VinFast, an electric vehicle (EV) maker based in Vietnam, has lowered its sales target for 2024 in the wake of tough market conditions.
VinFast said it aims to deliver 80,000 electric vehicles this year as compared with its previous target of 100,000 EVs.
VinFast will reveal more details about its financial performance for the second quarter on August 15. VinFast’s revenue in 2023 touched $1,198 million. VinFast delivered 34,885 electric vehicles and 72,468 electric scooters in 2023.
VinFast is also delaying the launch of its $4 billion factory in North Carolina to 2028.
VinFast has achieved 24 percent increase in the number of electric vehicles sold in the second quarter to about 12,000 vehicles, compared with the previous three-month period. In total, VinFast sold 21,747 units in the first half of 2024, an increase of 92 percent against the same period last year, but around one-fourth of the new yearly forecast.
The EV maker expects strong sales growth in the second half of the year, driven by a diverse product range and expansion in regions, including new markets such as Indonesia in Asia and existing markets.
VinFast said it would delay the launch of its planned factory in North Carolina, the United States, to 2028 from the current plan of 2025.
VinFast aims to would build an EV and battery factory in North Carolina with a production capacity of 150,000 vehicles, seeking to take advantage of the Biden administration’s efforts to approve subsidies for EVs made in America.
VinFast invested $213 million in capital expenditures during the fourth quarter of 2023, primarily on the development of its VF 6 and VF 7 models, its North Carolina manufacturing plant and on developing showrooms and charging stations.
In India, VinFast has announced the groundbreaking for the Electric Vehicle manufacturing facility in Thoothukudi City. The EV plant will have a capacity of up to 150,000 electric vehicles per year.