Vietnamese electric vehicle manufacturer VinFast has entered into a partnership with U.S. dealer Leith Automotive Group for the first time, the company's latest effort to boost sales in the U.S. market. In August this year, VinFast’s global CEO revealed that it was changing its distribution model, that is, Tesla’s direct-to-consumer sales method, to a “hybrid” model that includes dealers.
According to the joint statement, Leith will be responsible for all repairs, maintenance and parts for VinFast vehicles, in addition to operating VinFast sales points. VinFast was founded in 2017 and is backed by Vietnam's largest enterprise group, Vingroup. The company will begin delivering electric vehicles in California, USA, in March 2023, and was listed on Nasdaq in late August.
Last month, VinFast said it had received applications from 70 dealers across the United States. If the application is approved, VinFast will be able to distribute its electric vehicles through 125 sales points across the country. In addition, VinFast has invested $4 billion in a manufacturing plant in North Carolina, which is expected to begin production in 2026.
VinFast’s entry into the U.S. market comes at a time when U.S. electric vehicle pricing is under pressure, mainly due to a price war led by Tesla and some Chinese car companies. In the second and third quarters of this year, VinFast sold about 13,000 electric vehicles globally, more than half of which were sold to an affiliated company owned by its founder.
Recently, VinFast launched the VF3 electric minicar in Vietnam priced at US$20,000. It is reported that the company is considering exporting it to the United States to be sold alongside the VF8 and high-end VF9. The 2024 VF8 starts at about $47,000 and can go up to $53,000 depending on configuration and options. The Eco version has the longest range, with 264 miles per charge.
Currently, VinFast is working hard to expand its market share in North America and Europe, and said it expects global annual sales to reach 75,000 vehicles by 2026. It is estimated that the introduction of the low-priced VF3 subcompact car into the United States may increase VinFast's chances of winning.