Vietnamese automaker VinFast is struggling to sell enough cars to keep its factories running profitably. It hopes its new tiny electric vehicle, the VF3 mini-SUV, will boost sales.
The VF3 has a starting price of $9,200 and is only about 10 feet long, aimed at first-time car buyers in Vietnam and other Asian markets. VinFast expects to sell 20,000 units in Vietnam this year.
VinFast is facing financial losses and had to sell off assets. Its parent company Vingroup has invested heavily to keep it afloat. Success of the VF3 is important for its future.
Competition is increasing in Southeast Asia from Chinese EV brands like BYD. VinFast aims to leverage nationalism and its local production/charging infrastructure in Vietnam.
It plans to expand VF3 sales to other Asian countries in 2022-23 but faces challenges of scaling up internationally against larger rivals on costs. Success depends on improving financial performance through higher sales volumes.
Source: AP
