VinFast Postpones US EV Plant Opening, Cuts 2024 Delivery Forecast Amid Market Downturn

VinFast has delayed the opening of its US electric car plant in North Carolina to 2028, previously scheduled for 2025, due to a slowdown in the global EV market. The Vietnamese EV maker also reduced its 2024 delivery forecast from 100,000 to 80,000 cars, citing economic headwinds and uncertainties. Despite a 24% increase in Q2 deliveries to 12,058 units, VinFast adjusted its sales outlook prudently for the remainder of the year. Despite challenges, VinFast remains optimistic about future sales growth driven by product diversification and market expansion.

VinFast, the Vietnamese electric vehicle (EV) maker, has announced a delay in the opening of its US electric car plant in North Carolina from 2025 to 2028 [1]. The company attributed this decision to a slowdown in the global EV market and economic headwinds. Moreover, VinFast reduced its 2024 delivery forecast from 100,000 to 80,000 cars.

Despite the challenges, VinFast remains optimistic about future sales growth. The company plans to diversify its product offerings and expand its market reach [1]. In the second quarter of 2023, VinFast delivered 12,058 units, marking a 24% increase compared to the previous quarter [1].

VinFast's struggles to establish a foothold in the US market have been ongoing. The company sold fewer than 1,000 cars in North America last year [1]. Moreover, VinFast has been sued in the US for not paying rent on a showroom and faces two separate probes over safety issues [1].

The US EV market has become increasingly competitive. Tesla, the market leader, dominates the space with a market share of around 70% [2]. General Motors and Ford, two other major US automakers, have also announced plans to increase their production of EVs [2].

VinFast's decision to delay the opening of its US plant and adjust its delivery forecast reflects the challenges facing the global EV market. However, the company's optimism about future sales growth is a testament to its resilience and commitment to the EV market.

References:
[1] Reuters. VinFast considers delaying $4 billion US plant in North Carolina: source. May 29, 2023. https://www.reuters.com/business/autos-transportation/vietnamese-ev-maker-vinfast-considers-delaying-4-bln-us-plant-source-says-2024-05-29/
[2] Statista. US Electric Vehicle Market Size and Forecast. Accessed on June 11, 2023. https://www.statista.com/topics/1284/electric-vehicles-in-the-us/