Vietnamese EV’s Are Here!

The automotive market has been experiencing seismic shifts in the past few years. Older, more established companies have been experiencing a drop in sales while new companies like Genesis have taken the market by storm. There’s never been a better time for a new automotive company to come around. I’m not the only one who thinks so, apparently so does Vietnam.

Let’s back up for just a moment and appreciate the gravity of what is happening. I mentioned ‘seismic changes’ earlier and I meant it. Ten years ago who would have ever believed that South Korea would be capable of producing world class luxury vehicles? Genesis has more than proved themselves able. Or consider Rimac, a company from Croatia, of all places. Rimac currently builds some of the fastest hypercars on the plane, pushing the boundaries of what are possible with EV’s. Now there’s VinFast, from Vietnam.

What makes VinFast significant? How are they any different from the dozens of start-ups vying for attention? For one VinFast is already a profitable company, currently their net worth is estimated at about five billion dollars. Making VinFast a very important company for Vietnams economy. Expanding into the United States is a strategic move. Currently the United States has the largest EV market, opening up new possibilities. Of course moving form Vietnam to the United States means even more competition to deal with as well. How does VinFast plan to stand out in a rapidly growing sector?

First is through design, the two debut models coming from VinFast were designed by renowned Italian designer, Pininfarina. You may not be familiar with the name, but you will recognize their main client, Ferrari. Pininfarina designed the VF8 and VF9 models with simplicity and taste. Both models are very pleasing aesthetically, luxurious without being polarizing.

VinFast also have good numbers, the VF8 pricing at $47,200 and the VF9 coming in at $72,000. While pricing is decent for a quality product, range is an issue. The VF8 only clocks in 207 miles of range while the VF9 barely makes 330. These aren’t poor numbers, mind you, but they aren’t the kind on numbers you need to compete on the level with Tesla either.

Here’s another strange feature, battery subscriptions. Whenever you buy any vehicle from VinFast you will have to essentially lease the battery. This bizarre setup was explained by the CEO who claims that by subsiding to the batter this will solve the largest issue with EV ownership, battery longevity. The reality is, with owning an EV, you can only expect to get around 2-3 years before you have to replace the batteries, and that can be quite costly. With VinFasts battery subscription plan any potential damage or malfunction with the batteries is covered by them. When the batteries wear out they will replace it without charging you any extra money. It’s an interesting idea.

The road ahead will be steep for VinFast, attempting to gain a foot in the US market will be difficult. Trying to convince buyers of the validity of a Vietnamese vehicle I only the start. Then again, ten years ago who would have ever thought that places like South Korea or Croatia would be manufacturing world-class vehicles? Established automakers like Mercedes, GM and Ford should be keeping a careful eye on these companies. Companies like VinFast are proof that the automotive market isn’t shrinking at all, the market is merely shifting. Allowing for new ideas, and new products.