VinFast, the Vietnamese electric vehicle (EV) manufacturer, is intensifying its presence in the U.S. market through a strategic partnership with North Carolina-based Leith Automotive Group. This move marks a shift in VinFast’s distribution strategy from a direct-to-consumer model, inspired by Tesla, to a more versatile “hybrid” approach that includes collaboration with dealerships.
Leith Automotive Group takes the helm in North Carolina
The partnership gains significance as North Carolina hosts VinFast’s upcoming USD 4 billion manufacturing plant, set to commence operations in 2026. Leith Automotive Group, apart from being a sales point, assumes responsibility for all essential aspects of VinFast vehicle ownership, encompassing repairs, maintenance, and the supply of required parts.
Expansion into the US market
VinFast, backed by Vietnam’s largest conglomerate, Vingroup, entered the U.S. market earlier this year by delivering electric cars in California. The company’s Nasdaq debut in August marked a significant milestone in its global expansion strategy. With the recent partnership, VinFast aims to fortify its position in the competitive U.S. electric vehicle landscape.
Dealer applications surge across the nation
Having received 70 dealer applications across the United States, VinFast is poised to establish a robust network comprising 125 points of sale, pending approval. This expansion aligns with the company’s objective to broaden its market reach and cater to the increasing demand for electric vehicles in the U.S.
Challenges in a competitive landscape
VinFast’s entry into the American market coincides with a period of intensified competition and pricing pressures, largely driven by industry leader Tesla and various Chinese electric vehicle manufacturers. Navigating this competitive landscape requires VinFast to differentiate itself and offer compelling value propositions to discerning consumers.
Global performance and founder’s affiliation
Globally, VinFast reported sales of around 13,000 units in the second and third quarters of this year. Notably, more than half of these sales were directed to an affiliate company owned by VinFast’s founder. This performance underscores the company’s initial success and provides a foundation for its aspirations in the challenging U.S. market.
Outlook for VinFast’s US venture
As VinFast positions itself strategically with the Leith Automotive Group partnership, the Vietnamese automaker aims to carve a niche for itself in the U.S. electric vehicle sector. The partnership’s holistic approach, covering sales, service, and maintenance, reflects VinFast’s commitment to providing a seamless and comprehensive experience for U.S. customers. With the electric vehicle market evolving rapidly, VinFast’s ability to adapt and innovate will be pivotal for its sustained success in the competitive U.S. automotive landscape.