VinFast delivered an impressive performance in the second quarter of 2024, with a 24% increase in vehicle deliveries compared to the first quarter and a 26% year-over-year growth.
Despite these strong results, global economic uncertainties and challenges call for a more cautious strategy in the remaining months of 2024. As a result, the company has adjusted its delivery target to approximately 80,000 vehicles for the full year, representing a 2.3-fold increase compared to 2023 (34,855 vehicles).
This target adjustment ensures VinFast’s sustainable growth amidst economic fluctuations. The company will focus on implementing a more cautious expansion plan to capitalize on opportunities in key potential markets, optimize cost and resource management, and enhance operational efficiency.
VinFast recognizes the rapid transition from gasoline to electric vehicles in Vietnam and aims to leverage the domestic market’s growth momentum. The company boasts a strong foundation for growth in Vietnam, including a comprehensive charging network, diverse product portfolio, flexible battery leasing policies, and excellent after-sales services.
As part of its cautious expansion plan, VinFast has decided to adjust the timeline for the North Carolina factory, with production now expected to commence in 2028. This decision will allow the company to optimize capital allocation and efficiently manage short-term costs. Consequently, VinFast will concentrate its resources on seizing immediate growth opportunities and consolidating its existing operations.
Ms. Lê Thị Thu Thủy, Chairwoman of VinFast, shared: “We have adopted a more cautious approach, carefully adjusted to mitigate short-term risks. This takes into account the actual market fluctuations and potential challenges. With our long-term strategic foundation and proven execution capabilities, we are confident in meeting the growing demands of the dynamic global electric vehicle market.”
These adjustments do not alter VinFast’s fundamental growth strategy and operational goals. The company’s sales are expected to be primarily recorded in the second half of the year, driven by a diverse product range with competitive pricing targeting a broader customer base, a rapidly expanding global distribution network in new markets in Asia, and the transition to an agency model in existing markets.
In the first half of the year, VinFast officially started taking reservations for the mini-SUV VF 3 in the domestic market and achieved record reservation numbers. The company also inaugurated its dealer store and launched the VF e34 and VF 5 models in Indonesia shortly after entering the market.
Concurrently, VinFast debuted its brand in Thailand and the Philippines, started vehicle deliveries in Europe after developing a comprehensive customer care network, established a presence in the Middle East, commenced construction of a factory in India, and expanded its global sales network.
VinFast will announce its Q2 2024 financial report on August 15, 2024.
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VinFast Vietnam achieved robust growth in Q2 despite a subdued market, marking the initial successes of its efforts to accelerate the shift from gasoline to electric vehicles. The impressive domestic sales performance contributed to VinFast’s 92% year-over-year growth compared to the same period in 2023. Notably, in Q2/2024, while the Vietnamese automobile market experienced a slowdown in overall growth and many internal combustion engine brands faced declining sales, VinFast’s electric vehicle line-up across various segments witnessed exceptional growth compared to Q1/2024. The VF 5 model led the sales figures among all VinFast vehicles and topped the segment for A-class vehicles in the market. The increasing preference among domestic consumers validates the effectiveness of VinFast’s product offerings, unique sales policies, and after-sales services implemented during this period. It also sets the foundation for the company’s expected breakthrough in sales performance in the latter half of 2024, especially with the upcoming deliveries of the highly anticipated mini-SUV VF 3. |
