Vinfast Reduces 2024 Delivery Target to 80,000 Vehicles Amidst Challenges

Vinfast, a Vietnamese company, has revised its 2024 delivery forecast for its electric vehicles down to 80,000 units, from the previous estimate of 100,000. The company operates in various sectors including residential real estate, healthcare, and education, and also offers automotive and mobile phone manufacturing, as well as technology research and development.

VinFast, a prominent Vietnamese conglomerate, has recently adjusted its 2024 delivery forecast for electric vehicles (EVs) downwards from 100,000 units to 80,000 units [1]. This revision comes amidst economic uncertainties and intense price competition in the global automotive market [1].

The company, which operates in diverse sectors including residential real estate, healthcare, education, automotive manufacturing, mobile phone manufacturing, and technology research, has experienced significant growth in recent years [1]. In the first quarter of 2024, VinFast reported a threefold increase in revenue year-on-year, reaching $302.6 million, despite a net loss of 12.3% less than the previous quarter [1].

VinFast's EV business, which began in 2017 and became fully focused on EVs in 2022, has gained traction in the United States [1]. The company delivered nearly 9,700 EVs in the first three months of 2024 in California alone and signed distribution contracts with 10 new dealers, bringing the total number of its partners to 16 [1].

The revised delivery forecast is likely a result of the challenging economic and geopolitical environment, which has impacted the sales and pricing strategies of automotive companies worldwide [1]. However, VinFast remains optimistic about its future growth prospects and plans to add more models in North America this year [1].

The adjustment in VinFast's delivery forecast underscores the volatile nature of the global EV market and the challenges faced by companies in navigating economic uncertainties and price competition [2]. Despite these challenges, VinFast's resilience and adaptability demonstrate its potential to continue growing and contributing to the EV industry.

References:
[1] Reuters. VinFast posts higher Q1 revenue, vehicle deliveries increase, but net loss rises. April 17, 2024. https://www.reuters.com/business/autos-transportation/vietnams-vinfast-posts-higher-q1-revenue-vehicle-deliveries-increase-2024-04-17/
[2] Statista. Global electric vehicle sales by region 2020-2025. https://www.statista.com/statistics/123984/global-electric-vehicle-sales-by-region/