Electric Vehicle (EV) manufacturer VinFast is undeterred by the global slowdown in EV growth and the company's underperformance in the US market, as it continues its expansion in Asia.
According to Bloomberg, Nhat Vuong Pham, founder of VinFast and chairman of its parent group Vingroup, revealed that the VinFast factory in India will commence operations in the first half of 2025, 6 months ahead of schedule.
VinFast's Indonesian factory will begin construction within the next two months and is planning to start production by the end of 2025, ahead of the original 2026 target. Vuong stated that the initial production capacity for the Indonesian and Indian plants is 50,000 vehicles, with the potential to increase to 300,000 annually based on market demand.
VinFast also plans to establish a battery manufacturing plant in India. The company has partnered with Chinese battery giant Gotion High-Tech to set up a battery joint venture in Vietnam.
VinFast strives to gain a foothold in the EV market as it announces these growth plans. The company set a target to deliver 100,000 vehicles in 2024 but delivered only 9,689 in the first quarter.
In August 2023, VinFast went public in the US market through a Special Purpose Acquisition Company (SPAC). Its stock price soared over 700% within two weeks before plummeting and losing more than 90% of its value.
The global slowdown in demand for EVs has worried competitors such as Tesla and Volkswagen. However, Vuong remains optimistic, believing that the growth of EVs is inevitable.
VinFast began delivering vehicles to US customers in 2023 but has faced challenges in becoming a profitable international brand. Chinese competitors produce cheaper EVs with increasing export volumes, which has forced Tesla to employ significant price cuts.
In July 2023, VinFast began building a factory in North Carolina, USA. It is slated to start production in 2025 with an initial annual capacity of 150,000 vehicles.
However, Vuong mentioned that VinFast is evaluating investor concerns regarding the costs associated with the North Carolina plant and the pros and cons of delaying its operations. Vuong stated that there are currently no plans to downsize or cut the plant's production capacity.
