Reuters: VinFast has the “weapon” to fight Tesla in the US

As the car manufacturing company of Vietnam’s largest private conglomerate, VinFast is making a big bet on the US market. The company expects electric SUVs and battery rental models to attract consumers with local manufacturers like Tesla and General Motors, Reuters wrote.

Recently appearing in the auto market and the No. 5 umbrella brand in Vietnam, VinFast has no shortage of ambition, with the goal of listing in the US and valuing up to 60 billion USD, Reuters sources said. .

The VinFast electric scooter will launch in North America and Europe in 2022. ” We will be coming to the US, Canada and Europe at the same time. In Europe, we will enter the German, French and Dutch markets, ” she said. Nguyen Thi Van Anh – CEO of VinFast USA said.

Workers working in factories of VinFast in Hai Phong.

Founded in 2017 with a team run by a handful of former General Motors executives, the company aims to be competitive on size and price. VinFast launched an electric car model that Ms. Van Anh described as “more luxurious” than the products being offered for sale. VinFast cars also come with a battery rental program, meaning the cost of the battery will not be included in the final price of the product. The battery is one of the most expensive components of an electric vehicle.

” We will provide a better product. We are launching an SUV. We bring you a more spacious car ,” said Van Anh, who will move from Hanoi to Los Angeles to operate. VinFast activities in the US next month.

According to a presentation the company prepares for potential investors, VinFast’s cars will be cheaper than other electric models. A Tesla SUV is priced at $ 50,000 while VinFast has not revealed the price of its car. Two of Tesla’s three electric cars will be for the US market, where the company has an annual sales target of 45,000.

Before VinFast, there were Asian carmakers who entered the US market. Toyota in the 1970s and Hyundai in the 1980s overcame initial skepticism and stood here.

VinFast – the company that achieved sales of about 30,000 vehicles last year in Vietnam, faces an uphill battle, according to Reuters. ” Their biggest challenge is to convince consumers that they have a solid product and attractive value ,” said Bill Russo, head of Shanghai-based consulting firm Automobility Ltd, former director. of Chrysler said.

” Even if the product has the right look and the right features, it just keeps you in the game. Winning requires a technology or business model that outperforms the competition .”

VinFast is betting on a battery lease plan – where customers will pay a monthly amount close to the average amount for the cost of refueling. Ms. Van Anh said that when the battery is reduced to 70%, VinFast will replace it. They use batteries of Samsung SDI.

A similar plan has been launched in China by Tencent-backed Nio. Nio sells an ES6 SUV from $ 55,272. According to Michael Dunne, CEO of auto consulting firm ZoZo Go, no electric car maker can compete with Tesla in the near future, demonstrating the overall strength of the American electric car maker.

” But the good news is that companies like VinFast don’t need to beat Tesla to win ,” Dunne said. Switch to electric vehicles.

VinFast has a manufacturing factory in Vietnam with a capacity of 250,000 vehicles / year. It plans to sell cars online in the US, eliminating the need for expensive dealer networks. So far, the company has 15,000 pre-orders for the electric car model VF e34 in Vietnam.

The company hired Jeremy Snyder, who worked for 10 years at Tesla, as US growth director. Snyder told Reuters he was the first VinFast employee in the US. The company currently has about 100 people working here, including full-time employees and consultants. “It is interesting to bring Vietnam and the US closer through VinFast,” he said.

Reference source: Reuters