EV maker VinFast posts 270% revenue growth in Q1

Vietnamese electric vehicle (EV) maker VinFast on Wednesday reported revenue growth of 269.7% year-on-year to $302.6 million in the first quarter of 2024.

This growth was driven by the expansion of VinFast’s dealership network and customer interest in new electric cars, the subsidiary of private conglomerate Vingroup said in its release of unaudited financial results for Q1.

VinFast, listed on the Nasdaq as VFS, said it delivered a total of 9,689 vehicles in Q1, marking an increase of 444% year-on-year.

However, it suffered a gross loss of $150.8 million, while its gross margin improved from negative (172.9%) in Q1/2023 to negative (49.8%) in Q1/2024.

In the period, VinFast continued to closely follow its global growth roadmap by launching its brand in Thailand and Indonesia, establishing a presence in the Middle East, beginning construction of its manufacturing facility in India, and ramping up its sales network globally.

While domestic sales still drove most of the revenue, VinFast recorded encouraging growth in the U.S. market, with several new dealers reporting sales figures, the release said.

In Q1/2024, VinFast secured partnerships with 10 new dealers, bringing its total U.S. network to 16 dealers across seven states, including North Carolina, New York, Texas, Florida, Kansas, Connecticut, and Kentucky. These new dealerships will begin operations in the second quarter.

Beyond current markets, VinFast is also ramping up its presence and sales efforts in markets across Southeast Asia. At the 2024 Bangkok International Motor Show, the company officially launched its brand in Thailand and signed letters of intent with 15 dealers, with a target of operating 22 stores in Bangkok.

In Indonesia, VinFast officially opened its first dealership and started sales of the VF e34, a C-segment electric SUV. Notably, the company has implemented a unique battery subscription policy within the market, specifically designed to incentivize Indonesian consumers to switch to EVs by offering lower initial and operating costs.

In March, VinFast officially started deliveries of its C-segment electric SUV VF 7 to customers in Vietnam.

The company also expanded its global footprint with first distribution agreements signed in Oman, Ghana, and Micronesia.

Despite marco-economic challenges facing the EV industry, VinFast said it has established clear plans and remains committed to a target of delivering 100,000 electric cars in 2024, with the majority of deliveries expected in the second half of the year.

This goal will be primarily driven by the company’s rapidly expanding distribution network, the introduction of new models targeting a broader customer base, and entry into new markets, the firm said.

Concerning the product lineup, VinFast plans to deliver the much awaited and affordable VF 3 model in Vietnam. The company will also launch the VF 9 and VF 7 in North America and plans to complete its full EV lineup for global markets.

Regarding charging infrastructure, Pham Nhat Vuong, founder and CEO of VinFast, announced the establishment of V-GREEN in March 2024, to develop a global network of charging stations specifically for VinFast vehicles. By reducing capital expenditures on infrastructure, VinFast can maintain its unwavering focus on driving business growth.