VinFast, a Vietnamese manufacturer of electric vehicles (EVs), announced on Thursday that it only delivered approximately 35,000 vehicles in 2023—below its goal of at least 40,000 units. VinFast attributed this to the unpredictability of the economy, fierce competition, and slow EV adoption in some areas. But according to the company, deliveries in the final three months of 2023 rose 35% from the third quarter to 13,513 units.
Earlier this month, VinFast announced plans to establish manufacturing and battery facilities in India. VinFast began delivering its sport utility vehicle (SUV), the VF 8, in California last March. It also intends to penetrate additional markets in Asia, the Middle East, and Latin America, including Indonesia.
About 60% of the deliveries in the second and third quarters went to VinFast’s affiliate Green SM (GSM), a Vietnam-based taxi operator and leasing provider that is primarily owned by VinFast CEO Pham Nhat Vuong, despite the company not providing a clear breakdown of sales by market in Thursday’s announcement.
A senior VinFast official informed Reuters in October that this year’s sales would extend to GSM. Entering the EV market at a time when car prices were under pressure due to layoffs at market leader Tesla and Chinese companies like BYD and VinFast, which has yet to turn a profit, came into play.