VinFast Unveils Smaller, More Affordable Model than VF3: Stock Surges as $10 Billion Valuation Nears Top 5 Global EV Makers

VinFast Auto’s stock surged by nearly 8% to close at $4.26 per share on November 27, marking its second consecutive day of gains. With this rise, VinFast’s market capitalization reached an impressive $9.9 billion, propelling the company’s ranking among electric vehicle manufacturers to 6th place globally.

This positive momentum in VinFast’s stock price followed the reveal of their new compact car. During a recent interview, Ms. Duong Thi Thu Trang, VinFast’s Vice President of Global Sales, provided insights into the company’s strategy for developing the Green car line, specifically targeting the service segment.

“We will soon introduce the M-Green model, a slightly smaller vehicle than the VF 3, and it will be significantly more affordable,” said Ms. Trang. The “M” in M-Green stands for “mini,” indicating that this model is designed for service businesses, such as taxi and ride-sharing services.

In addition to the M-Green, VinFast is also positioning the Green line as a dedicated choice for transportation services, including future models like the LimoGreen—a 7-seat electric MPV catering to the high-end service market. While both the VF 3 and M-Green are small and accessible, they cater to different segments. The VF 3 is positioned as a stylish, fun, and versatile personal car, suitable as a second family car or a first vehicle for young adults. In contrast, the M-Green is optimized for service operations from the outset, promising higher economic efficiency.

Furthermore, VinFast reported improved financial results for Q3 2024. During this quarter, the company delivered a total of 21,912 electric vehicles, representing a 66% increase from Q2 and a significant 115% surge compared to the same period in 2023. Notably, electric car deliveries to consumers surged by 163% compared to Q2 2024, indicating strong market demand for VinFast’s electric vehicles.

VinFast’s Q3 2024 revenue reached VND 12,326 billion, a 49.3% increase compared to the same period in 2023. The company incurred a gross loss of VND 2,957 billion in Q3, a reduction of 45.6% from Q2 2024. Net loss for the quarter stood at VND 13,251 billion, a notable decrease of 29.4% from the previous quarter and a 14.8% drop year-over-year.

Additionally, VinFast announced plans to construct a new factory in Ha Tinh province to meet the growing demand for low-cost electric vehicles. The CKD factory is designed for a maximum capacity of 300,000 electric vehicles per year, with flexible adjustments based on market fluctuations. Construction is expected to commence in early December 2024, with operations beginning in 2025.

VinFast remains committed to its global expansion strategy. As of October 31, 2024, the company’s global retail network comprised 173 automobile showrooms and 160 electric motorcycle showrooms and service workshops, including both VinFast-owned and dealer-owned locations. The expansion into the dealer sales channel has yielded positive results, with VinFast achieving record sales in North America in September, driven by a growing dealer network and product enhancements. VinFast also started delivering the VF 9 model in the US and Canada in November.

In Indonesia, VinFast delivered the VF e34 and VF 5 with right-hand drive and is preparing to launch the Subang factory in 2025. As of October 31, 2024, the company had established 17 dealerships across 15 cities in the country. In the Philippines, VinFast introduced the VF 3, VF 5, and VF 7 models, with 8 dealerships in 6 cities as of the same date.

VinFast’s factory in India, with a capacity of 50,000 electric vehicles per year, is in the process of equipment installation and will commence operations in 2025. The company also officially launched its brand in the Middle East in October, opening its first dealership in the heart of Dubai, UAE.