VinFast has entered the competitive U.S. market by shipping its electric crossovers to customers. However, it faces strong competition from Tesla, which has recently reduced prices and created difficulties for established automakers like Ford and General Motors. Despite this challenge, VinFast has high expectations for sales this year, aiming to reach 45,000 to 50,000 units. The company is also open to expanding its product line to include electric pickups, mini cars, and other models, depending on market demand.
Supporting VinFast has come at a significant cost for its owner, Vuong. The parent company, Vingroup JSC, along with its affiliates and external lenders, has invested approximately $9.3 billion in the EV manufacturer since 2017. However, the first-quarter results for VinFast show promising improvement compared to the net loss of 9.7 trillion dong in the same period last year. Vuong has expressed confidence that VinFast could achieve profitability after 2025 if operations run smoothly, and the company aims to break even by the end of next year.
In terms of the construction of its North Carolina factory, VinFast seems to have deviated from its previous timeline. Earlier, they stated that production would not commence until 2025. However, the latest filing omits any specific time reference, indicating that pre-construction work began in the third quarter of the previous year. The factory is projected to have an initial capacity of 150,000 vehicles per year, with plans to eventually increase this to around 250,000 vehicles annually. VinFast has not disclosed the expected timeline for achieving these capacity levels.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.