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'Of course', says Vietnamese start-up, but home market leadership and US launch are the priorities
Vietnamese car company VinFast says it will “of course” sell new vehicles in Australia, but only if conditions are right.
VinFast has embraced Australia as a development base but is yet to formalise plans to sell its expanding range of vehicles here.
Instead it is focussed on becoming the number one seller in its home market and has ambitious plans to move into the US market in 2021 with an electric vehicle that is currently under development.
In an email interview with carsales, VinFast deputy CEO Ms Nguyen Thi Van Anh said Australian arrival depended on “many different aspects”.
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“If the market checks our boxes, of course we will join. Currently, our main focus is US market and then we will expand to others. Further details will be provided when the time comes,” Nguyen said.
“Research and development of new car models, including ICE and EV models, is considered to be our main focus of VinFast Australia at the moment.”
Vinfast set up an R&D office in Australia last December and formally opened it in June, employing many former Holden engineers.
It has also been linked with the purchase of Holden’s Lang Lang proving ground.
VinFast’s Australian R&D centre is involved in the development of the EV that will be the cornerstone of Vinfast’s entry into the USA.
There is no doubt VinFast is taking on a huge challenge with its US plans. The market is one of the most competitive and expensive in the world to enter. At this stage, only Tesla has successfully made inroads as an EV brand.
“Electric cars in particular and environment-friendly vehicles in general are going to be essential traffic trends in the future, especially when the world is now facing and solving serious environmental issues,” Nguyen said.
“It is expected that the US market will require 18.7 million electric cars in 2030, occupying around seven per cent in a total of 259 million cars in this country. The electric cars’ potential in the US market is enormous.
“Additionally, the US market is one of the most difficult markets in the world with lots of requirements and quality standards. With the orientation of producing high-class cars, equipped with the world’s leading technology, VinFast believes that the EV models will be welcomed by US consumers.
“This will be an important premise to expand [VinFast] to other markets in the future.”
VinFast was set up in 2017 by Vietnam’s wealthiest man, Pham Nhat Vuong, and has had quick success in its home market.
The model line-up currently comprises the small Fadil, based on the Opel Karl and the larger Lux A2.0 sedan and Lux SA2.0 SUV – which are underpinned by BMW 5 Series and X5 architectures.
Showing it has a bit of petrol-head about it, VinFast also recently launched the limited-edition Chevrolet V8-powered President SUV.
In July Vinfast sold 2214 vehicles in Vietnam, comprising 1577 Fadils, 355 A2.0 and 282 SA2.0.
The annual car market in Vietnam was about 322,000 sales in 2019, but it is tipped to climb to one million by 2030.
Nguyen said VinFast was “on the right track” to become the number one seller in Vietnam.
“VinFast has doubled its share on the Vietnamese market during the first six months of 2020, compared to the last six months of 2019, even though we only have three models,” she said.
“As a result, from May to July 2020, VinFast maintained the position as one of the top-selling cars on the market. All three VinFast models are leading their league.
“In the near future, we are going to launch new models, including ICE and EV to cover every segment. Sales of VinFast cars will certainly increase even more.”
While Nguyen acknowledged patriotism drew Vietnamese car buyers into VinFast dealerships, she insisted the appeal of the brand was grounded in more rational reasoning.
“They are all smart and practical buyers,” she said.
“They choose VinFast at the first place because of the quality and the class of the products that we offer, along with our outstanding aftersales service and practical benefits.
“Patriotism is just the motivation for them to come to VinFast … It is not the decisive factor in which product they chose.”
Will VinFast sell vehicles in Australia? - carsales.com.au
'Of course', says Vietnamese start-up, but home market leadership and US launch are the priorities
