Electric Vehicles

VinFast Plans Promotions in Response to Tesla EV Price Cuts

 

Vietnam’s electric-vehicle (EV) maker VinFast said on Thursday it will launch promotions to protect the market competitiveness of its models.

The decision came a week after rival EV-maker Tesla announced aggressive discounting to spur demand.

VinFast, which started operations in 2019, is gearing up to expand in the United States. It hopes to compete with existing automakers in the US by offering two models, the VF8 and VF9, with starting prices of $59,000 and $83,000, respectively.

 

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Tesla is offering its basic Model Y at $52,990 in the US market, a reduction from $65,990.

“As a new brand entering the market, when other brands reduce their prices we have to come up with promotions to ensure VinFast’s competitiveness,” a VinFast spokesperson said in a statement.

“We are considering many promotion programmes and will announce [them] soon.”

The statement did not specify whether the promotions would include price cuts.

The Vietnamese EV maker started to ship its first batch of 999 EVs to the United States in late November and aims to deliver them to customers this month, the spokesperson said.

VinFast has said it has secured almost 65,000 orders globally and expects to sell 750,000 EVs annually by 2026.

The automaker plans to build an EV plant in the US state of North Carolina and is awaiting final regulatory approval from local officials.

 

  • Reuters, with additional editing by Vishakha Saxena

 

Also read:

Vietnam’s VinFast Taps Banks for $4 Billion for US EV Plant

Buyers Say Tesla Forced Them to Close Orders Before Price Cuts

Tesla Bags 30,000 Orders After China Price Cuts – Tesmanian

Chinese EV Maker BYD Planning $250m Vietnam Parts Plant

 

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at vishakha.saxena@asiafinancial.com

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