Vingroup, the parent company of VinFast, posted a pre-tax loss of around 23.9 trillion Vietnamese dong (around USD1 billion or RM4.4 billion) at its manufacturing segment last year, according to a report by Nikkei.
The loss was attributed to poor sales of internal combustion engine (ICE) cars in Vietname as well as growing investments in the company’s electric vehicle business. Last year, sales of VinFast ICE cars amounted to 35,700 units, which represents a 20% year-on-year increase from 2020. Despite this, the group’s assembly plant in Cat Hai, Hai Phong, which began operations in 2019, is operating well below its capacity of 250,000 vehicles a year.
VinFast has already said it will stop making ICE-powered cars and transition to become fully electric by the end of 2022. On the electric vehicle (EV) front, Vingroup revealed that VinFast had received nearly 40,000 pre-orders for its EV models after less than four weeks of launch.
The VF e34 is the brand’s first EV model and was launched in 2021. This year, the company will introduce the VF5, VF8 and VF9, while from 2023 onwards, there will be the VF6, VF7, a new sedan model as well as other future models or derivatives.
The push for EVs will see Vingroup invest considerably, including to set up a battery plant as well as establishing sales networks in the United States and Europe. Pham Nhat Vuong, the founder and chairman of Vingroup, told local media that further losses in the automotive business are anticipated in the near term.
Looking at Vingroup’s overall financial performance, the conglomerate recorded a consolidated net loss of roughly VND7.5 trillion (around RM1.38 billion), a first and a significant departure from the VND4.5 trillion (around RM829 million) profit in 2020.
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crash and burn
Proton: Say what??
LOL! Will the people accept it?
Imagine if Proton loses RM 4billion a year. People here would have flip cars not just tables long time ago!
Isn’t Vinfast a private company? plus they’re not targeted for the masses like P1 or P2.
main problem. not many in vietnam can afford a car.
Only the top 1% in Vietnam could afford it and they rather choose Germans or British luxury marques.
Semi V..you may be partially correct.
Vietnamese can afford guns and cheap cars.
Not what Vinfast is producing.Being a new player is not easy.But seemingly,they have strong financial backers in spite of heavy start up losses.
They end up like our P1,requiring frequent state bailouts.
Difference is those who criticise P1 don’t get sued or jailed, unlike Vinfast.
Next chapter is to partner up with other drowning brands…
If change the badge to Toyota, then will sell like hot cakes
Toyota badged but priced like BMW who will buy?
Lucky this was in Vietnam where those who persoal will be jailed. If this happen to Proton, sure kena bash like heck.
Lesson never learnt..
Vin Diesel’s group?