VinFast will stop producing vehicles with internal combustion engines and go fully electric by the end of the year, as the car brand of Vietnam’s biggest conglomerate accelerates its push into next generation automaking.
VinFast, a unit of Vingroup, announced the transition at the Consumer Electronics Show in Las Vegas. Le Thi Thu Thuy, VinFast’s global chief executive, said the company, which plans to begin delivering cars in the US and Europe this year, aims “to be one of the leading electric vehicle manufacturing brands in the world”.
The international push is a high-profile effort for Vingroup, which was founded by Pham Nhat Vuong, Vietnam’s richest man. It is also a bold bet for the country, which has built its fast-growing economy on manufacturing for foreign companies but has few internationally known branded products of its own.
“This bold move makes VinFast one of the world’s first automotive companies to completely switch to pure electric, affirming its position as a leader in the global EV revolution,” the carmaker said.
EVs account for a small share of vehicle sales worldwide because of their higher price and recharging needs. Uptake has been particularly slow in emerging markets such as Vietnam. To reduce costs VinFast has allowed customers to lease the car battery — the most expensive part of the vehicle.
Vingroup sold about 33,000 cars in its home country between January and November 2021.
Titikorn Lertsirirungsun, Asean manager for LMC Automotive, the consultancy, described VinFast’s gambit as “high risk, high return”.
“If VinFast wants to go to the global market in the US and in European countries, I think it’s a good strategy to enter with battery electric vehicles,” he said. “If you enter with a conventional power train, you have to compete with the old brands, but if you enter with new technologies, you will be different from other brands.”
Vingroup bought foreign technology and recruited executives from incumbent carmakers to launch its car venture in 2017. The company built a factory in Haiphong, east of Hanoi, that began producing cars and electric scooters in 2019. Its five EVs were designed by Italian houses Pininfarina and Torino Design.
VinFast said it was planning to launch its all-electric line-up in five segments, ranging from subcompacts to sport utility vehicles. On Thursday, it announced pricing ranging between $41,000-$61,000 in the US and €36,133-€53,413 in Europe, not including taxes.
Thuy replaced Michael Lohscheller, a former head of German carmaker Opel, as global chief executive last month. The company said Loscheller stepped down for personal reasons.
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