VinFast Slows Down Thailand’s Market Expansion
VinFast, the Vietnamese electric vehicle (EV) titan appears to be holding its horses on Thailand expansion after recent automotive sales slowdown in the country.
In a statement to Bloomberg, VinFast will be “carefully evaluating” its EV sales timing. Thailand was dominating the headlines with EV’s exponential growth for at least the past 12 months till lately, soft market sentiments have concerned considerable concern. Is the Thai EV market going through a real slowdown that triggered other automakers to be extra cautious?
However, slowdown in EV sales is not concentrated in Thailand, but a global phenomena. Several of the world’s largest manufacturers including Ford Motor Co, General Motors Co, Volkswagen AG and Tesla Inc have dialled back their ambitions in recent months.
While VinFast’s billionaire founder and Chief Executive Officer Pham Nhat Vuong vowed to keep his EV arm, the company announced a delay in a North Carolina factory opening to 2028 in the name of managing short-term spending more effectively and allocate resources to focus n near-term growth targets. It also lowered its full-year sales target to 80,000 units from its previous goal of 100,000.
“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 reportedly 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.
The EV maker has signed formal agreements with several dealers, according to the statement. The statement added Thailand remains one of VinFast’s key markets and the company has made no changes to its business plans for other markets.
The company is targeting expansion to at least 50 countries in 2024. The EV maker expects to open its India factory in H1 2025 and broke ground on its new assembly plant in Indonesia last month.
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