CES 2024: VinFast leveraging $20K EVs to penetrate US market

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January 10, 2024 at 1:43 PM

Debuting on the Nasdaq (^IXIC) in August 2023 via a SPAC deal, Vietnamese EV startup VinFast Autos (VFS) has set ambitious benchmark goals for its electric vehicle production and affordability for American consumers. VinFast unveiled its Wild electric pickup truck at the 2024 Consumer Electronics Show (CES), while also showcasing its all-electric VF3 SUV (referred to as a "mini-SUV").

VinFast Board of Directors Chairwoman Madame Thuy sits down with Yahoo Finance's Akiko Fujita to discuss the automaker's entry point into the US auto market despite waning EV adoption rates, affordability being a major hindrance for American car buyers.

"From the very beginning, we say that our mission is to make EVs accessible to everyone. You see all the models that we have... in our lineup of vehicles, anything from... the affordable EVs under $20,000 to a very luxurious VF9 that can fit the whole family," Thuy states.

Click here to view more of Yahoo Finance's coverage of CES 2024 this week, or you can watch this full episode of Yahoo Finance Live here.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

AKIKO FUJITA: You made a big splash with your public listing last year. But let's talk about the EV environment right now in the US. It comes at a time where we've started to see sales slow. Drivers are increasingly hesitant about the infrastructure, the range, and the cost. When you think about where things are in this market, what's a realistic expectation the company has in in the US for 2024?

THUY LE: I think the EV adoption rate has decreased, but the adoption is still there. I mean, obviously it cannot continue going at a very high level. But you continue seeing the increase in EV adoptions. But now, after you scratch the surface and all the met the need of the people that have multiple cars and just can buy another car for a good reason, now you really have to sell to them-- to the mass market. Then you just have to make sure that the vehicles are affordable and can also meet the daily needs of the consumer.

So that's when we come into-- I mean, from very beginning, we say that our mission is to make EV is accessible to everyone. You see all the models that we have around here and in our lineup of vehicles, anything from like the affordable EVs under $20,000 to a very luxurious VF9 that can fit the whole family. So we want to have a little bit for everybody.

So we feel like when customers are becoming more choosy and make a decision of buying an EV, having all vehicles in all different segments will help the customer to choose the vehicles.

AKIKO FUJITA: The VF3 that was unveiled here that is going to be on the lower end of your car range. Roughly what, $20,000 or so?

THUY LE: Less than $20,000, yeah.

AKIKO FUJITA: Is that where you're looking to compete in the US market? Instead of the 40,000, roughly 50,000 that you have on the current market is this where you see the real opportunity?

THUY LE: It's an interesting twist. I mean, we started out because all the market research say that the US consumer like really big cars. So that's how we started with like VF8 and VF9 in the US, especially the VF9. And the book building the orders from the customer also saw significant number of Vietnam.

So in September, when I came here to meet with a group of dealers, when we decided to switch to dealership model, I met with different group of dealers in the US. And I brought this car with me, the VF3. That was very well received in Vietnam at that time as a test. And then we sold too-- I mean, we sold the VF-- we sold the whole lineup. We sold the VF3 together, VF6, VF7, VF8, VF9, all of them.

And then I asked the dealers, I was like, do you like this car? Do you think you can style this car? And hand on heart, everybody is like, definitely. It's going to be the biggest volume for us. So everybody-- all the dealers that we met with liked the VF3. And so we went back and we decided to just develop VF3 for US market as well.

AKIKO FUJITA: When is the launch date?

THUY LE: Next year-- early next year.

AKIKO FUJITA: Early next year?

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