As the European Union mulls slapping tariffs on its Chinese rivals, VinFast, a Vietnamese manufacturer of electric vehicles, intends to ship its first EVs to Europe this year after getting regulatory authorization, its chief executive told Reuters on Thursday.
According to the idea, some 3,000 of its VF8 crossovers would be shipped from VinFast’s facility in northern Vietnam to France, Germany, and the Netherlands in the fourth quarter of this year, a source familiar with the plan told Reuters. Since these specifics had not yet been made public, the source declined to give her name.
The Nasdaq-listed business intends to enter Europe, which would be a four-fold increase from its previously missed goal of delivering 700 cars by last July. This move comes as the EU investigation into Chinese EV manufacturers creates a potential market gap.
If realised, Europe will surpass Asia as VinFast’s largest international market this year. Earlier this year, the business shipped around 2,100 EVs to the US.
Le Thi Thu Thuy, CEO of VinFast, stated that the company would introduce its other models, the VF6, VF7, and VF9, to the European market the following year. “We expect to deliver the first VF8 models to French, German, and Dutch customers in the fourth quarter of this year,” she added.
Thuy did not specify the quantity of VF8 sport utility vehicles (SUVs), but a source with knowledge of the situation claimed that it would be close to 3,000 vehicles, some of which would be for Israel.
According to Thuy, the VF8 SUV has already received approval from a European regulator as meeting EU criteria and may therefore be sold inside the 27-nation bloc.
She said that the business is also finishing up the requirements to receive the voluntary Euro NCAP safety rating.
According to consultant Inovev, one of the main markets for Chinese automakers is Europe. In the first seven months of this year, they exported roughly 70,000 EVs, more than triple the same period last year.
If the EU investigation finds that harsh duties on EVs built in China are necessary, VinFast might discover that its vehicles are more reasonably priced.
In France, the VF8 model starts at 50,990 euros ($54,217.67). The starting price of the Tesla (TSLA.O) Y model, which is built in China and is also subject to EU duties, is 46,000 euros.
The expansion of VinFast into Europe is a part of a global strategy that also includes the construction of new factories in the United States and Indonesia, as well as the targeting of markets in Latin America, the Middle East, Africa, and India.
The firm increased automobile deliveries in the second quarter just before making its Nasdaq debut in August. By the end of June, it had made a total of 11,315 EVs available to customers, primarily for the domestic market thanks to a plan to convert its vehicles into green taxis in Vietnam’s major cities.
VinFast reported a net loss of $598 million and a 49% decline in revenue for the first quarter compared to the same period last year. It anticipates making the announcement later on Thursday.
