HANOI (Reuters) – Vietnamese electric vehicle (EV) maker VinFast has signed a first partnership with North Carolina-based U.S. dealership Leith Automotive to increase sales in the local market, the two companies said THURSDAY.
In an interview with Reuters in August, VinFast’s chief executive announced a change in the company’s distribution model, which was based on Tesla’s direct-to-consumer approach, to a “hybrid” model including dealerships.
In addition to providing VinFast with a first point of sale, Leith Automotive will handle repairs, maintenance and replacement of parts required for VinFast vehicles, according to the joint statement.
The Vietnamese company owns a manufacturing plant in North Carolina worth $4 billion. It should enter service from 2026.
Founded in 2017 and backed by Vietnam’s largest conglomerate Vingroup, VinFast began delivering electric cars in California in March and debuted on Nasdaq at the end of August.
Last month, the electric vehicle maker said it received 70 inquiries from dealers across the United States. If approved, this would allow VinFast to distribute its EVs through 125 points of sale nationwide, the group explained.
VinFast is entering the US market at a time when EV prices are under pressure, led by market leader Tesla and a string of Chinese companies.
The company sold about 13,000 units worldwide in the second and third quarters this year, more than half of them to an affiliated company owned by its founder.
(Reporting by Phuong Nguyen; by Gaëlle Sheehan, edited by Kate Entringer)
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