Key highlights
- Vinfast reports sixth consecutive quarterly loss
- Low demand and stiff competition main reasons
- The brand is soon going to enter the Indian EV market
Vietnamese electric carmaker VinFast has reported its sixth consecutive quarterly net loss. The brand is ready to enter the Indian car market soon. Read its complete details below.
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VinFast’s low sales globally – Why is it failing?
As per the LSEG data, VinFast has reported its sixth consecutive quarterly loss. The released data show a net loss of $712.4 million for the first quarter. This loss is 20% more than the first quarter’s loss, while the second quarterly loss was reported to be a massive $1.3 billion.
The main reason behind the reported loss is the low demand in the international market. Moreover, the brand has been continuously spending on its sales boost, which has eventually turned into negative profits.
Meanwhile, the EV maker had its keen eyes on the US electric car market, but those dreams have been shattered recently by the US import tax tariff of 25%. Additionally, the carmaker is facing strong competition from Chinese EV brands like Dongfeng and BYD.
Speaking of the revenue, the brand registered a jump of 150% to $656.5 million in the January-March ’25 quarter. The delivery scale in its domestic market, i.e. Vietnam, also scaled by 300%. However, the R&D expenses fell 22.3% Y-o-Y in the previous quarter.
Since the brand had a lot of expectations from the US market, it has now shifted its focus to the Asian market. In fact, its first local assembly in India is soon going to become operational in July 2025.
India is likely to receive the first VinFast car, which is the VF7, by this festive season. Following the VF7, the smaller VF6 will also be launched, which will compete with the Tata Curvv EV in India.
Our verdict
While VinFast’s global operations are expanding, it is undergoing a negative profit stage, which is essential for any brand in the expansion phase. The company is already backed by a $2 billion investment from the founder’s office. With that said, its Indian debut can prove fruitful in the long run for sales and exports.