Vietnam’s VinFast presents models, prices
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VinFast, a subsidiary of Vietnam’s biggest private firm Vingroup, presented three models and their prices at its maiden show in Hanoi Tuesday afternoon. Its five-seat sedan Lux A2.0 and seven-seat SUV Lux SA 2.0, which had already been revealed to the public for the first time at the Paris Motor Show last month, cost VND800 million ($34,305) and VND1.136 billion ($48,709) respectively.
The smaller hatchback Fadil, presented for the very first time, costs VND336 million ($14,410).
These prices are exclusive of a 10 percent value added tax.
The company said it was announcing favorable prices for the “initial phase.” The original prices of the hatchback, the sedan and the SUV are VND423 million ($18,140), VND1.336 billion ($57,300) and VND1.818 billion ($78,000) respectively, it said.
VinFast surprised industry insiders by completing its first two units, the SUV and the Sedan, within one year.But VinFast did not say for how long the promotional prices will last or how many cars will be produced in the initial phase.
Its first two models are built on frames from BMW. Their components have been engineered by Canadian firm Magna International’s Magna Steyr, while design work was done by Italian design house Pininfarina.
The small hatchback, Fadil, meanwhile, was developed from the background of the Opel Karl Rocks model in the European market. Its structure is almost equivalent to the latest Chevrolet Spark generation.
Attending the exhibition, Prime Minister Nguyen Xuan Phuc said building strong Vietnamese brands means promoting patriotism, self-reliance and self-esteem and building a consumer culture in Vietnam.
“I hope more Vietnamese companies and entrepreneurs follow in the footsteps of VinFast to express an aspiration to dominate the domestic market and reach out to the international level.”
Vietnam’s population is around 93 million, larger than South Korea, but car consumption is only around 300,000 units a year, he said. Previously, Mike Dunne, an independent industry analyst who has spent more than three decades in Asia, said that he doubted VinFast cars would generate much demand in a country with an average income of $2,385 last year.
While there is little doubt the market would grow, it won’t happen fast enough to absorb VinFast’s production, planned at 250,000 vehicles annually, he added.
There are only 358 businesses in the auto industry in Vietnam compared to 2,500 in Thailand, according to the Ministry of Industry and Trade. Over 90 percent of auto parts are imported, it added.
Questions & Answers
Q.How do the current prices for VinFast's new models compare to their original intended prices?
How do the current prices for VinFast's new models compare to their original intended prices?
The sedan's current price of VND800 million is lower than its original VND1.336 billion. The SUV, priced at VND1.136 billion, was originally VND1.818 billion. The hatchback is VND336 million, down from VND423 million.
Q.Which companies were involved in the engineering and design of VinFast's sedan and SUV models?
Which companies were involved in the engineering and design of VinFast's sedan and SUV models?
The frames for these models are from BMW. Canadian firm Magna International's Magna Steyr engineered their components, while the design work was completed by Italian design house Pininfarina.
Q.What concerns have been raised about VinFast's production targets and the Vietnamese market's capacity to absorb them?
What concerns have been raised about VinFast's production targets and the Vietnamese market's capacity to absorb them?
Industry analyst Mike Dunne doubted that a country with an average income of $2,385 could generate enough demand for VinFast's planned annual production of 250,000 vehicles, suggesting the market won't grow fast enough.
Q.What is the primary difference in origin or development between the Fadil hatchback and the Lux A2.0 and Lux SA 2.0 models?
What is the primary difference in origin or development between the Fadil hatchback and the Lux A2.0 and Lux SA 2.0 models?
The Lux models are built on BMW frames, with components engineered by Magna Steyr and design by Pininfarina. The Fadil hatchback, however, was developed from the Opel Karl Rocks model.
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