VinFast Auto Ltd., a subsidiary of Vingroup JSC, and Vietnam’s leading electric automotive manufacturer, reported losses in Q2 despite high revenue growth.
VinFast has announced its unaudited financial results for the quarter ended June 30, 2023. Accordingly, the company posted a total revenue of $334.1 million in the second quarter of 2023, representing an increase of 131.2 per cent from the second quarter of 2022 and an increase of 303.3 per cent from the first quarter of 2023.
Meanwhile, its vehicle sales were $314.6 million, representing an increase of 147 per cent from the second quarter of 2022 and an increase of 387.3 per cent from the first quarter of 2023. The increase in vehicle sales over the second quarter of 2022 and the first quarter of 2023 was mainly due to a significant increase in EV sales volume in Vietnam in the second quarter.
VinFast recorded 9,535 EV deliveries in the second quarter of 2023, up approximately 436 per cent from the first quarter of 2023. Meanwhile, e-scooters deliveries were 10,182, a 4 per cent increase from the first quarter of 2023.
As of June 30, 2023, VinFast had 122 showrooms globally for EVs and 245 showrooms and service workshops for e-scooters.
Loss from operations were $387.8 million in the second quarter of 2023, down 20 per cent from the second quarter of 2022 and down 17.2 per cent from the first quarter of 2023.
As a result, VinFast incurred a gross loss of $114.1 million, down 7.5 per cent from the second quarter of 2022 and down 28.7 per cent from the first quarter of 2023.
VinFast has achieved great milestones in the past. The EV automaker has begun construction of its electric vehicle factory in North Carolina with a capacity of 150,000 vehicles per year.
VinFast has also announced its expansion strategy into the markets of Indonesia, Malaysia, India and Middle Eastern countries. Currently, VinFast is operating mainly in three markets: Vietnam, North America and Europe (France, Netherlands, Germany).
The company expects its deliveries of vehicles to be between 40,000 and 50,000 vehicles in 2023. It has sufficient runway to grow in the coming years while continuing to look for opportunities to strengthen its balance sheet.
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