VinFast VF8 electric car on display in the salon.

Yu Zhuidun | China News Service | Getty Images

For Vietnamese electric car maker VinFast, entering the US market amid stiff competition and declining demand has been a challenge.

VinFast has reduced the monthly rental price for its first US buyers to US$399 $599 per month. US rivals such as Tesla have cut prices to attract more customers and boost sales It’s clear forecast lower-than-expected production in 2023 after falling orders.

But VinFast’s CEO remains positive about long-term demand for electric vehicles.

“I think everyone agrees that the whole industry, or the whole world, is moving from internal combustion engines to electric vehicles,” CEO Le Thi Thu Thuy said on CNBC’s “Squawk Box Asia” on Tuesday.

“And if you take that point of view, and if you look at the legislation in different countries and imagine how many electric vehicles should be on the road in the next few years, in the next decade, there’s a lot of room for a lot of players in the market,” Le said.

She added that VinFast is entering the market “with distinct approaches,” such as offering premium quality and mass-market affordability without compromising cybersecurity and functional security.

“We still have a lot to prove. We have a lot ahead of us,” Le said.

Software problems delayed the delivery of the first batch of VinFast vehicles to American buyers from December 2022 to March 2023. But on March 1, only 45 SUVs had arrived out of 999 electric vehicles that were supposed to be delivered.

VinFast vehicles are also currently ineligible for the $7,500 US tax credit because they are not manufactured in the US but in Vietnam, which will affect their US sales.

“Of course, in the long term, we’re also pushing for plants in North Carolina and making sure that our vehicles get tax breaks under the IRA in the future,” Le said.

Le previously told CNBC that the company is in the final stages of obtaining permits for its North Carolina plant and that the plant is on track to begin production in 2024.

Although the company filed for an initial public offering in December, it has yet to launch a road show.

“For us, it’s not about raising money, it’s about making the company more international and for other corporate purposes, and the market, as you know, has not been easy,” Le said.

Vietnam's VinFast EV brand is a new, unknown competitor to the US

Source by [author_name]

Previous articleMast, formerly DroneSeed, acquires Cal Forest Nurseries
Next articleSam Altman invested $180 million in a campaign trying to delay death