VinFast Expects Sales to Founder's Taxi Venture to Extend Into 2024
US News is a recognized leader in college, grad school, hospital, mutual fund, and car rankings. Track elected officials, research health conditions, and find news you can use in politics, business, health, and education. VinFast, the founder of the company that makes electric car and scooter sales to an affiliated ride service owned by its founder, has not extended any financing or special discounts for the business. The large share of sales to Vuong's venture has prompted questions from analysts and investors on the company's most recent earnings call. VinFast CEO Le Thi Thu Thuy said the company had not provided any financing to GSM, and that more customers would consider a VinFast EV after experiencing the ride as a passenger. GSM has said it plans to expand beyond Vietnam and Laos to markets including India, Indonesia and the United States. After a stellar debut in mid-August, VinFast's shares have lost 84%, trading at $5.97 as of Wednesday's close as more shares are soon expected to hit the market.
Published : 2 years ago by Reuters in Auto
HANOI (Reuters) - VinFast expects electric car and scooter sales to an affiliated ride service owned by its founder to continue into 2024 and has not extended any financing or special discounts for the business, VinFast's chief executive said.
Those sales represented about two thirds of VinFast's EV sales over the first two quarters reported since its Nasdaq listing, and the large share of sales to Vuong's venture prompted questions from analysts and investors on the company's most recent earnings call.
In an interview, VinFast CEO Le Thi Thu Thuy said VinFast had not provided any financing to GSM. She said the company extended the same 10% fleet discount it would offer on any such transaction and expected more customers would consider a VinFast EV after experiencing the ride as a passenger.
"For the next two quarters we still see GSM having demand for our vehicles, both EVs and e-scooters," Thuy said. "That is going to continue into end of first quarter, even maybe the second quarter next year."
VinFast has previously said GSM had committed to deliveries of 30,000 electric cars and 200,000 electric scooters over two years starting from March this year.
A VinFast survey showed riders who had experienced a ride in a VinFast taxi operated by GSM were four times more likely to buy than customers who took standard test drives, she said.
In response to a question from Reuters, Nguyen Van Thanh, head of GSM, also said the fleet operator had not been given any financing or special discount.
GSM has said it plans to expand beyond Vietnam and Laos to markets including India, Indonesia and the United States. Thuy said those plans represented a growth opportunity for VinFast.
VinFast announced an earlier deal to supply 2,500 EVs to U.S. car subscription service Autonomy. Thuy said no deliveries had been made to Autonomy yet, and that VinFast was "working on options for contract execution."
After a stellar debut in mid-August, VinFast's shares have lost 84%, trading at $5.97 as of Wednesday's close as more shares are soon expected to hit the market. Vuong indirectly controls around 96.6% of VFS.