The car brand VinFast was founded in 2017. He is headed by the first Vietnamese dollar billionaire Pham Nyat Vuong, who made a fortune on instant noodles and real estate (note, the businessman was educated in Moscow). In October last year, the brand had its own stand at the Paris Motor Show, where the concepts of the Lux A2.0 sedan and the Lux SA2.0 crossover were presented. These cars are based on licensed platforms from the previous BMW 5 Series (F10) and BMW X5 (F15), respectively, and the Italian Pininfarina atelier “painted” them. Of course, the Vietnamese rank their cars in the premium segment.
The booth at the Paris Motor Show explicitly hinted at plans for the European market; in the spring of 2019, it became known that the brand intends to start selling cars in Russia (VinFast applied for registration of car designs in the Russian Federation), and now Bloomberg reports on the next goal of the “Vietnamese luxury” – the US market.
According to the agency, the young company intends to master the production of electric vehicles in Vietnam by the end of 2020. In the 2021st they will begin to be exported to the States, Russia, and also to the countries of the Old World. It is curious that the company has no prototypes of future “outlet” models. So it’s not clear which cars with VinFast logos will come to conquer new markets.
At the same time, in order to achieve an ambitious goal, the brand owner intends to part with about 10% of personal shares, that is, lay out about $ 2 billion out of his pocket. Despite a rather impressive amount and a bold step, success for the brand will be very, very difficult. Firstly, the Vietnamese manufacturer will face tough eco-standards, as well as safety requirements. Secondly, it is very difficult to convince the residents of these markets, literally generations who bought cars of the same brands, to switch to something new (and the production of a country that is not associated with the production of cars). Thirdly, do not forget that electric cars have not yet become a globally massive phenomenon. Perhaps in Europe there is enough infrastructure for them, in the USA there may also be a “niche” buyer, but in Russia … we can say with a very high degree of certainty: until 2021, the popularity of “outlet” machines will not grow much, but now their sales , without understatement, piece.
At least Pham Nyat Vuong is aware of the “number one problem.” And all the same, he believes that the home market, where VinFast bypasses sales by Ford, Toyota, and Hyundai, is “too small”, which means that export abroad is necessary. The businessman calculated that the company would not be profitable for five years. By 2025, the company intends to produce up to 500 thousand cars a year.
Now the model line of the brand includes not only serial versions of the Lux SA2.0 crossover and Lux A2.0 sedan, but also the so-called high Fadil hatchback, which is a converted Opel Karl Rocks. The company bought a license for it from the American concern General Motors simultaneously with the Hanoi plant (now the Opel / Vauxhall brand belongs to the French group PSA).