VinFast is gearing up to launch a new electric vehicle, as shared by Ms. Duong Thi Thu Trang, Vice President of Global Sales. The new model, named the M-Green (with M standing for mini), is said to be more compact than the VF 3.
Currently, the VF 3 is VinFast’s smallest car offering, measuring 3,190 mm in length, 1,679 mm in width, and 1,622 mm in height, with a wheelbase of 2,075 mm and a ground clearance of 191 mm. The VF 3 is priced at VND 240 million for the battery leasing option and VND 322 million for the battery purchasing option.
According to VinFast’s sales leadership, the new mini model is designed to cater to a specific group of customers: those in the business of providing taxi and ride-hailing services. This information seems to align with a disclosure made by Vietnam’s National Office of Intellectual Property at the end of September regarding VinFast’s registration of design rights for a new electric car. The sketch of this model reveals a softer, more compact design compared to the VF 3, reminiscent of the Smart ForTwo cars found in Europe, positioning it in the mini car segment with two doors and likely, two seats.
A VinFast representative stated that the M-Green line will focus on optimizing input and operating costs, tailoring its design to meet the mobility needs of the service market. In addition to the M-Green, VinFast is also positioning the Green line as a specialized choice for transportation services, including the LimoGreen, a seven-seat electric MPV catering to the high-end service vehicle market.
Image of the mini electric car design VinFast applied for copyright protection earlier this year.
According to VinFast, the VF 3 is aimed at personal convenience, serving as a second family car or a first car for young individuals. In contrast, the soon-to-be-released M-Green is designed and developed for professional service use. Given its focus on taxi and ride-hailing services, this mini model will likely be equipped with basic features to keep costs low.
While VinFast has not disclosed the pricing or exact release date of the M-Green, industry experts speculate that, based on the VF 3, the small electric car is expected to be priced between VND 150 and 200 million.
It appears that after launching a range of electric vehicles across various segments, VinFast, the electric vehicle arm of billionaire Pham Nhat Vuong, is now focusing on the mini car segment. This segment holds potential for better sales performance and is relatively free from competitive pressures.
VinFast’s Stock Soars Following News of the New Mini Car
The VF 3 is priced at VND 240 million for battery leasing and VND 322 million for battery purchasing. Photo: VFS
On November 27, VinFast Auto’s stock (VFS) surged by nearly 8% to close at $4.26 per share in the US market. This marks the second consecutive trading session of gains for the stock.
With this latest price, VinFast’s market capitalization has reached $9.9 billion , climbing one spot in the ranking of electric vehicle makers by market cap and placing sixth globally in the industry.
In its Q3 2024 financial report, VinFast announced delivering a total of 21,912 electric vehicles, representing a 66% increase from the previous quarter and a 115% jump from the same period in 2023.
Notably, VinFast’s Q3 2024 revenue reached VND 12,326 billion, a 49.3% improvement year-over-year. While the company still recorded a gross loss of VND 2,957 billion, this figure decreased by 45.6% compared to the previous quarter. Moreover, the gross profit margin showed significant improvement, rising from -62.7% in the previous quarter to -24%. The net loss for Q3 2024 also narrowed to VND 13,251 billion, down 29.4% quarter-over-quarter and 14.8% year-over-year.
Additionally, VinFast announced plans to build a new factory to meet the growing demand for its low-cost segment vehicles. Specifically, the company intends to expand its production operations in Ha Tinh province to focus on manufacturing the popular electric car models VF 3 and VF 5. Furthermore, VinFast plans to implement a long-term leasing model to optimize initial investment cash flow.
The new factory is designed with a maximum capacity of 300,000 vehicles per year and is expected to break ground in December 2024, with operations commencing in 2025.
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