VinFast Delays Thailand Launch After Securing 15 Dealers Amid EV Market Slump

VinFast Auto Ltd., a Vietnamese electric vehicle brand, has put on hold the opening of its dealership network in Thailand, citing a notable decline in sales of EV passenger cars in the second-largest economy in Southeast Asia.

According to an email statement provided to Bloomberg, the business said that it will need to "carefully evaluate" the timing of its EV sales in Thailand. At first, VinFast had planned to open up 22 dealerships in the greater Bangkok area and has already signed letters of intent with 15 dealerships in Thailand.

Additionally, no updated market entry schedule has been given yet. Vinfast however stated that its agreement with these dealers will still stand as it considers Thailand's market significance.

This delay is also in line with a larger pattern in the global EV space which has been cooling off recently as large brands such as Ford Motor Co., General Motors Co., Volkswagen AG, and Tesla Inc had lowered their EV goals, indicating a more cautious market approach.

VinFast just like the others has also revised its full-year sales target to 80,000 units, down from the previous goal of 100,000 and pushed back the opening of its North Carolina factory by three years, to 2028. The choice according to Vinfast was crucial as the company shifts its focus to short-term growth goals while effectively managing short-term expenses.

In its statement to Bloomberg, Vinfast also added, "We have postponed the launch of our dealerships in Thailand to ensure that our infrastructure and operations meet VinFast's global standards."

VinFast does, however, reiterate its commitment to its larger expansion goals throughout Asia. 

Although the brand has postponed the opening of its Thailand dealership, its plans for other regions remain unchanged. It is still for now committed to enter into at least 50 countries by 2024 end, one of which is Malaysia. This is evident as we had seen on multiple time VinFast models with local registration plate being tested on our roads.

Image Source: Suhazli Rahim (MYEVOC Facebook)

Additionally, it has also started building a new assembly plant in Indonesia as part of this expansion plan, and it intends to open its manufacturing plant in India in the first half of 2025.

In a June interview with Bloomberg TV, Pham Nhat Vuong, the billionaire founder and CEO of VinFast, underlined his dedication to the company's future by saying he is willing to stake his entire wealth on VinFast's success.

Source: BangkokPost