In what clearly marks a shift of focus to emerging markets, Vietnamese EV OEM breaks ground on Indonesian plant which is slated to begin manufacturing operations in Q4 2025. Meanwhile, VinFast has deferred the opening of its facility in North Carolina, USA, to 2028, three years later than scheduled.
16 Jul 2024 | 3079 Views | By Ajit Dalvi
Vietnamese electric vehicle manufacturer VinFast has broken ground on its new EV plant in Indonesia on July 15. The investment in the project, which is expected to commence production in Q4 CY2025, is estimated to be around US$ 200 million (Rs 1,666 crore).
Located in Subang, West Java, ...
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Vietnamese electric vehicle manufacturer VinFast has broken ground on its new EV plant in Indonesia on July 15. The investment in the project, which is expected to commence production in Q4 CY2025, is estimated to be around US$ 200 million (Rs 1,666 crore).
Located in Subang, West Java, the facility will have an annual manufacturing capacity of 50,000 units and produce electric SUVs like the VF 3, VF 5, VF 6 and VF 7 for the domestic Indonesian market. The plant groundbreaking comes a few months after VinFast entered the Indonesian market with two electric SUVs – the VF5 and VF e34 – along with dealerships and also a battery subscription programme.
Temmy Wiradjaja, CEO of VinFast Indonesia, said: “The groundbreaking event highlights the company’s strategic expansion and competitive drive in the region, marking a key milestone in our strategy to become a leading player in the region’s most promising electric vehicle markets.”
This clearly marks a shift of focus to emerging markets like India and Indonesia, where the EV industry growth potential is considerable.
US plant opening deferred to 2028
Vietnamese electric vehicle manufacturer VinFast, which had broken ground on its first EV factory outside of Vietnam on July 28, 2023 in Chatham County, North Carolina, has deferred the opening of the plant to 2028, three years later than scheduled.
VinFast’s North Carolina plant, which was slated to commence production in 2025, has a Phase 1 investment of US$ 2 billion (about Rs 16,579 crore) and will focus on building VinFast’s VF7, VF8 and VF9 EVs with an expected production capacity of 150,000 units per annum, similar to the VinFast India project, which is coming up at Thoothukudi in Tamil Nadu. The VinFast India plant is scheduled to open in the first half of CY2025, ahead of the Indonesian plant.
In an official communication, VinFast stated: “VinFast has made the strategic decision to adjust the timeline for the launch of its North Carolina manufacturing facility, which is now expected to begin production in 2028. This decision will allow the company to optimize its capital allocation and manage its short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations.”
Madam Thuy Le, Chairwoman of the Board of Directors, VinFast stated, “We have adopted a more prudent outlook that is carefully calibrated to near-term headwinds, taking into full consideration the realities of market volatility and potential challenges. Our robust long-term strategy and proven execution capabilities position us well to meet the evolving needs of the dynamic global EV market.”
VinFast sells 21,747 EVs in first-half 2024, up 92%
Meanwhile, on July 12, 2024, VinFast announced its sales results for the second quarter of 2024. In Q2 CY2024, the EV maker delivered 12,058 vehicles, representing an increase of 24% quarter-over-quarter and an increase of 26% compared to the same period last year. Through first-half 2024, VinFast has delivered 21,747 vehicles, up by 92% compared to H1 2023.
According to the company, ongoing economic headwinds and uncertainties in different macro-economies and global EV landscape have necessitated a more prudent outlook for the rest of the year. The company now anticipates delivering approximately 80,000 EVs in 2024, compared to 34,855 vehicles delivered in 2023, or nearly 130% year-on-year growth.
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