By Phuong Nguyen and Kritika Lamba (Reuters) -Vietnamese electric vehicle maker VinFast on Thursday reported a wider second-quarter net loss as it stepped up spending on expansion and marketing to support its ambitious growth strategy. The EV maker reported a net loss of $812 million for the quarter ended June 30, 15% wider than the […]
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Electric car maker VinFast’s quarterly loss widens due to heavy spending
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By Phuong Nguyen and Kritika Lamba
(Reuters) -Vietnamese electric vehicle maker VinFast on Thursday reported a wider second-quarter net loss as it stepped up spending on expansion and marketing to support its ambitious growth strategy.
The EV maker reported a net loss of $812 million for the quarter ended June 30, 15% wider than the previous three months. Revenue rose 1.9% from the prior quarter and 91.6% year-on-year to $663 million.
Vehicle deliveries climbed 172% year-on-year to 35,837 units in the quarter, with its home market of Vietnam remaining its largest.
That took first-half deliveries to 72,167, leaving it with significant work to do to reach its 200,000 unit annual sales target.
“Normally deliveries in the first half of the year accounted for about 30% of the total,” Chairperson Thuy Le told Reuters.
“We still have a lot to deliver toward the end of the year, both in Vietnam and in international markets including Indonesia, the Philippines, India and (the) North American market.”
The company, which transitioned to producing exclusively electric vehicles in 2022, said it is confident in meeting its delivery targets for 2025 and reaffirmed its commitment to break even by the end of 2026.
“In any business at the beginning, you have to take some losses, but the gross margin is improving, and we are still heading toward breakeven,” Le said.
The group last month spun off its research and development assets to its founder and CEO Pham Nhat Vuong for $1.5 billion to support its expansion plans.
It has ramped up promotional activities in Vietnam, while shifting to a dealership-based model to cut costs and accelerate expansion.
It recently opened a new assembly plant in India, and has plans to establish another facility in Indonesia which is scheduled for the technical start of production by the end of the year, Le said.
(Reporting by Kritika Lamba and Phuong Nguyen; Editing by Vijay Kishore and Jan Harvey)