VinES, the battery-maker subsidiary of Vietnamese private conglomerate Vingroup, has produced the first battery packs for electric vehicles (EVs) made by the group’s automotive subsidiary VinFast.
After a trial production period, the VinES plant in the central province of Ha Tinh began operations late August and has recently delivered battery packs for the VF6, a VinFast EV model.
Initially, the factory is only operating at 30% of its maximum capacity and producing batteries for the VF6, local media quoted Trinh Xuan Tu, a senior factory staff, as saying. Currently, the plant's daily output is 120 battery packs
The batteries are transported to the VinFast factory in the northern city of Hai Phong for further assembly, said Bryan Koo, director of the VinES factory. The annual capacity of the factory is 100,000 battery packs, which can meet growing demand for EVs in Vietnam and Southeast Asia, he told local media.
Vingroup kicked off construction of the VND3.78 trillion ($156 million) 12.6-hectare VinES battery factory in December 2021.
VinFast said it delivered 3,042 electric vehicles to the market in July. VF e34, a sports utility vehicle (SUV) crossover, topped the list with 1,181 units; followed by VF 5 Plus, a SUV, with 1,000; and the VF 8 and VF 9 SUVs with 443 and 418 units, respectively.
VinFast’s January-July sales of 14,680 units comprised 6,253 VF e34; 4,998 VF 8; 1,977 VF 5 Plus; and 1,452 VF 9.
VF 9 and VF 5 Plus are new products introduced to the market in March and April, respectively.
Vietnam’s EV market can see an annual sales growth of almost 26% to reach around 64,500 units in 2032, according to BMI, a Fitch Solutions company. Initially, the market would be impacted by low incomes and lackluster incentives, but it will grow strongly thereafter with local production of domestic and foreign brands like VinFast, Wuling HongGuang, Skoda and Hyundai. Other factors backing the EV market growth include development of the energy market, it adds.
The BMI report forecasts EV sales in Vietnam to double year-on-year to 17,964 units in 2023 - 16,886 battery electric vehicles (BEV) and 1,078 plug-in hybrid vehicles (PHEV). It attributes the strong growth in BEVs to VinFast production and sales.