By Phuong Nguyen
HANOI (Reuters) – Vietnamese electrical automobile (EV) maker VinFast (NASDAQ:) is delaying the launch of its deliberate $4 billion manufacturing facility in North Carolina to 2028 and reducing its supply forecast for this yr by 20,000 items amid uncertainties within the world EV market.
VinFast, based by Vietnam’s richest man Pham Nhat Vuong in 2017 and which turned to creating absolutely electrical automobiles in 2022, stated it could now ship 80,000 automobiles this yr, down from the initially deliberate 100,000.
Gross sales on the Vietnamese EV maker rose 24% to about 12,000 automobiles within the second quarter, in contrast with the earlier three-month interval. In complete, VinFast bought 21,747 items within the first half of 2024, a rise of 92% in opposition to the identical interval final yr, however round one-fourth of the brand new yearly forecast.
“Whereas the second-quarter supply outcomes had been encouraging, ongoing financial headwinds and uncertainties in numerous macro-economies and (the) world EV panorama necessitate a extra prudent outlook for the remainder of the yr,” VinFast stated in an announcement on Saturday.
The EV maker nonetheless expects sturdy gross sales development within the second half of the yr, pushed by a various product vary and enlargement in key areas, together with new markets in Asia and present markets.
In its assertion, VinFast stated it could delay the launch of its deliberate manufacturing facility in North Carolina to 2028 from the present plan of 2025. Reuters had reported a attainable delay in Might, citing an individual briefed on the matter.
VinFast had introduced in 2022 that it could construct an EV and battery manufacturing facility in america with an annual manufacturing capability of 150,000 automobiles, in search of to reap the benefits of the Biden administration’s efforts to approve subsidies for EVs made in America.
Nonetheless, demand for EVs has faltered amid excessive borrowing prices and as patrons flip to cheaper gasoline-electric hybrids, forcing many automakers to reassess their plans for brand spanking new factories and fashions.
“This resolution will permit the corporate to optimize its capital allocation and handle its short-term spending extra successfully, focusing extra sources on supporting near-term development targets and strengthening present operations,” VinFast stated.
“The adjustment would not change VinFast’s basic development technique and key working targets.”
VinFast, which has but to make a revenue, logged a internet lack of $618 million within the first quarter. Income for the interval almost tripled from a yr earlier however tumbled 31% from the earlier three months.
The corporate is ready to announce its second-quarter outcomes on Aug. 15.