Due to uncertainty in the global EV industry, VinFast, a Vietnamese manufacturer of electric vehicles (EVs), has decided to postpone the opening of its $4 billion facility in North Carolina until 2028 and has reduced its delivery projection for this year by 20,000 units.
VinFast, which was started in 2017 by Pham Nhat Vuong, the richest man in Vietnam, and which switched to producing only electric cars in 2022, said that it would only be delivering 80,000 vehicles this year instead of the 100,000 that had originally been scheduled.
Comparing the second quarter to the preceding three-month period, sales at the Vietnamese EV manufacturer increased 24% to almost 12,000 units. VinFast sold 21,747 units overall in the first half of 2024, a 92% increase over the same time the previous year, although only around one-fourth of the new yearly focus.
"While the second-quarter delivery results were encouraging, ongoing economic headwinds and uncertainties in different macro-economies and (the) global EV landscape necessitate a more prudent outlook for the rest of the year," VinFast said in a statement on Saturday.
The manufacturer of electric vehicles (EVs) continues to project robust sales growth in the second half of the year, propelled by a broadened product offering and regional development into new and current markets, particularly those in Asia.
VinFast announced in a statement that it will push back its existing 2025 opening date for its planned facility in North Carolina to 2028. May saw a potential delay reported by Reuters, which cited a source briefed on the situation.
VinFast had said in 2022 that it will construct an electric vehicle (EV) and battery plant in the US with a 150,000 car annual production capacity. The company did this in an attempt to capitalise on the Biden administration's efforts to approve subsidies for EVs manufactured in the US.
However, due to high financing costs and consumers' preference for less expensive gasoline-electric hybrids, demand for EVs has waned, prompting several manufacturers to reevaluate their plans for new plants and models.
"This decision will allow the company to optimize its capital allocation and manage its short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations," VinFast said.
"The adjustment doesn't change VinFast's fundamental growth strategy and key operating targets."
VinFast recorded a $618 million net loss in the first quarter and is still non-profit. While revenue decreased 31% from the prior three months, it nearly quadrupled from the same period last year.
On August 15, the business is scheduled to release its second-quarter earnings.
(Source:www.theprint.in)
VinFast, which was started in 2017 by Pham Nhat Vuong, the richest man in Vietnam, and which switched to producing only electric cars in 2022, said that it would only be delivering 80,000 vehicles this year instead of the 100,000 that had originally been scheduled.
Comparing the second quarter to the preceding three-month period, sales at the Vietnamese EV manufacturer increased 24% to almost 12,000 units. VinFast sold 21,747 units overall in the first half of 2024, a 92% increase over the same time the previous year, although only around one-fourth of the new yearly focus.
"While the second-quarter delivery results were encouraging, ongoing economic headwinds and uncertainties in different macro-economies and (the) global EV landscape necessitate a more prudent outlook for the rest of the year," VinFast said in a statement on Saturday.
The manufacturer of electric vehicles (EVs) continues to project robust sales growth in the second half of the year, propelled by a broadened product offering and regional development into new and current markets, particularly those in Asia.
VinFast announced in a statement that it will push back its existing 2025 opening date for its planned facility in North Carolina to 2028. May saw a potential delay reported by Reuters, which cited a source briefed on the situation.
VinFast had said in 2022 that it will construct an electric vehicle (EV) and battery plant in the US with a 150,000 car annual production capacity. The company did this in an attempt to capitalise on the Biden administration's efforts to approve subsidies for EVs manufactured in the US.
However, due to high financing costs and consumers' preference for less expensive gasoline-electric hybrids, demand for EVs has waned, prompting several manufacturers to reevaluate their plans for new plants and models.
"This decision will allow the company to optimize its capital allocation and manage its short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations," VinFast said.
"The adjustment doesn't change VinFast's fundamental growth strategy and key operating targets."
VinFast recorded a $618 million net loss in the first quarter and is still non-profit. While revenue decreased 31% from the prior three months, it nearly quadrupled from the same period last year.
On August 15, the business is scheduled to release its second-quarter earnings.
(Source:www.theprint.in)