VinFast will soon launch electric vehicles on US soil, in collaboration with Pininfarina and LG Chem.
VinFast, a Vietnamese automaker founded in 2017, plans to launch an electric crossover in 2020 and hopefully enter the American market a year later. According to analysts, the company might need to do so if it wants to succeed in the long-term. The Vietnamese market is simply a bit small to be profitable enough.
At the moment, VinFast sells updated versions of the sixth generation BMW 5-Series and third-generation X5, called Lux A2.0 and Lux SA2.0, as well as a badge-engineered variant of the Chevrolet Spark.
However, the carmaker doesn’t sell its vehicles in the US market yet. But, it will change that soon, though, as VinGFast actually plans to introduce its first one at the 2020 Los Angeles Auto Show in November.
We still don’t have much information about the car itself, but market analysts expect it to be an electric crossover. To achieve that plan, VinFast is already collaborating with big names in the industry. For instance, Pininfarina will design the crossover, while the battery pack, good a driving range up to 310 miles, will come from LG Chem.
“Our biggest challenge is that Vietnamese products do not have an international brand. To many international friends, Vietnam is still a poor, backward country. We will have to find a way to market and prove our products represent a dynamic and developing Vietnam that has reached the highest standards of the world,” said Pham Nhat Vuong, owner of Vingroup.
The company hasn’t yet mentioned anything regarding the distribution network it would use in the United States. VinFast may decide to use an independent distributor or to handle sales in-house. Besides, the company didn’t announce anything about the price of its upcoming electric crossover either.
“We expect to launch a test program in January 2021 and mass-produce the cars by July 2021,” a spokesperson for the firm mentioned to Reuters.
VinFast is a part of Vingroup, known to be among the largest private conglomerates in Asia. The company holds a stake in several different sectors: real estate, retail, healthcare, and technology. It also made it to fifth place in Vietnam’s sales chart after recording 5,124 car sales in the first quarter of 2020.
With such a big name backing it up, it will be interesting to see how well VinFast can integrate the US market and compete with the more prominent players in the industry.
To be continued…