What you need to know:
- “While we were encouraged by our second-quarter delivery results, ongoing economic challenges and uncertainties in various macro-economies and the global EV sector require a more cautious outlook for the remainder of the year,” VinFast stated in a Saturday announcement.
- The EV manufacturer anticipates robust sales growth in the latter half of the year, buoyed by a wide array of products and expansions in pivotal regions, including new markets across Asia and existing territories.
VinFast, the Vietnamese electric vehicle (EV) manufacturer, has postponed the opening of its planned $4 billion factory in North Carolina to 2028. This decision comes as the company adjusts its delivery projections for 2023, reducing the forecast by 20,000 units due to uncertainties in the global EV market.
Founded by Vietnam’s wealthiest individual, Pham Nhat Vuong, in 2017, VinFast transitioned to producing fully electric vehicles in 2022. The company now aims to deliver 80,000 vehicles this year, down from the previously projected 100,000 units.
Vietnamese EV manufacturer VinFast reported a 24% increase in sales to approximately 12,000 vehicles in the second quarter compared to the previous three months. In the first half of 2024, the company sold a total of 21,747 units, marking a substantial 92% rise from the same period last year. However, this figure represents only about one-fourth of the new annual sales forecast.
“While we were encouraged by our second-quarter delivery results, ongoing economic challenges and uncertainties in various macro-economies and the global EV sector require a more cautious outlook for the remainder of the year,” VinFast stated in a Saturday announcement.
The EV manufacturer anticipates robust sales growth in the latter half of the year, buoyed by a wide array of products and expansions in pivotal regions, including new markets across Asia and existing territories.
VinFast also announced in its statement a decision to push back the opening of its planned North Carolina factory from 2025 to 2028. Earlier reports by Reuters in May had already hinted at the potential delay, as per sources familiar with the matter.
In 2022, VinFast unveiled plans to construct an EV and battery factory in the United States capable of producing 150,000 vehicles annually. The initiative aimed to capitalize on the Biden administration’s initiatives to approve subsidies for American-made EVs.
However, EV demand has waned due to elevated borrowing expenses, prompting consumers to opt for more affordable gasoline-electric hybrids. As a result, numerous automakers, including VinFast, are reevaluating their strategies for new factories and vehicle models.
“By making this decision, the company aims to streamline its capital allocation and enhance short-term expenditure management, directing resources towards bolstering near-term growth objectives and fortifying current operations,” VinFast stated.
“The adjustment does not alter VinFast’s core growth strategy or key operational goals.”
Despite substantial revenue growth, which nearly tripled year-over-year, VinFast reported a net loss of $618 million in the first quarter. However, revenue for the period declined by 31% compared to the previous three months.
VinFast is scheduled to unveil its second-quarter financial results on August 15.
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