According to reports, Vinfast, a Vietnamese electric vehicle manufacturer, has entered into a partnership with Leith Automotive Group, a U.S. distributor, for the first time, in the company's latest efforts to boost sales in the U.S. market.
In August, Vinfast's global CEO revealed that it was changing its distribution model, that is, Tesla's direct-to-consumer sales approach, to a "hybrid" model that included dealers.
According to the joint statement, Leith will be responsible for all repairs, maintenance and spare parts of Vinfast vehicles in addition to operating Vinfast points of sale. Vinfast was founded in 2017 and is backed by VinGroup, the largest conglomerate in Vietnam. The company began deliveries of electric vehicles in California, USA, in March 2023 and has been listed on the NASDAQ in late August.
Last month, Vinfast said it had received applications from 70 dealers across the U.S., and if approved, Vinfast would be able to distribute its electric vehicles through 125 locations across the country. In addition, Vinfast has invested $4 billion in a manufacturing facility in North Carolina, which is expected to begin production in 2026.
Vinfast's entry into the U.S. market comes at a time when U.S. EV pricing is under pressure, largely due to a battle led by Tesla and some Chinese automakers. In the second and third quarters of this year, Vinfast sold about 13,000 electric vehicles worldwide, more than half of which went to one of its founders' affiliates.
Recently, Vinfast launched the VF 3 electric mini vehicle priced at $20,000 in Vietnam. It is reported that the company is considering exporting it to the United States to be sold along with the VF 8 and the high-end VF 9. Starting at around $47,000 for the 2024 VF 8 and going up to $53,000 depending on the configuration and options,** the Eco version has the longest range of 264 miles per charge.
Currently, Vinfast is working to expand its market share in North America and Europe, and said it expects annual global sales to reach 75,000 units by 2026. It is estimated that the introduction of the inexpensive VF 3 mini car into the United States may increase Vinfast's chances of winning.
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