Updated December 29th, 2023 at 18:27 IST
Vietnamese EV maker VinFast teams up with Leith Automotive Group for US market breakthrough
VinFast teams up with Leith Automotive in NC for sales and full-service support, tying into the state's $4 billion manufacturing plant set to launch in 2026.
VinFast, the Vietnamese electric vehicle (EV) manufacturer, has initiated its first collaboration with a US-based dealer, Leith Automotive Group in North Carolina, as part of its strategy to boost sales in the American market. The company, established in 2017 and supported by Vietnam's Vingroup conglomerate, has shifted its distribution model from a direct-to-consumer approach, similar to Tesla, to a "hybrid" model involving dealers.
The state of North Carolina is significant for VinFast, hosting a $4 billion manufacturing plant expected to commence operations in 2026. Leith Automotive Group, in addition to serving as a sales point, will be responsible for all repairs, maintenance, and necessary parts for VinFast vehicles, as outlined in the joint statement.
VinFast, which began delivering electric cars in California in March, made its debut on the Nasdaq in late August. The company reported receiving 70 dealer applications across the United States in the previous month. If approved, these applications would enable VinFast to distribute its EVs through 125 sales points nationwide.
VinFast's entry into the American market coincides with a period of pricing pressure in the EV industry, led by market leader Tesla and various Chinese companies. The company globally sold approximately 13,000 units in the second and third quarters of this year, with over half of them going to an affiliate company owned by its founder.
(With Reuters Inputs)
Published December 28th, 2023 at 21:12 IST