VinFast eyes Europe expansion amid potential EU tariffs on Chinese EVs

The EV maker plans to deliver approximately 3,000 EVs to France, Germany, and the Netherlands in the fourth quarter of 2023, as the EU contemplates imposing import tariffs on Chinese EV competitors, according to a recent Reuters report.

VinFast’s CEO Le Thi Thu Thuy revealed that the company anticipates introducing its VF8 models in France, Germany, and the Netherlands in Q4 this year.

"Other models like the VF6, VF7, and VF9 are slated for a 2024 launch," she added.

“Thuy did not indicate the number of VF8 sport utility vehicles (SUVs), but a person familiar with the matter said it would be around 3,000 vehicles, including some for Israel,” Reuters wrote.

This move marks a significant growth target, with the company aiming to quadruple its European sales volume, a considerable jump from its earlier modest target of 700 EVs.

The EU's stringent scrutiny of Chinese EV makers and the anticipated imposition of import tariffs could present a lucrative opening for VinFast. If the company achieves its plans, Europe could be its largest foreign market this year. Prior to this, VinFast exported approximately 2,100 EVs to the US.

Furthermore, Thuy stated that their VF8 model has been approved for sale in 27 EU countries, complying with requisite standards. VinFast is also in the process of securing the Euro NCAP safety rating.

Inovev, a consultancy firm, highlighted that Europe remains a substantial market for Chinese EV brands, with 70,000 units sold in the first seven months of this year, nearly tripling on-year figures. If the EU's investigations conclude in favour of levying tariffs on Chinese EVs, VinFast's offerings could prove to be more price competitive.

VinFast's European expansion is part of its global strategy, which includes establishing new manufacturing facilities in the US and Indonesia while also targeting markets in India, the Middle East, Africa, and Latin America.

On September 12, VinFast unveiled its ambition to invest approximately $1.2 billion in Indonesia. This would include between $150 million and $200 million for a manufacturing facility, set to commence operations in 2026, with a capacity of 30,000 to 50,000 vehicles per year.

The new facility would complement VinFast’s primary plant located in Vietnam's northern port city of Haiphong, and its upcoming site in North Carolina in the US, which is to be up and running by 2025.

Fresh off its recent Nasdaq listing, VinFast has also expressed its intention to widen its global footprint by establishing itself in India, Malaysia, the Middle East, Africa, Latin America, and Europe.

By the end of June, it had delivered 11,315 EVs, primarily for the Vietnam’s market, leveraging its strategy to cater to taxi fleets. The carmaker's Q1 revenue saw a decline of 49 per cent on-year, with a net loss of approximately $25.2 million.

Chinese battery firm Gotion invests $150 million in VinFast Chinese battery manufacturer Gotion Inc. has agreed to acquire 15 million ordinary shares of VinFast through a private issuance valuing the shares at $10 apiece, with an investment totalling $150 million, representing 0.7 per cent of VinFast's total equity.

VinFast sets sights on Indonesia with $1.2 billion expansion VinFast has pinpointed Indonesia as a focal point in its strategic expansion, with the country's abundant nickel resources - a crucial component for electric vehicle (EV) batteries - presenting a considerable attraction for EV manufacturers globally.

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