VinFast, the Vietnamese manufacturer, presented its business figures for 2023, revealing that it delivered 34,855 electric vehicles last year and posted a gross loss of just over half a billion US dollars. The company aims to sell 100,000 cars in 2024.
VinFast fell short of its 2023 expectations, having previously stated its intention to deliver between 40,000 and 50,000 vehicles. The manufacturer delivered 34,855 units, with a five-digit number delivered in the second half of the year for the first time. After handing over 10,027 EVs to customers in Q3, this number rose to 13,513 in Q4. VinFast opened the order books for the VF 6 in its home market in October, with the VF 7 and VF 3 models set to launch in 2024. The company has set a delivery target of 100,000 vehicles for the current year.
See also: VinFast Auto to Commence Construction of First EV Manufacturing Plant in India
VinFast reported a turnover of around 1.2 billion US dollars in 2023, with a gross loss of 551.6 million US dollars, resulting in a gross margin of -46 per cent.
To improve its 2024 business figures, VinFast is implementing cost-cutting programs, aiming to reduce material costs by 40% within two years of each model launch. This includes technical measures such as component redesign and platform optimization, as well as procurement and purchasing initiatives, including in-sourcing and supplier changes.
VinFast also plans to expand into new markets, particularly in “untapped, volume-driven markets closer to home like Indonesia and India,” and expand its distribution channels. The company aims to open around 400 sales outlets worldwide by the end of 2024, leveraging the local network and expertise of 3rd party dealerships and distributors.
See also: VinFast Announces Dealership Partnerships for Indonesian Market Entry
VinFast changed its sales strategy a few months ago, switching from a direct sales model to a capital-light hybrid model with a strong focus on leveraging existing distribution infrastructure by building a dealership network in the US and globally.
The company has high hopes for its battery leasing approach, which aims to reduce the purchase price and boost sales in new markets, potentially reducing monthly operating costs to the level of many combustion vehicles currently on the market.
VinFast confirmed that it will begin building its electric car factory in India on 25 February, with the plant in the southern Indian state of Tamil Nadu designed for an annual production of 150,000 vehicles. The company has also signed a Memorandum of Understanding with three Indonesian business customers to supply 600 electric cars for their company fleets.
See also: VinFast Unveils Mid-Sized Electric Pickup, VF Wild, Targeting the U.S. Market
VinFast made a personnel change at the turn of the year, appointing its founder and largest financial backer, Pham Nhat Vuong, as the new CEO. Vuong replaced Le Thi Thu Thuy, who had held the position since 2021. Vuong now oversees VinFast’s global business, including production, sales, and marketing. He is also the founder of the parent company Vingroup, Vietnam’s largest business conglomerate.
VinFast was founded in 2017 and initially produced combustion cars but began building electric vehicles in 2021. The company entered the North American market and made its debut on the US stock exchange in mid-August 2023 via a SPAC deal. Valued at 85 billion dollars at the IPO, VinFast had a market capitalization of just 16.4 billion dollars at the beginning of January.
