Vietnamese carmaker VinFast, which opened its first US showrooms in California last year, has shifted into high gear by exporting more electric vehicles to North America.
Reuters reported that the young car manufacturer has shipped a second batch of 1,879 longer-range VF 8 midsize sports utility vehicles (SUVs), as it is moving aggressively to expand its operations in the North American market.
In November, VinFast dispatched a shipment of 999 of its VF8 SUVs to California from Vietnam, but needed until March to prepare them for delivery to customers after disclosing the car would have "a lower battery range than it had flagged to buyers," reported the news agency.
“After a 20-day sea journey, 1,098 of the cars of the new batch will land in California, while the remainder will go to Canada,” Reuters said citing the company.
It added that deliveries will start in May for the US market and June for customers in Canada.
The Vinfast EV startup is part of Vietnam’s Vingroup JSC, a corporate juggernaut in its home country, operating luxury resorts, shopping malls, supermarkets and hospitals.
Founded in 2017 in Vietnam, Vinfast plans to aggressively sell two all-electric sport-utility vehicles in the US: the VF 8 which starts at $40,700, and a larger VF 9, starting at $55,500, according to The Wall Street Journal.
Unlike other EV rivals, VinFast has a unique business model in which buyers pay one price for the vehicle, but then lease the battery for a monthly fee.
The company offers battery-subscription plans, ranging from $35 to $160 a month, depending on how much the owner wants to drive, the model purchased, and the type of battery.
Currently, VinFast is offering a monthly lease price of $399 for the VF 8 City Edition model for a 24-month lease, according to Reuters.
Vinfast says this cuts out risks for the consumer because the service covers all repairs, maintenance, and replacement costs, including swapping out the battery for a newer one.
The Vietnamese carmaker plans to build a production plant in North Carolina.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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