VinFast Auto Makes a Big Splash but Might Be More of a Sell Than Ever

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It has been lauded for its state-of-the-art manufacturing based in Vietnam, where it dominates its home auto market and boasts the backing of an extremely wealthy founder and parent company. It even had ambitious plans to more lucrative Western markets.Unfortunately, the company has lost its luster with investors, and its entry into the U.S. was largely a failure. Now the company is retrenching in its regionak markets with some ambitious ideas.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »While VinFast isn't giving up on getting to Western markets, the electric vehicle (EV) maker is going back to its early days by zeroing in on India's massive two-wheeler market. VinFast has already begun selling and assembling a limited vehicle lineup in India this year but has now confirmed plans to bring three of its electric scooters, the Evo, Feliz, and Viper, to India.The early plan calls for units to arrive as completely knocked-down (CKD) kits to be assembled locally at VinFast's plant in Tamil Nadu. Longer-term plans call for a deeper localization of production and full-scale manufacturing in India. It's a big deal for VinFast. India is a top motorcycle and scooter market in the world by volume, with millions of units sold annually and an increasing appetite for electric mobility.Image source: Getty Images.In a way, VinFast is going back to its roots. While VinFast was founded in 2017 and initially produced cars in 2019, it introduced its first e-scooters in 2021 before transitioning to 100% EV production at the end of 2022. Here's the kicker: Morotized scooters aren't recreational vehicles in India the way they are in Western markets. These types of scooters are essential for daily transportation for a big chunk of the population, and increasingly that transportation is switching to electric.It's a part of a bigger pivot after the company struggled to gain any traction in the U.S. market with EVs. Now VinFast is more focused on expanding in emerging markets in Southeast Asia and India with demand and government support -- think Indonesia, India, and the Phillipines.VinFastis back to focusing on emerging markets with demand for electrification, and making a big splash in India are all positive, but is VinFast a good investment?While many automotive manufacturers focus on higher total profit per vehicle, despite notoriously low margins, or losses for most EVs, the e-scooter business is typically different in that it can generate higher margins but lower total profit per vehicle -- a sedan can sell for 10 to 15 times a scooter's cost, or more. That means VinFast needs impressive scale, sooner rather than later, for its e-scooters to make a strong financial impact. India has the potential to drive scale for the Vietnamese EV maker's e-scooter business, but it will face entrenched competitors with hefty market share.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBTC-USD Bitcoin USD 71,620.98 -1,261.04 (-1.73%)ETH-USD Ethereum USD 2,215.30 -31.10 (-1.38%)CL=F Crude Oil May 26 96.57 -1.30 (-1.33%)XRP-USD XRP USD 1.33 -0.02 (-1.25%)BTC-EUR Bitcoin EUR 61,076.16 -1,075.38 (-1.73%)PortfolioSign in to access your portfolioSign inTop gainersOGN Organon & Co. 8.83 +1.92 (+27.79%)XNDU Xanadu Quantum Technologies Limited 8.96 +1.31 (+17.12%)ALAB Astera Labs, Inc. 149.05 +19.59 (+15.13%)MANE Veradermics, Incorporated 68.80 +8.82 (+14.70%)TTMI TTM Technologies, Inc. 121.49 +13.96 (+12.98%)Top losersFSLY Fastly, Inc. 23.07 -6.39 (-21.69%)AKAM Akamai Technologies, Inc. 91.35 -18.26 (-16.66%)FICO Fair Isaac Corporation 922.37 -149.98 (-13.99%)SEZL Sezzle Inc. 59.71 -9.42 (-13.62%)NET Cloudflare, Inc. 166.99 -26.06 (-13.50%)Most activeNVDA NVIDIA Corporation 188.63 +4.69 (+2.55%)PLTR Palantir Technologies Inc. 128.06 -2.48 (-1.90%)HOLX Hologic, Inc. 76.01 0.00 (0.00%)INTC Intel Corporation 62.38 +0.66 (+1.07%)NOK Nokia Oyj 9.46 -0.09 (-0.94%)Top economic eventsEarnings eventsMy earnings eventsEarnings events