Vietnam EV maker VinFast launches promotional war to fend off Tesla price cuts

Vinfast is determined to challenge the supremacy Tesla enjoys around the world, but especially in the United States. As the Vietnam-based electric carmaker prepares to enter the U.S. market, it is considering a series of promotions to make its products more lucrative for potential buyers.

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Updated on:
January 19, 2023 at 11:08 am

FILE PHOTO: Workers at the opening ceremony of the Vinfast car factory in Haiphong, Vietnam in 2019. (Reuters)

Vinfast may only have started operations in 2019, but it has come a long way in the past three years. Even with Tesla’s clear dominance, eyes are now firmly on the U.S. market. But even as Tesla has announced price cuts on many of its models to boost sales, a poised Vinfast has come up with a strategy. “As a new brand entering the market, when other brands cut prices, we had to launch promotions to ensure VinFast’s competitiveness,” a company spokesman wrote in a statement, according to Reuters. “We’re looking at a number of promotions that will be announced soon.”

Also read: Vietnamese EV maker VinFast to start production in US in July 2024

It’s unclear if the aforementioned promotions also include price cuts. The two models that will make their US debut, the Vinfast VF8 and VF9, start at $59,000 and $83,000, respectively.

Meanwhile, Tesla has cut the price of its base Model Y to $52,990 from $65,990. The company has even announced similar price cuts in China, the world’s largest EV market.

It won’t be easy taking on Tesla, but Vinfast confidently says it has about 65,000 orders around the world. The company also highlighted that it expects to sell more than 750,000 vehicles per year from 2026 onwards. The first batch of about 1,000 electric vehicles from its headquarters has already started shipping to the United States. An electric vehicle factory in North Carolina is also under construction.

First published date: Jan 19, 2023, 11:08 AM CST

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