VinFast to Stop Making ICE Vehicles
Vietnam’s automaker VinFast has announced to stop making internal combustion engine (ICE) vehicles from the end of this year, which is just two-and-a-half years after its first vehicle rolled off its northern Vietnam assembly lines. VinFast is planning to ramp up global sales of its electric SUVs with plans for EV factories in USA and Germany.
The company plans to focus solely on electric vehicles because it presents it with a big opportunity in a nascent market, the vice chairwoman of Vingroup JSC – the parent company of VinFast, Le Thi Thu Thuy said.
“The field of electric cars is still in the early stages of development, the level of competition is not too fierce and there is still room for breakthroughs for new brands”
She added that VinFast is facing an international market with the potential of more than one billion gas-powered cars that will be replaced by electric cars in the near future. In November 2021 at the Los Angeles Auto Show, the company unveiled two electric SUVs and then in January 2022, three more EVs at the CES 2022.
VinFast now has 5 EVs, all indigenously designed, the first two among which it plans to deliver in California, Canada, France, Germany and the Netherlands towards the end of this year. The company’s upcoming US EV factory with an investment of up to $1.5 billion, will have a capacity to produce 250,000 vehicles a year, that will also include battery and electric bus plants.
VinFast is also working with the Germany Trade and Invest (GTAI) economic development agency to find a location for its EV plant in Germany, but didn’t revealed timeline for the start of construction.