VinFast foresees opportunity to break even as EV sales expected to make huge jump
VinFast LLC, a fast growing Singapore-based automobile manufacturer, foresees an opportunity to break even as sales of its electric vehicles (EVs) are expected to make a huge jump this year.
The manufacturer is quite confident that it will be able to sell as many as 50,000 EVs in 2023, which would be represent a huge increase in sales year-over-year. Last year, the company sold only 7,400 EVs. However, one must not ignore the fact that last year the company was selling EVs only in its home market of Vietnam.
Over the past few months, VinFast took a number of steps to spread its feet into global markets. Its EVs are already available in North American markets like the United States, while European markets are expected to get them sooner than later.
Nhat Vuong, the chairman & founder of VinFast, said that the company would likely be able to achieve break even by the end of 2024, which would undoubtedly be a heroic feat. Preliminary estimates suggest that the company could sell 40,000 to 50,000 electric cars this year. However, the billionaire entrepreneur admitted that the market is full of competitors and the current economic conditions are not very encouraging. The seasoned investor made it very clear that VinFast, like several other manufacturers, will have to wait for the market to improve before becoming profitable.
Commenting on the company’s future, Vuong also predicted, "When the market is robust again and sentiment improves...VinFast will bring back financial happiness.”
VinFast, which is looking to break by the end of next year, received significant donations/fundings of around $2.5 billion from its parent firm Vingroup as well as its founder Vuong. By the end of last year, the parent firm had funded VinFast to the tune of around $8 billion. However, the automaker has thus far failed to turn profitable.
It is also worth-mentioning here that the upcoming SPAC merger will also require VinFast to come up with ways to accrue funds. In this regard, Vingroup is quite confident that the upcoming stock listing will open up new fundraising opportunities as global investors will be able to invest in the business.
Meanwhile, the Vietnamese automaker is also mulling plans to launch two additional models, one of which will be a mini city car, while the other will be an electric pickup truck.