VinFast’s rapid expansion into Europe, seizing car market territory, plans to ship the first batch of electric vehicles in Q4
As the European Union considers imposing tariffs on mainland Chinese electric vehicles, Vietnamese electric car manufacturer VinFast is seizing the opportunity to capture the European market. They plan to ship their first batch of electric vehicles to Europe in the fourth quarter.
Reuters, citing insider sources, reports that VinFast plans to ship approximately 3,000 VF8 crossover SUVs in the fourth quarter of this year from their factory in northern Vietnam to countries in Europe such as France, Germany, and the Netherlands. This target is more than three times the 700 vehicles set in July last year.
If VinFast can indeed achieve its shipping goals, Europe will surpass the United States this year to become VinFast’s largest overseas market. VinFast had already shipped about 2,100 vehicles to the United States earlier this year.
VinFast CEO, Ms. Le Thi Thu Thuy, stated that in addition to the VF8 model, they plan to introduce other models such as VF6, VF7, and VF9 in Europe next year. She mentioned that VF8 has already received approval from regulatory authorities and complies with EU standards, making it eligible for sale within the EU.
Europe stands as a significant market for mainland Chinese car manufacturers. According to data from consulting firm Inovev, mainland China shipped nearly 70,000 electric cars to Europe from January to July this year, marking a year-on-year increase of nearly double.
In the event that the EU imposes punitive tariffs on mainland Chinese-made electric cars, it could potentially benefit VinFast, as their product prices would become more competitive. The starting price for VF8 in France is 50,990 euros (approximately 54,218 USD), while mainland Chinese-made Model Y, which may face additional tariffs, currently starts at 46,000 euros in France.
VinFast’s expansion into Europe is a part of its global expansion plan, which includes establishing new factories in the United States and Indonesia, and targeting markets such as India, the Middle East, Africa, and Latin America.
On the 21st, VinFast also released its second-quarter financial report, showing a remarkable 131% increase in revenue to 7.95 trillion Vietnamese dong (approximately 327 million USD). The net loss reduced from 13.65 trillion Vietnamese dong a year ago to 12.54 trillion Vietnamese dong, attributed to increased shipment volumes and reduced research and development costs. This report marks VinFast’s first financial disclosure since its listing on the Nasdaq stock exchange in August of last year.
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