Vinfast EV Production Delay and Sales Target Cut Announced
Vinfast Auto, a leading EV manufacturer based in Vietnam, has lowered its 2024 electric vehicle delivery target and pushed back the start of production at its North Carolina plant by three years. The shift reflects a cautious strategy in response to economic headwinds and market volatility.
Revised EV Delivery Targets and Global Expansion Plans
Vinfast now aims to deliver 80,000 EVs in 2024, down from a previous goal of 100,000 units. In 2023, the company missed its target of 40,000 to 50,000 units, delivering only 21,747 vehicles in the first half of the year.
The company’s $2 billion North Carolina factory, initially scheduled for 2025, is now expected to begin production in 2028. Despite the delay, Vinfast continues to expand globally. It is investing another $2 billion in a new facility in Tamil Nadu, India, set to begin production in early 2025 with a capacity of 150,000 EVs per year.
Industry Faces Geopolitical and Financial Pressure
Global EV and battery markets are being challenged by rising interest rates, tightening capital access, and increasing geopolitical trade tensions. For instance, new tariffs imposed by the US and EU on Chinese EVs, and possible duties from Canada, are reshaping the competitive landscape.
Vinfast’s adjusted strategy reflects a broader trend among EV makers navigating complex global dynamics while trying to maintain expansion plans and market presence.
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