VinFast Achieves Historic Milestone: Becomes First Domestic Pure EV Player to Lead Sales Chart in Vietnam
Vietnam's automotive industry has reached a historic milestone, with VinFast Auto Limited emerging as the market leader in electric vehicle (EV) sales. In a recent earnings conference call, Vuong Pham, Chairwoman of the Board, announced that VinFast had outperformed international competitors to become the top-selling EV brand in Vietnam.
This achievement marks a significant turning point for the country's automotive industry, with VinFast being the first domestic pure EV player to reach this milestone. The company's success is attributed to its robust September performance, which saw it record its highest monthly delivery ever in the home market. This feat was accomplished despite only pivoting to a pure EV strategy early about 2 years ago.
The calibrations made to VinFast's international strategy have also started to pay off, with September being the best month in the history of the company's North American market. The growth of VinFast's dealer network and continuous improvement of its EVs have contributed to this success. With 9-month 2024 accounting for 55% of the full year target, the company expects to finish 2024 on a strong note and reiterate its 80,000 vehicle delivery target.
In terms of Q3 deliveries, VinFast reported that it had delivered 21,912 EVs, representing a 66% quarter-over-quarter increase and a 115% year-over-year jump. The company also observed a significant growth in B2C electric car sales, which grew at a robust 163% quarter-over-quarter and 497% year-over-year.
The drivers of VinFast's success include the right product and sales strategy, which has created a new demand in the domestic market. The VF3 and VF5 models have been particularly popular, with retail sales growing 159% quarter-over-quarter and 504% year-over-year in Q3 2024. These vehicles offer customers decent, cool-looking, strong build EVs at a very reasonable price.
A unique trend observed by VinFast is the growing adoption of EVs by traditional taxi operators. This shift is driven by the economic benefits of reduced maintenance and stable electricity costs compared to volatile gasoline prices. Transitioning to EVs also allows many transportation businesses to lower expenses and improve profitability, making it a major step forward in developing sustainable transportation options in Vietnam.
The company's home market holds significant potential beyond its current success, with positive trends that bring confidence on long-term EV adoption. Car ownership in Vietnam remains low, but the number of consumers with purchasing power is expected to rise significantly by 2030, with forecasts suggesting a million EVs will be owned in the country by then.
VinFast's achievement serves as a testament to its ability to balance growth and profitability while being nimble to respond to market opportunities. The company remains committed to this strategy, even as it continues to push boundaries in the automotive industry.
