VinFast recently published its Q1 2024 business results. The company delivered a total of 9,689 electric cars, a 444% increase compared to the same period in 2023. Additionally, the company delivered 6,632 electric motorcycles, a 73% decrease.
VinFast’s total revenue reached VND 7.264 billion in Q1, a 269.7% increase over the same period in 2023. This growth is attributed to new campaigns deployed, such as the development of a dealership network and positive customer reception of new car models. However, gross loss was recorded at VND 3.619 billion. After deducting expenses, the company incurred a net loss of VND 14.841 billion in the first quarter.
In a recent interview with Reuters, VinFast Chairwoman Le Thi Thu Thuy stated that more than half of the company’s electric vehicles were sold to GSM – the private taxi company of VinFast founder Pham Nhat Vuong. Additionally, Vinhomes – the real estate company within the Vingroup ecosystem – contributed 4% to the electric car company’s sales, with an estimated 700 vehicles sold.
Speaking to Reuters, the VinFast Chairwoman also said: “We see a positive development in the U.S. market in the first quarter of 2024.” The businesswoman also shared that auto sales in the U.S. accounted for over 10% of the total vehicles delivered during the period.
VinFast stated that they are maintaining their target of delivering 100,000 electric vehicles in 2024 despite intense price competition and global economic uncertainty hindering automotive sales prospects. “VinFast considers the ongoing global economic and geopolitical uncertainties as short-term challenges,” Thuy affirmed.
The VinFast Chairwoman added that lower-priced products will be introduced in the coming quarters, targeting a broader customer base, combined with an expanding dealership network and market reach. This will enable the electric car company to accelerate its growth in the second half of the year.
Commenting on VinFast’s significant market capitalization decline since its listing, Le Thi Thu Thuy stated that the electric vehicle industry has faced headwinds since the beginning of the year, with VFS stock price only partially reflecting the industry story and could also be impacted by its relatively low free float. “We believe that in the long term, VinFast’s growth potential and inherent value will be fairly reflected in its stock price,” added Thuy.
Since its inception in 2017, VinFast has offered promotions on car purchases for customers purchasing homes from Vinhomes. In 2023, Vinhomes also launched a program to give away 1000 VinFast electric cars to customers who purchased apartments and villas in Vinhomes urban areas across the country.
