Vietnamese automaker VinFast said the opening of its electric car plant in the US state of North Carolina will be delayed by three years, to 2028 from 2025 as originally planned, Bloomberg reported.
In a statement, VinFast said the decision would allow it to “more effectively” manage short-term expenditures and focus its resources on short-term growth targets. minimise risk more effectively”.
Bloomberg reports that the company’s decision will create new challenges for it as a global brand. In its annual outlook for electric vehicles, Bloomberg New Energy Finance (BloombergNEF) cut its pure electric vehicle sales forecast by 6.7 million units through 2026, and Ford, General Motors, Volkswagen Group, and even Tesla have all lowered their related forecasts in recent months.
Just a few weeks ago, VinFast’s founder and chief executive officer, Pham Nhat Vuong, said in an interview with Bloomberg that it was willing to bet all of its money on VinFast’s growth, and Vuong said at the time that it was evaluating the impact that rising factory costs, as well as delays in production, could have. However, Vuong said in the interview that VinFast is not cutting the initial annual capacity (150,000 units) or downsizing the North Carolina plant. However, in its latest statement, VinFast did not mention whether the plant’s size or capacity would change.
Currently, VinFast exports cars made in Vietnam to the United States. In the first quarter of this year, the US market accounted for more than 10 per cent of the company’s total deliveries.
In addition, VinFast has lowered its full-year sales target to 80,000 units from the previous 100,000 units.In a statement, VinFast Chairman Le Thi Thu Thuy said, “We have carefully considered the recent unfavourable factors, the volatile market conditions and potential challenges to give a more cautious expectation.”
Despite lowering its full-year sales target, VinFast said it expects stronger volume growth in the second half of 2024 as it expands its global distribution network in Asia, the U.S. and other existing markets.Vuong also said in the interview that VinFast is targeting a 30- to 40-fold increase in U.S. sales this year, compared with 2023, when the company had revenue of just $6.4 million.
In the second quarter of this year, VinFast delivered 12,058 electric vehicles, up 24 per cent from the previous quarter and 26 per cent from the same period last year. In the first half of the year, the company delivered 21,747 vehicles, up 92 per cent from the same period last year.