company’s long-term investment plan worth $1.2 billion in the Indonesian market.

“We plan to start delivering our electric vehicles in Indonesia in 2024 with the VFe34 and VF5 models, followed by the VF6 and VF7,” the company said in a statement.

“We have also identified Indonesia as an important potential market to establish electric vehicle and battery manufacturing facilities due to its relatively low costs and domestic availability of raw materials,” VinFast shared.

The factory in Indonesia will be VinFast's third, following the factory currently operating in Hai Phong and the factory that broke ground in North Carolina, USA in July, expected to go into production in 2025 .

Nguyen Tuyet (According to Reuters, Investment Monitor, Investopedia)

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