Tesla Motors is paving the way for an all-electric future. It's one of the companies that should be credited with the ongoing shift to electric vehicles. It's dominance in the United States' EV market is undeniable, but it's facing more and more challengers. Perhaps the greatest challenger to Tesla might not be a carmaker from the US, Europe or China. It might be a newly established EV maker from Vietnam – VinFast.
An Ambitious Vietnamese Automotive Startup
VinFast might be only three years old, but the carmaker has already become one of the Top 5 car brands in Vietnam. It has a huge backer in the persona of Vingroup, which is considered the largest conglomerate in the country. To ensure it can build attractive yet quality cars, VinFast has tapped the like of Pininfarina, BMW and Magna Steyr as design and manufacturing partners.
While VinFast sold around 30,000 units in Vietnam in 2020, the company remains in the red, according to report from Reuters. This is quite understandable since the company is a fairly new carmaker and start up costs take a while to recoup. Despite that, VinFast has already mustered the courage to expand beyond its home country to the US.
Huge Expansion Plans To The US And Europe
With a conglomerate engaged in real estate, resorts, schools, hospitals and smartphones behind its back, VinFast could be well-armed to enter markets outside of Vietnam. VinFast CEO Nguyen Thi Van Anh told Reuters that the company will launch in North America (US and Canada) and Europe (Germany, France and the Netherlands) in 2022 – all at the same time. Not only that, VinFast is even eyeing to be listed in the US with a valuation of up to $60 billion, two sources privy with the matter told Reuters.
The company's main weapon for its planned US conquest would be a new electric SUV that would be more luxurious yet more affordable than those currently in the market. Van Anh, who will be relocating to Los Angeles to pursue VinFast's dreams, didn't disclosed the price of the new SUV, but it would have to be competitively priced against Tesla's $50,000 offering.
Battery Leasing Scheme To Attract Customers
Part of VinFast's plans would be a battery leasing scheme. Not included in the final price of the EV, the battery would entail customers paying a monthly amount equivalent to the average gas spending of US consumers. To keep the battery as fresh as possible, VinFast would replace the unit at 70% of its full lifespan. Plenty would have to be worked out to make such a plan viable, but it does show fresh thinking in what is still a fluid marketplace.
Source: Reuters