VinFast Auto (Nasdaq: VFS) has just announced the delivery of 21,747 electric cars in the first half of 2024, marking an impressive growth of 92% compared to the same period in 2023.
In the second quarter of 2024 alone, VinFast delivered 12,058 vehicles, a sharp increase of 24% compared to the first quarter and 26% compared to the same period last year.
These results demonstrate VinFast’s strong growth momentum. However, global economic uncertainties and challenges require a more cautious strategy in the remaining months of 2024. Therefore, the Company has adjusted its vehicle delivery target to approximately 80,000 vehicles in 2024, an increase of 2.3 times compared to 2023 (34,855 vehicles).
Vinfast VF 8
The target adjustment is aimed at ensuring sustainable development for VinFast in the context of economic fluctuations. The company will focus on implementing a more cautious expansion plan to take advantage of opportunities in some key potential markets, optimize cost and resource management, and improve operational and business efficiency.
VinFast has identified that the transition from gasoline to electric vehicles in Vietnam is taking place rapidly and therefore wants to continue to capitalize on the growth momentum of the domestic market. The company has a solid foundation to drive growth in Vietnam, including a comprehensive charging station network, a diverse product portfolio, flexible battery leasing policies and excellent after-sales service.
In addition, following its cautious expansion plan, VinFast has decided to adjust the operating timeline of its North Carolina factory, which is expected to go into production in 2028. This decision will allow the company to allocate capital optimally and manage short-term costs more effectively. As a result, VinFast will focus resources on capturing immediate growth targets and consolidating existing operations.
“We have adopted a more cautious, carefully calibrated approach to mitigate short-term risks. This adjustment takes into account real market fluctuations and potential challenges. With a well-thought-out long-term strategy and proven execution capabilities, we are confident in meeting the growing demand of the vibrant global electric vehicle market,” said Ms. Le Thi Thu Thuy, Chairwoman of VinFast.
These adjustments do not change VinFast’s fundamental growth strategy and operating targets. VinFast’s sales are expected to be mainly recorded in the second half of this year thanks to a diverse product range with competitive prices aimed at a wider customer base, a rapidly expanding global distribution network in new markets in Asia, and the transition to a dealer model in existing markets.
In the first half of this year, VinFast officially accepted deposits for the mini-SUV VF 3 and recorded a record number of deposits in the domestic market. The company also opened a dealership, selling two models VF e34 and VF 5 just a few months after launching in the Indonesian market.
At the same time, VinFast also launched its brand in Thailand and the Philippines, officially delivered cars in Europe after developing a widespread customer care network, establishing a presence in the Middle East, starting construction of a factory in India and expanding its global sales network.
VinFast will announce its financial report for the second quarter of 2024 on August 15, 2024.
VinFast Vietnam grew strongly despite a sluggish market in the second quarter, marking the initial success of its efforts to strongly promote the shift from gasoline to electric vehicles. Contributing to VinFast's 92% growth compared to the same period in 2023 was the impressive sales recorded in the domestic market.
In particular, in the second quarter of 2024, although the Vietnamese automobile market recorded a slowdown in overall growth rate, many internal combustion engine vehicle brands faced a decline in sales, VinFast with pure electric car lines across segments recorded outstanding growth compared to the first quarter of 2024, typically VF 5 leading the sales of car lines and also leading the segment of class A cars in the market.
The increasing popularity of domestic consumers proves the effectiveness of the product lines, sales policies and differentiated after-sales policies that VinFast has implemented in recent times, and is also the basis for VinFast's expectation of a strong sales breakthrough in the last 6 months of the year, especially when the mini-SUV VF 3 is about to be delivered to customers.
Vietnam.vn
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