VinFast Enters US Market with Electric Crossovers

VinFast's Debut at the LA Auto Show

VinFast, the automotive manufacturer originating from Vietnam and operating under the Vingroup umbrella, was among the many new companies exhibiting at this year's LA Auto Show, seeking to capture the attention of potential buyers.

The automaker presented two fully electric crossover vehicles during the event. Similar to many new companies entering the automotive industry – or, in VinFast's specific situation, the U.S. market – these vehicles are currently not in the manufacturing phase.

Limited Specifications and Initial Customer Engagement

VinFast released limited technical specifications regarding the showcased vehicles, which are projected to arrive in the U.S. market in late 2022. Attendees at the auto show were given the opportunity to register their interest and potentially be among the first to experience the vehicles, utilizing a Typeform registration process.

During a Thursday interview with TechCrunch, VinFast US CEO Van Anh Nguyen explained the company’s current focus. “Our primary goal at this stage is customer registration. We aim to gather data and build a comprehensive database to identify customer locations and levels of interest. Subsequently, we will provide updates regarding product development and service offerings.”

Reservation Details and Future Test Drives

Potential customers will have the option to place a deposit to reserve their preferred vehicle in one of eight available colors during the first quarter of 2022. Update: Ms. Nguyen initially stated the deposit amount would be $500.

However, a company spokesperson clarified that this information was inaccurate and that the final reservation deposit amount is still under consideration, with an official announcement forthcoming at a later date.

Moving Forward with U.S. Market Entry

As stated by Ms. Nguyen, once the vehicles are available, interested customers will be able to schedule test drives and decide whether to finalize their purchase, converting their initial deposit. Despite the current lack of detailed specifications, VinFast is demonstrating a rapid pace in its plans for entering the U.S. automotive landscape.

VinFast's Extensive U.S. Expansion Plans

VinFast’s ambitions in the United States encompass far more than simply offering electric SUVs for sale. The automaker has revealed substantial plans involving an investment exceeding $200 million. This investment will facilitate the establishment of a U.S. headquarters situated in Los Angeles.

Furthermore, the company intends to launch a network of over 60 retail locations, alongside numerous service facilities and mobile service options, all by the year 2022.

A manufacturing plant is also included in VinFast’s long-term strategy, though its anticipated opening is scheduled for the latter portion of 2024.

Rapid Growth and Investment

This accelerated expansion for VinFast will necessitate considerable financial resources and a significant workforce.

According to Nguyen, who has been working in the U.S. for 14 months, her primary focus has been assembling the team responsible for introducing VinFast vehicles to the American market.

The precise location of the planned manufacturing facility remains undisclosed at this time.

Future Plans and Market Position

VinFast recently informed Reuters that a listing on the U.S. stock exchange is projected within the coming years.

While established Asian automotive brands such as Hyundai, Kia, Toyota, Subaru, and Mazda (all originating from Korea and Japan) have successfully entered the U.S. market, VinFast represents the inaugural attempt by a Vietnamese company to do so.

Notably, previous efforts by Chinese automakers, including BYD, to penetrate the U.S. market have not been successful.

Key Investments: Over $200 million
Headquarters Location: Los Angeles
Retail Locations: More than 60 stores planned by 2022
Manufacturing Facility: Expected to open in the second half of 2024

The company is prioritizing the development of a robust infrastructure to support its growing presence. This includes not only sales and service centers but also convenient mobile service options.

VinFast’s entry into the U.S. market marks a significant milestone, positioning it as the first Vietnamese automotive company to pursue this endeavor.

What is VinFast?

VinFast operates as a subsidiary of Vingroup, a privately held Vietnamese conglomerate established in 1993.

Vingroup’s diverse portfolio spans numerous sectors, including real estate, hospitality, industrial manufacturing, technology, and education.

The automotive division, VinFast, initially revealed its first vehicles with internal combustion engines at the 2018 Paris Motor Show.

These initial offerings consisted of two luxury sedans powered by BMW engines.

Subsequently, VinFast expanded its product line to include e-scooters, Lux SUVs, and automobiles tailored for the Vietnamese domestic market.

The company reports that its vehicles rapidly achieved the highest sales velocity within Vietnam in under a year.

Recently, VinFast introduced an all-electric bus and additional scooter models in Vietnam.

Furthermore, the company showcased the VinFast VFe35 and VFe36 SUVs at the LA Auto Show, positioning them as vehicles for the global market.

In several respects, VinFast’s structure mirrors that of the Hyundai Group, where the automotive business constitutes a relatively small fraction of the overall conglomerate’s operations.

VinAI and Advanced Driver-Assistance Systems

Vingroup also owns VinAI, a distinct legal entity focused on developing an in-car artificial intelligence (AI) system.

A demonstration at the auto show indicated this system monitors driver behavior, detecting inattention, phone usage, or drowsiness through seat movement tracking.

The system integrates sensors and cameras to identify potential hazards, such as pedestrians and scooters, and assist in collision avoidance.

Two Electric SUVs Geared for the Global Automotive Landscape

VinFast is preparing to manufacture the VFe35 and VFe36, both fully electric SUVs, at its highly advanced production facility in Vietnam. This facility boasts an impressive 90% automation rate. The design of these vehicles represents a collaboration with the renowned automotive design house, Pininfarina.

Pininfarina has a celebrated history, being responsible for the aesthetics of iconic Ferraris and the creation of the high-performance, all-electric Pininfarina Battista, which carries a price tag of $2 million.

Projected Range and Model Variations

VinFast anticipates that these SUVs will achieve a driving range of approximately 300 miles on a single charge. Specific details regarding battery capacity and charging capabilities were not disclosed during the initial announcement.

According to Nguyen, two distinct versions will be available for each model: the Eco and Plus trims. The VFe35 Eco is projected to offer around 285 miles of range, while the Plus version will extend that to approximately 310 miles.

The larger VFe36 is expected to deliver around 310 miles of range in its Eco configuration, with the Plus model achieving an estimated 420 miles.

Prototype Specifications and Features

The SUVs showcased at the LA Auto Show were prototype models. Initial specifications indicate that both the VFe35 and VFe36 prototypes generate 402 horsepower and 472 lb-ft of torque.

These vehicles are equipped with a comprehensive safety suite, including multiple airbags, and incorporate advanced technology such as a virtual assistant. Additional features include remote vehicle control via the VinFast app, an integrated e-commerce service, in-car gaming, and a mobile office suite.

Furthermore, the vehicles will utilize location-based and behavioral advertising.

Strategic Partnerships in Battery Technology

VinFast is actively forging partnerships with key industry players. While the specific battery supplier remains confidential, Nguyen confirmed that the battery cells originate from a “very, very famous company.”

The assembly of battery packs will take place at VinFast’s Vietnamese manufacturing facility. “We’ve been working closely with our battery partners, including ProLogium and others,” Nguyen stated. “We have chosen highly experienced partners in battery technology.”

ProLogium is a Taiwan-based company specializing in the development and production of solid-state batteries.

Advanced Driver Assistance and Interior Technology

Both vehicles will feature a standard suite of advanced driver-assistance systems (ADAS). A full-color head-up display will be included, alongside a large 15.5-inch touchscreen.

This touchscreen offers customizable functionality, allowing users to display a personal photo in “zen mode” with a simple swipe gesture.

Prototype Access and Production Timeline

Access to the interiors of the vehicles on display at the LA Auto Show was restricted. The VFe35 prototype showcased a seemingly complete interior, though it lacked a digital instrument cluster. The VFe36 prototype, however, did not have an interior installed.

VinFast is committed to exclusively offering electric vehicles within the U.S. market. The company’s remarkably swift, four-year timeline from inception to vehicle production is unusual within the automotive sector.

Vehicle deliveries are currently scheduled to commence in late 2022. Further evaluation will be necessary to assess the overall success of this ambitious undertaking.