Phuong Nguyen
HANOI (Reuters) – Vietnamese electric vehicle (EV) maker VinFast will delay the start of operations at its planned $4 billion factory in North Carolina to 2028 and cut its delivery forecast by 20,000 vehicles this year due to uncertainty in the global EV market.
VinFast, founded in 2017 by Vietnam’s richest man Pham Nhat Vuong and which began making all-electric cars in 2022, said it would deliver 80,000 vehicles this year, down from an initial plan of 100,000.
The Vietnamese EV maker’s second-quarter sales rose 24% compared to the previous three months to about 12,000 units. VinFast has sold a total of 21,747 units in the first half of 2024, up 92% from the same period last year but still about a quarter of the new full-year forecast.
“While second-quarter delivery performance was strong, ongoing economic headwinds and uncertainties in the various macro-economic and global EV markets call for a more cautious outlook for the remainder of the year,” VinFast said in a statement on Saturday.
The EV maker expects strong sales growth in the second half of the year, driven by a diversified product lineup and expansion in key regions, including new and established markets in Asia.
VinFast said in a statement that it would delay the opening of its planned North Carolina factory from 2025 to 2028. Reuters reported the possible delay in May, citing people familiar with the matter.
VinFast had announced in 2022 that it would build an EV and battery factory in the United States with an annual production capacity of 150,000 units, seeking to take advantage of the Biden administration’s efforts to approve subsidies for American-made EVs.
But rising borrowing costs and buyers turning to cheaper gasoline-electric hybrids have sapped demand for EVs, forcing many automakers to rethink plans for new factories and new models.
“This decision will enable the company to optimise capital allocation, manage short-term expenditure more effectively and focus more resources on supporting near-term growth objectives and strengthening its existing business,” VinFast said.
“The adjustment will not change VinFast’s fundamental growth strategy and key business objectives.”
VinFast, which is not yet profitable, posted a net loss of $618 million in the first quarter after revenue nearly tripled year-on-year but was down 31 percent from the previous three months.
The company is scheduled to announce its second-quarter results on August 15.
(Reporting by Phuong Nguyen and David Holmes Editing by
