VinFast's decision was made in the context of European authorities taking a stricter view of Chinese electric vehicle companies.
According to Reuters, VinFast is planning to export its first electric cars to Europe this year after the European Union considered imposing import taxes on competitors from China.
Specifically, this electric car company will deliver about 3,000 cars to France, Germany, and the Netherlands in the fourth quarter of 2023. Thus, this Nasdaq-listed company aims to quadruple its sales on the old continent instead of the previous 700 cars.
VinFast's decision was made in the context of the fact that European authorities are taking a stricter view of Chinese electric vehicle manufacturers and are expected to impose import taxes, thereby creating a gap in the market.
If the plan is completed, Europe will become VinFast's largest foreign market this year. Previously, this business exported about 2,100 electric cars to the US.
Sharing with Reuters, VinFast CEO Le Thi Thu Thuy confirmed: "We expect to soon sell VF8 models in France, Germany, and the Netherlands in the last three months of the year." Meanwhile, other models such as the VF6, VF7, and VF9 will launch in this market in 2024, she added.
Ms. Le Thi Thu Thuy said that the VF8 model has been recognized as meeting standard conditions by EU competent authorities and can be sold in 27 countries. The company is also completing procedures to achieve a Euro NCAP safety rating.
According to consulting company Inovev, Europe is one of the major markets for Chinese electric car manufacturers, with 70,000 cars produced in the first 7 months of this year, nearly 3 times higher than the same period.
If the EU investigation process comes to the conclusion of imposing tariffs on Chinese electric vehicles, VinFast's products will have more competitive prices.
VinFast's VF8 model has a starting price of 50,990 euros (about 54,217 USD) in France. The Chinese-produced Tesla (TSLA.O) Y model, which is also threatened by EU tariffs, has a starting price of 46,000 euros.
VinFast's expansion into Europe is part of a global plan that includes building new factories in the US and Indonesia while also targeting India, the Middle East, Africa, and Latin America.
Right before listing on Nasdaq in August, the company promoted sales in the second quarter. There were 11,315 electric cars delivered to customers by VinFast at the end of June, most of them for the domestic market, thanks to the plan to sell cars to taxi companies. VinFast's first quarter revenue decreased by 49% compared to the previous year and had a net loss of 598 million USD.