VinFast, the Vietnamese electric vehicle (EV) manufacturer, has encountered a challenging initiation into the North American market, grappling with sluggish sales and persistent production quality concerns that have even led to compensations for EV owners experiencing breakdowns. As a response to these trials, the company is now contemplating a significant shift in its sales approach.
Presently, VinFast has been following the trajectory of other EV startups by adopting a direct-to-consumer sales model. However, recent statements from CEO Madam Thuy Le reveal that the company is contemplating a strategic alliance with established dealerships. This potential shift stems from the belief that partnering with established dealer networks could expedite the process of showcasing VinFast vehicles to a wider audience.
In an interview with Reuters, Madam Thuy Le remarked:
“While establishing our own stores has its merits, the time factor cannot be overlooked. Historically, our inclination has been towards collaborations that accelerate processes. We are presently formulating the specifics of this novel model and engaging in discussions with potential collaborators. Further particulars will be unveiled in due course.”
Presently, VinFast boasts a global presence with 122 showrooms operational across various regions. The automaker has refrained from divulging the exact number of potential dealership partners it is considering. Notably, another enterprise that adheres to a similar framework is Polestar. Their approach involves maintaining showrooms while permitting dealerships to levy solely the Manufacturer’s Suggested Retail Price (MSRP) along with destination fees for each vehicle.
The scope of VinFast’s contemplated dealership agreements remains ambiguous, leaving room for speculation regarding whether this approach will be confined solely to the United States or if it will encompass markets in Europe and Canada as well. The company’s deliberations reflect the intricate decisions EV manufacturers navigate in their pursuit of sustainable market penetration.
As VinFast endeavors to establish a more impactful presence in North America, this potential paradigm shift could potentially reshape the trajectory of their operations and interactions with a broader array of consumers. With the EV landscape continuously evolving, VinFast’s strategic evolution warrants vigilant observation as the company steers through these transformative times.
