According to Nikkei Asia, Vietnamese electric vehicle (EV) manufacturer VinFast will reduce prices for most of its EV models in the domestic market starting this month. The company aims to double its sales this year, building on strong growth in 2024.
On March 2, VinFast announced price cuts for 11 models, with reductions ranging from 2% to 14%. Additionally, the company will gradually phase out its EV battery leasing service. The move is intended to lower customers' initial costs, which were previously increased due to the mandatory purchase of batteries. The biggest discount applies to the high-end VF 9 Eco model, which will see a price reduction of 181 million VND (approximately $7,050).
In 2023, VinFast's global sales reached 97,399 vehicles, with 87,000 units sold in Vietnam. More than half of its annual sales occurred in the last quarter, driven by extended free charging programs and faster insurance claim processing. Moving forward, VinFast's retail customers will be able to use the company's free charging service until June 30, 2027.
Additionally, on March 1, the Vietnamese government extended its free vehicle registration policy for EVs until February 2027. This policy aims to promote EV adoption, reduce pollution, and support the growth of the manufacturing sector. Vietnam has set an economic growth target of 8% for this year, with aspirations for double-digit growth in the coming years.
Last week, VinFast stated that market demand for battery leasing has declined since the service was introduced three years ago. The company noted that more EV owners are opting to purchase batteries outright, attributing this trend to its free charging policy and a 10-year warranty for both vehicles and batteries. Customers who leased batteries before March 1 can continue using the service or purchase the batteries at a discounted rate.
In 2024, VinFast surpassed Toyota and Hyundai to become the best-selling car brand in Vietnam. Despite its domestic success, the company faces uncertainties in the global market due to weak demand and intense price competition. This year, VinFast plans to more than double its global production capacity, supported by its second factory in Vietnam and new plants in Indonesia and India. However, its U.S. factory project has been delayed.
