VinFast Delivers Nearly 21,800 Electric Vehicles in First Half of 2024, Up 92% YoY

Rhea-AI Summary

VinFast Auto delivered 21,747 electric vehicles (EVs) in the first half of 2024, a 92% increase compared to the same period in 2023. The second quarter of 2024 saw deliveries rise to 12,058 vehicles, up 24% quarter-over-quarter and 26% year-over-year. Despite economic challenges, VinFast projects delivering around 80,000 EVs in 2024, more than doubling 2023's 34,855 deliveries. The company plans a cautious approach, focusing on key markets and adjusting its North Carolina manufacturing facility's launch to 2028. VinFast aims to leverage its strong domestic market presence, diverse product lineup, and expanding global footprint to drive growth. Financial results for 2Q24 will be released on August 15, 2024.

Positive

• VinFast delivered 21,747 EVs in H1 2024, a 92% YoY increase.
• Second quarter 2024 deliveries at 12,058 vehicles, a 24% QoQ and 26% YoY rise.
• Projected 80,000 EV deliveries in 2024, more than doubling 2023's 34,855.
• Strong domestic market foundation with a comprehensive charging network and diverse product portfolio.
• Expanded global footprint, including new markets in Asia, Europe, and the Middle East.

Negative

• Economic uncertainties and macroeconomic headwinds necessitate a cautious outlook.
• Delay in North Carolina manufacturing facility launch to 2028.

Insights

Financial Analyst

VinFast's delivery numbers for the first half of 2024 are impressive, with a 92% year-over-year increase and 24% quarter-over-quarter growth in Q2. The company's ability to grow deliveries while facing economic headwinds speaks to its operational efficiency and market demand. However, VinFast's decision to revise its full-year delivery target to approximately 80,000 vehicles from the 34,855 vehicles delivered in 2023 suggests cautious optimism. While this represents 2.3x YoY growth, the prudent approach indicates a realistic view of market conditions and is sensible given the uncertainties in the macroeconomic environment.

Investors should keep an eye on VinFast's upcoming financial results on August 15th, 2024, for detailed insights into how these delivery numbers translate into revenue and profitability. The company's strategy to focus resources on immediate growth targets and delay the North Carolina manufacturing facility's launch to 2028 could lead to better capital management and potentially higher returns in the short term.

However, risks remain. Delays in the North Carolina facility could impact long-term market presence in the U.S., a critical market for EV expansion. Nevertheless, leveraging strong domestic performance in Vietnam and strategic entry into new regions may balance this risk. Investors need to monitor operating margins and cash flow in subsequent reports to gauge long-term sustainability.

Market Research Analyst

From a market perspective, VinFast's expansion strategy appears well-calibrated to current global trends. The EV industry is growing rapidly, but regional dynamics vary significantly. By focusing on strengthening its presence in key Asian markets like Vietnam, Indonesia, Thailand and the Philippines, VinFast is positioning itself in regions with high growth potential. The rapid transition from gasoline to electric vehicles in these regions offers a fertile ground for market penetration.

Moreover, VinFast's ability to achieve record deposits for the VF 3 model domestically indicates strong brand loyalty and market acceptance. Its diverse product portfolio caters to various customer segments, which is important in a competitive market. The flexible battery subscription policy is an attractive feature that could drive consumer adoption by lowering the upfront cost of ownership.

However, the global EV landscape is highly competitive, with established players like Tesla and emerging competitors in China. VinFast's success will depend on its ability to maintain competitive pricing, superior after-sales service and a robust charging infrastructure. The company's decision to optimize capital allocation and delay the North Carolina facility could be perceived as a strategic move to consolidate resources and reduce operational risks.

SINGAPORE, July 12, 2024 /PRNewswire/ -- VinFast Auto Ltd. ("VinFast" or the "Company"), a pure-play electric vehicle ("EV") manufacturer with the mission of making EVs accessible to everyone, delivered 21,747 electric vehicles in the first half of 2024, a significant 92% increase over the same period in 2023.

For the second quarter of 2024, VinFast delivered 12,058 vehicles, representing an increase of 24% quarter-over-quarter and an increase of 26% compared to the same period of last year.

While the second-quarter delivery results were encouraging, ongoing economic headwinds and uncertainties in different macro-economies and global EV landscape necessitate a more prudent outlook for the rest of the year. The Company now anticipates delivering approximately 80,000 electric vehicles in 2024, compared to 34,855 vehicles delivered in 2023, or 2.3x year-over-year growth.

As the global macro-economy and EV landscape continue to evolve, VinFast has decided to adopt a prudent and realistically strategized approach. This approach focuses on seizing near-term opportunities in a more selective group of potential markets, allowing for optimal capital and resource management, and minimizing risks more effectively. 

Recognizing the rapid transition from gasoline vehicles to electric vehicles in Vietnam, VinFast will leverage its strong foundation in the domestic market to capitalize on this growth momentum.

The Company's advantages in Vietnam include a comprehensive charging station system, a diverse product portfolio catering to different customer needs, a flexible battery subscription policy, and excellent after-sales service that builds trust and customer loyalty.

In addition, as part of its prudent expansion plan, VinFast has made the strategic decision to adjust the timeline for the launch of its North Carolina manufacturing facility, which is now expected to begin production in 2028.

This decision will allow the Company to optimize its capital allocation and manage its short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations.

Madam Thuy Le, Chairwoman of the Board of Directors, stated, "We have adopted a more prudent outlook that is carefully calibrated to near-term headwinds, taking into full consideration the realities of market volatility and potential challenges. Our robust long-term strategy and proven execution capabilities position us well to meet the evolving needs of the dynamic global EV market."

The adjustment doesn't change VinFast's fundamental growth strategy and key operating targets. The Company anticipates strong sales growth in the second half of this year, driven by a diverse product range with competitive pricing targeting a larger customer base and a rapidly expanding global distribution network in key regions, including new markets in Asia and existing markets adopting a dealership model.

The Company's strong first half performance set the stage for this growth. VinFast opened pre-orders for the mini-SUV VF 3 model domestically, achieving record deposit numbers. In Indonesia, VinFast opened dealer stores and began selling the VF e34 and VF 5 models within a few months.

VinFast also expanded its global footprint by entering Thailand and the Philippines, officially began deliveries in Europe backed by a well-developed customer care network, established a presence in the Middle East, broke ground on its first manufacturing facility in India, and expanded its global sales network.

The Company also announced that it will release its 2Q24 financial results before the market opens on August 15^th, 2024.

About VinFast Auto Ltd.

VinFast (NASDAQ: VFS), a subsidiary of Vingroup JSC, one of Vietnam's largest conglomerates, is a pure-play electric vehicle ("EV") manufacturer with the mission of making EVs accessible to everyone. VinFast's product lineup today includes a wide range of electric SUVs, e-scooters, and e-buses. VinFast is currently embarking on its next growth phase through rapid expansion of its distribution and dealership network globally and increasing its manufacturing capacities with a focus on key markets across North America, Europe and Asia. Learn more at https://vinfast.com/

Forward Looking Statements

Forward-looking statements in this announcement, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1955. These statements include statements regarding our future results of operations and financial position, planned products and services, business strategy and plans, objectives of management for future operations of VinFast, market size and growth opportunities, competitive position and technological and market trends and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "goal," "objective," "seeks," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the effect of the consummation of the business combination and the public listing of the Company's securities on its business relationships, performance, financial condition and business generally, (ii) the risk that the Company's securities may experience a material price decline and volatility in the price of such securities due to a variety of factors, (iii) the adverse impact of any legal proceedings and regulatory inquiries and investigations on the Company's business, (iv) the Company's potential inability to maintain the listing of its securities on Nasdaq, (v) the risk associated with the Company's limited operating history, (vi) the ability of the Company to achieve profitability, positive cash flows from operating activities and a net working capital surplus, (vii) the ability of the Company to fund its capital requirements through additional debt and equity financing under commercially reasonable terms and the risk of shareholding dilution as a result of additional capital raising, if applicable, (viii) risks associated with being a new entrant in the EV industry, (ix) the risks of the Company's brand, reputation, public credibility and consumer confidence in its business being harmed by negative publicity, (x) the Company's ability to successfully introduce and market new products and services, (xi) competition in the automotive industry, (xii) the Company's ability to adequately control the costs associated with its operations, (xiii) the ability of the Company to obtain components and raw materials according to schedule at acceptable prices, quality and volumes acceptable from its suppliers, (xiv) the Company's ability to maintain relationships with existing suppliers who are critical and necessary to the output and production of its vehicles and to create relationships with new suppliers, (xv) the Company's ability to establish manufacturing facilities outside of Vietnam and expand capacity in a timely manner and within budget, (xvi) the risk that the Company's actual vehicle sales and revenue could differ materially from expected levels based on the number of reservations received, (xvii) the demand for, and consumers' willingness to adopt, EVs, (xiii) the availability and accessibility of EV charging stations or related infrastructure, (xix) the unavailability, reduction or elimination of government and economic incentives or government policies which are favorable for EV manufacturers and buyers, (xx) failure to maintain an effective system of internal control over financial reporting and to accurately and timely report the Company's financial condition, results of operations or cash flows, (xxi) battery pack failures in the Company or its competitor's EVs, (xxii) failure of the Company's business partners to deliver their services, (xxiii) errors, bugs, vulnerabilities, design defects or other issues related to technology used or involved in the Company's EVs or operations, (xxiv) the risk that the Company's research and development efforts may not yield expected results, (xxv) risks associated with autonomous driving technologies, (xxvi) product recalls that the Company may be required to make, (xxvii) the ability of the Company's controlling shareholder to control and exert significant influence on the Company, (xxiii) the Company's reliance on financial and other support from Vingroup and its affiliates and the close association between the Company and Vingroup and its affiliates, (xxix) conflicts of interests with or any events impacting the reputation of Vingroup affiliates or unfavorable market conditions or adverse business operations of Vingroup and Vingroup affiliates and (xxx) other risks discussed in our reports filed or furnished to the Securities and Exchange Commission. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. You are cautioned not to place undue reliance on any forward-looking statements, which are made only as of the date of this announcement. VinFast does not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If VinFast updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. The inclusion of any statement in this announcement does not constitute an admission by VinFast or any other person that the events or circumstances described in such statement are material. Undue reliance should not be placed upon the forward-looking statements.

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SOURCE Vinfast Auto LLC

FAQ

What is the 2024 first-half electric vehicle delivery count for VinFast?

VinFast delivered 21,747 electric vehicles in the first half of 2024.

How does VinFast's Q2 2024 vehicle delivery compare to the previous year?

VinFast delivered 12,058 vehicles in Q2 2024, a 26% increase compared to Q2 2023.

What is VinFast's projected EV delivery count for 2024?

VinFast projects delivering approximately 80,000 electric vehicles in 2024.

When will VinFast's North Carolina manufacturing facility begin production?

VinFast expects the North Carolina manufacturing facility to begin production in 2028.

When will VinFast release its Q2 2024 financial results?

VinFast will release its Q2 2024 financial results on August 15, 2024.