VinFast Reports Strong Q2 2024, EV Deliveries Surge 44%

• VinFast delivered 13,172 EVs in Q2 2024, up 44% QoQ and 43% YoY, totaling 22,348 deliveries for the first half of 2024, a 101% increase from last year.
• VinFast expanded its presence in the U.S. and Southeast Asia, operating in eight U.S. states and establishing 15 showrooms in Indonesia.
• VinFast’s Q2 2024 revenue rose 33% QoQ to $357 million, despite a $224 million gross loss.

VinFast has emerged as a promising player in the global electric vehicle market, with its unique position as Vietnam’s sole pure-play EV manufacturer. Despite economic challenges and tough competition, the company reported impressive growth in its unaudited Q2 2024 financial results, delivering 13,172 vehicles in the quarter—a 44% increase compared to the previous quarter and a 43% increase year-over-year.

VinFast Delivers 22,348 EVs in H1 2024

Strong demand in Vietnam fueled this growth, bringing VinFast’s total deliveries for the first half of 2024 to 22,348 vehicles, representing a staggering 101% increase compared to the same period last year.

The demand for electric cars in Vietnam is skyrocketing, with a 108% increase in B2C deliveries in Q2 compared to last year. This surge is mainly due to VinFast’s flexible battery subscription plans and growing dealership presence. The company reported $357 million in revenue for Q2, a 33% jump from the previous quarter. As we look ahead, Vietnam is expected to be a key market for boosting VinFast’s revenue through the rest of 2024.

Chairwoman Thuy Le highlighted the company’s dedication to its mission, saying, “We remain focused on our mission to contribute to a sustainable future for everyone. Our strategy is unchanged with regards to being a vertically-integrated green mobility solutions company providing high-quality and good-value electric vehicles.”

VinFast Leads at Home, Expands in North America and Southeast Asia

VinFast’s strong performance in its home market shows how well it’s planned its strategy and built a solid operation. The launch of the VF 5 has made it a leader locally, and the upcoming VF 3 mini electric SUV, expected to further solidify its position as it enters the market in Q3 2024. With a wide charging network and a flexible battery subscription plan, VinFast has made it easier for people to switch to electric vehicles, strengthening its role as a market leader.

But Vietnam is just one chapter in the story. VinFast has made moves in North America, establishing a solid presence in the U.S. with strategic dealership partnerships, a Dealer Advisory Council, and offering test drives at the Electrify Expo EV festival. The company operates in eight states, including California, Florida, and New York. In Canada, it’s been gaining momentum, achieving its highest delivery numbers in July and August of 2024.

Southeast Asia also plays a critical role in VinFast’s expansion strategy. Since entering the Indonesian market less than six months ago, VinFast has established 15 showrooms and began delivering the right-hand drive VF e34. The company’s innovative battery subscription program, which accounts for nearly 100% of its sales and orders in Indonesia, has been a key driver of this success. The positive response from Indonesian and Filipino consumers highlights the potential for rapid growth in these markets.

Financial Performance and Strategic Outlook

Despite the impressive growth in deliveries and revenue, VinFast reported a gross loss of $224 million for Q2, with a gross margin of (62.7%). This was largely due to an impairment charge on Net Residual Value (NRV) of $104 million. However, the company remains optimistic about its financial trajectory, particularly with the expected delivery of approximately 80,000 units by the end of 2024. This target is ambitious, but given the current growth momentum, it seems within reach.

Chief Financial Officer Lan Anh Nguyen acknowledged the challenges while reinforcing the company’s growth potential: “Q2 of 2024 aligned with our forecasts, driven in large part by the increasing demand for VinFast’s EVs in Vietnam. This growth in our home market has been crucial in advancing our mission to promote EV adoption and green mobility. The momentum we’ve built in Vietnam has laid a solid foundation for our strong position in this key market to continue thriving.”

VinFast Boosts Global EV Adoption with Competitive Lease Deals

The global electric vehicle market is growing quickly, with over 14 million EVs sold in 2023 alone, according to the International Energy Agency (IEA). This growth isn’t just happening in traditional markets like North America and Europe, but countries like Vietnam and Indonesia are also seeing a rise in EV adoption. Companies like VinFast are playing a big role in this shift, pushing EV innovation and adoption forward in areas that have typically been slower to develop EV infrastructure and policies.

However, the road ahead is not without challenges. The U.S. EV market, for instance, has faced fluctuating consumer interest due to high prices and limited charging infrastructure, as highlighted in the Q2 2024 EV Sales Report by Cox Automotive. To tackle these issues, VinFast is taking an aggressive approach in North America by building a strong dealership network and providing competitive leasing options.

VinFast’s lease pricing, which includes models like the VF 8 at $199/month for 36 months and the VF 9 at $529/month for 24 months, is designed to make its vehicles accessible to a wider audience. This pricing strategy is crucial for penetrating markets where consumers are particularly price-sensitive and looking for value in their EV purchases.

IMAGES: ELECTRIFY EXPO

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