Vietnamese electric car maker VinFast plans to build a production plant in India, as the EV startup revealed an ambitious expansion drive that includes ramping up deliveries and partnerships with US dealers.
The company saw third-quarter revenues more than double this year. In a filing to US securities regulators, it said it made $343 million in revenues for the three months ending September 30, up 159% on the same period last year.
Its net loss widened 33.7% to $623 million, however, as it continued to rack up expenses.
VinFast, which was formed in 2017 and began making electric vehicles (EV) in 2021, said it would set up an assembly plant in India, the world’s No3 car producing nation, to take advantage of the South Asian government’s incentives for EVs.
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The company said it aimed to open the plant in 2026. Just weeks ago, VinFast announced a similar plan for Indonesia and started a recruitment campaign for India on LinkedIn.
VinFast has entered the global EV market at a time when EV prices are under pressure, led by cuts at market leader Tesla and a range of Chinese companies amid a weakening global economy.
VinFast, backed by Vingroup, Vietnam’s largest conglomerate, has shipped nearly 3,000 of its VF8 model to North America and plans to ship another 3,000 to Europe by the end of this year, a person familiar with the matter told Reuters last month.
The company sold nearly 7,700 vehicles in the third quarter, up 185% from the same period last year, the filing showed. VinFast is aiming to sell 40,000-50,000 vehicles this year.
VinFast’s shares closed at $8.05 each on Wednesday, a fresh low after a stellar debut on August 15 following the merger with a blank-check company. The stock hit the peak of $82.35 in late August.
The company expects to receive around $1.2 billion in grants from its parent company, its founder Pham Nhat Vuong – Vietnam’s richest man, and two key shareholders in the next six months, according to the filing.
- Reuters with additional editing by Sean O’Meara
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