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VinFast failed to achieve 2023 sales target

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Throughout 2023, Vinfast has successfully sold nearly 35,000 units of electric vehicles (EV). A new record was also set in the fourth quarter (Q4) of 2023, where Vinfast managed to sell a total of 13,512 units.

However, despite the impressive figure of 34,855 units compared to previous achievements, the annual sales volume still falls short of the set target of 40,000 units.

The Vietnamese manufacturer claims that this figure is due to the slow acceptance rate of EVs in some regions, as well as intense competition.

A Reuters report mentioned that the majority of Vinfast’s sales come from the Vietnamese market, where 60 percent of distribution in the second and third quarters was contributed by the Green SM taxi operator and the vehicle leasing company owned by VinFast’s CEO.

According to Vinfast’s Deputy CEO of Sales and Marketing, Tran Mai Hoa, “We have seen a significant increase in vehicle distribution in the fourth quarter of 2023 compared to the previous quarter. However, the slow adoption rate of EVs in some regions, as well as intense competition, have led to a smaller distribution volume than we expected.”

VinFast is now preparing to establish battery production and assembly facilities in India, along with exploring new markets in the Middle East, Latin America, and Asia, including Indonesia.

EV

Vinfast invests RM9 billion to set up EV factory in India

EVEN in the face of challenges in the United States, Vietnamese EV manufacturer Vinfast continues to move forward by announcing plans to build a new factory in India.

The factory to be constructed in Thoothukudi, Tamil Nadu is expected to cost around $2 billion (RM9.29 billion), with $500 million earmarked for the first phase of the project.

VinFast North Carolina Factory Rendering

Construction of the Vinfast factory will commence this year, expected to operate with a workforce of about 3,000 to 3,500 people, and an annual production capacity of up to 150,000 units.

In addition to announcing the construction of the third factory, Vinfast will also establish a distribution network throughout India.

Speaking at the signing ceremony of the memorandum of understanding, Vinfast Global Deputy CEO Tran Mai Hoa stated that this latest move demonstrates Vinfast’s commitment to sustainable development and the vision of zero-emission transportation.

“We believe that by investing in Tamil Nadu, we will not only bring significant economic benefits to both sides, but also help accelerate the transition to green energy in India and the region.”

So far, Vinfast has already offered a range of electric-powered products in specific markets, such as VF3, VF5, VF6, VF7, VF8, and VF9.