Is VinFast in trouble with its ASEAN expansion plans? The signs are there when it comes to Thailand as an EV price war and a weakening market over there has the Vietnamese automaker postponing its launch plans. One automotive website is even saying that the postponement is leading to a full-blown pull out.
The company will “carefully evaluate” the timing of sales of its EVs in the country, according to an emailed statement sent by VinFast to Bloomberg.
According to the Bloomberg report:
According to the Bloomberg report:
“We have postponed the launch of our dealerships in Thailand to ensure that our infrastructure and operations align with VinFast’s global standards,” the company said.In March, VinFast signed letters of intent with 15 initial dealers in Thailand with the goal of opening 22 showrooms in the greater Bangkok area. No time frame was given. VinFast has signed formal agreements with several dealers, according to the statement.Thailand remains one of VinFast’s key markets and the company has made no changes to its business plans for other markets, according to the statement.Last month, VinFast said it will delay the opening of a factory in North Carolina by three years to 2028 to manage short-term spending “more effectively” and focus resources on near-term growth targets. It also lowered its full-year sales target to 80,000 units from its previous goal of 100,000.
However, according to Thai automotive website Headlightmag, the situation is much more dire. In a Facebook post, it said (translated from Thai):
Even though the name [VinFast Thailand] is still there, the company has stopped all operations. Because of the price war that the pen is running out of red ink, they can’t set the price to compete…Several dealers in Thailand have reported that they are preparing to file claims for damages from the investment this time.On a brighter note, VinFast’s Thailand pull out has them focusing on another ASEAN market: the Philippines. The same Thai automotive website says executives from VinFast Thailand will be moved to strengthen its operations over here.
After its brand launch last May, VinFast Philippines hit the ground running and established agreements with four dealer groups to expand their presence. Since then, they’ve managed to open five dealerships—three in Metro Manila, one in Isabela, and one in Iloilo City; that’s just one short of the target they’ve set for 2024.
VinFast Philippines has also launched their entry-level EV offering, the VF5. This entry-level EV SUV can be purchased outright at P 1,191,000 or can be purchased with a unique battery subscription option for P 992,000. They will also launch the VF 7 and VF 9 by the end of this year, while also quietly removing the VF e34 from their website.
Trouble is normal for a startup company like Vinfast. It just means there so much of room for improvement.
ReplyDeleteVinfast can't beat MG,Dongfeng,GWM and BYD in Thailand and in the Philippines right now
ReplyDeleteVinfast needs a very affordable small EV like the VF3 in the Philippine market next year
VF e34 seems to be pulled out due to pricing issues..It won't stand a chance against the MG4,Dolphin and ORA3 400
Probably bcoz of byd pricing in thailand
ReplyDeleteCracks are starting to show with Vinfast's pull out in Thailand and the grave error of putting all their eggs in the unsustainable and problematic EV platform. They will soon realize that PH motorists are more well informed of the drawbacks and folly of having electric vehicles with the high acquisition costs, danger of spontaneous combustion whether running, charging or parked, range and charging anxieties and very low resale values. Just like in most countries who are early adapters of the EV, they have realized their mistakes as sales of EVs are on a sharp decline and manufacturers are shifting back to ICE cars and buyers regretting their EV purchases.
ReplyDeleteFilipino car buyers aren't well informed
DeletePinoys still believe that Toyota,Mitsubishi,Nissan and Isuzu are better even if these Japanese car manufacturers are left behind now by Chinese car manufacturers in terms of technology,build quality,innovation and reliability.
Most Filipinos prefer proven technology, build quality and reliability which are the selling points of most Japanese cars. Chinese cars may have more technology and innovation but they are still not as reliable. Most people do not need all the latest technologies and its complications and the problems inherent in EVs as they are better off with proven Japanese cars.
DeleteHistory of US automotive industry will be repeated in China. Most of China's existing car manufacturers will go bankrupt or be acquired.
ReplyDeleteVinfast is Vietnamese 🤣
DeleteState owned and big time privately owned Chinese car and truck manufacturers ain't gonna go do down easily
Geely already bought a lot of foreign brands,GAC is offered to buy Alfa Romeo and Dodge,GWM is offered to buy Jeep,Tata wants to sell JLR to Chery and many more 🤣
I'm not fond of any chinese car brands but this obviously seems rubbish. You do realize that you need something like the 2008 economic crisis all over again for that one to happen, right? Smh. 🤦♂️
DeleteState owned and privately owned Chinese vehicle manufacturers are surely gonna survive and be in business for a very long time
Deletedue to good sales and vast funds 🤣
Dongfeng can easily buy financially in trouble Nissan if they want to 🤣
Vinfast needs a lot of subsidy like the Chinese cars to survive.
ReplyDeleteVinfast is a privately owned vehicle manufacturer
DeleteVietnamese government isn't interested of giving too much perks in it
I just don't understand why automakers are betting all in on EVs even if they aren't sure that BEVs are the real future.
ReplyDeleteThere is a powerful group who has their own controlling agenda that mandates all cars must be EV and in Europe they set it at 2035. That's why a good number of automakers followed this directive but are finding out that this may not be the best business decision as EVs are problematic as there is a steep decline in sales and acceptance and sales are not as they hoped it would be.
DeleteIt is the future, those who didn’t have the foresight are loosing…japs, Koreans, European and others
DeleteBEV is much better and more cost effective
DeleteHydrogen that Toyota and Honda are harping are very expensive to produce and not that safe.
A Filipino should also create his own car company...
ReplyDeleteI wont be surprised if Philippines will be the one soon. I dont get why they are so keen on hiring local experts and industry veterans when they just dont listen. Everything is rushed and people in the main office will push for unrealistic things. Its ticking time bomb.
ReplyDeleteFrom an ecological perspective, H2 is a sound plan and better than EV. But in business the one who creates a standard first could win in the end. This is the fault of the Japanese because they decide slowly and did not invest sufficient capital to drive research. But then again, no amount of capital from all the Japanese carmakers can compare to the pocket of the PROC government.
ReplyDelete