Rapid launch
The VinFast story is only beginning, and yet this extremely young company is already off to a fascinating start. Founded in just 2017, their first cars started rolling off the assembly line in 2019 at VinFast’s 800-acre facility in Vietnam. While the “Fast” in its name is more intended for the EVs they are producing, it can also be attributed to the speed with which the company has gone to market with its models.
The obvious question – when product development cycles historically take about 5 years to launch a new model - how did VinFast go to market so … fast?
Established by Vietnam’s first billionaire, Phạm Nhật Vượng, VinFast has the backing of the Vingroup, the massive conglomerate where Vượng is not only founder, but CEO. Thus, VinFast hasn’t experienced the same type of financing challenges facing typical startups in its journey to become the first Vietnamese automaker to export to the United States.
Similar to the launch of Tesla with its debut “Roadster” sharing components with the Lotus Elise, VinFast was also able to cut its go-to-market time by launching models that shared components with existing OEMs. The VinFast LUX SA2.0 SUV was based on the F-15 Generation BMW X5 that was leaving the market as the LUX was entering. Likewise, their sedan, the VinFast LUX A2.0, was based on the F10 BMW 5-series.
While I never had the opportunity to see either model in person, both their interior and exterior designs were more elegant than the VinFast EVs shown at the LA Auto Show. Perhaps, it was the BMW DNA showing through. The LUX SA2.0 and LUX A2.0 looked like premium offerings the way the new lineup does not.
American Aspirations:
With their Raleigh, NC manufacturing plant poised to start vehicle production in 2024, VinFast will be producing EVs in America within 2 years. Already engaging customers on our shores at “Experience stores” launched in California and Toronto, one of their most promising methods will be via Autonomy. The nation’s largest electric vehicle subscription company, Autonomy, has ordered over 2,000 VF8 and VF9 SUVs from VinFast. It is a smart strategy to get Americans behind the wheel of a new to market product in a low-risk manner. Potential competitor Fisker discussed subscription plans for their new Ocean SUV at last year’s show. Without the established dealer network or name recognition of legacy brands that are more in line with their price point, VinFast needs these other outlets to get on the radar of potential buyers.
The Pininfarina-designed VinFast reminds me more of another historic automotive P-name – Pontiac. Now, this isn’t intended as an insult, but there’s something about VinFast that evokes what a modern-day Pontiac may have looked like. Compare the front of a 1977 Pontiac Firebird Trans Am split grille with the front of the VinFast VF9. The Pontiac arrowhead symbol further emphasizes the similarities.
Following a similar U.S. launch to Kia nearly 30 years ago, VinFast is an Asian automaker providing value for the dollar including a 10-year, 125k mile bumper-to-bumper warranty along with an EV battery warranty of 10 years/unlimited miles.
The 2022 Concepts: VF9
I was first introduced to VinFast at the 2021 LA Auto show. The stylish concepts were essentially exterior-only but provided a clear idea of what to expect from the new Vietnam-based EV startup. Now, the brand has a lineup of functioning versions of last year’s concepts to explore.
First up is the VF9 – the largest model, a 3-row crossover sized similarly to a Ford Explorer. With a starting price of $76k, it is incredibly close to the $78k base price of the Rivian RS1. Now, Rivians will option out for close to or over $100k. While the Rivian is more “truck-like” in intention, the overall elegance and style has deservedly put Rivian at the front of the EV SUV pack. The VF9 simply looks too much like the ICE SUVs already seen everywhere on American roads. There are neat EV-like features – such as a longer wheelbase, and it has a lower, more practical ride height than the Rivian; However, on looks alone, the VF9 is more of a decent rookie effort than a revolutionary win out-of-the-gate.
It can take brands a while to nail their own aesthetic (look at Kia), I have a feeling it will take Vinfast at least another generation to do so. Joining the VF9 are the VF6 and VF7 (which is the most promising). Unfortunately, these designs already look a bit dated - especially when compared to other EVs. The most radical recent designs have come from EVs as their chassis facilitates a range of stylistic variations compared to their ICE-based counterparts. Thus, pushing the envelope of design is expected whereas VinFast played it safe.
With other EVs, the interior is extremely wide open, with flexibility being the first thing one notices. However, things in the VF9 appear more claustrophobic – perhaps the massive 2nd row center console doesn’t help. That’s not to say the seats aren’t comfortable – there’s plenty of room in the 2nd row captain’s chairs.
In a lot of ways, the VF9 answers the needs of most families looking for a 3-row EV. But there are some concerns. Entry and egress to the rear quarters was troublesome. Retractable running boards might be an essential luxury feature on the Navigator, but for a lower, car-based SUV like this one it is unnecessary and proves to be more of a nuisance. Three mini steps were required to access the third-row seat. Making matters worse are tracks alongside the 3rd row which are poorly placed, easy to land on, and narrow the third seat room.
These inconveniences can be deal breakers for families - the VF9’s key demographic. This doesn’t help the already uphill battle facing a new company competing against brands with either decades of loyalty or more cachet.
It’s not a bad looking vehicle; the C-pillar is quite distinct. But overall, is it as eye-catching as a Telluride?
But who really is VinFast’s key competitor? From what I can see – they aren’t as sporting focused as Tesla – or as upscale. My best comparison for the VF9 is if the Honda Pilot were an EV. Which brings me to another point – the Japanese are lagging on the EV front, and in general, there aren’t a lot of 3-row EVs forecasted in the near term.
When I look at the EV market, I have seen one gaping hole over the last few years – the lack of a family-sized EV. It’s surprising this white space has been ignored for so long. The upcoming Kia EV9 will certainly be a strong player along with the Volvo EX90. The Volvo will come with a price premium, and if the EV9 is like other recent in-demand Kia offerings – it could sell well above MSRP.
Given that a lot of compact SUV EVs are priced in the $50k range, pricing in the $70k range is a natural next step. However, VinFast could really distinguish itself if it provided 3 -row space at a 2-row price. It’s a new brand without name recognition. The American market warmed up to Telsa and Rivian, but those evoke an image and innovation all their own that befits a price premium.
Since EVs lend themselves to being at the forefront of innovation, they’re typically the premium models in the lineups of legacy ICE brands. Or, in the case of startups, EVs come to market essentially as luxury makes. Thus, VinFast would have had potential to be the first more “mainstream” EV brand, if the VF9 didn’t start at around $80k! Yes, it is the flagship of the lineup. But, given the lack of 3-row EVs on the market, the VF9 is more likely the entry point to the brand than the smaller VF8.
The 2022 Concepts: VF6, VF7, and VF8
In explaining the design, Dave Lyon, Director of Design for VinFast, said that the front and rear VinFast signature lighting is intended to make a statement day or night. These models were designed from the inside out to feel larger and more spacious inside. The traditional instrument cluster has been replaced with a head up display to give the driver a panoramic view of the road.
If a driver is in need of maintenance, VinFast will go to the customer rather than the customer going to them. Should a customer become stranded, Vinfast will arrange a rideshare service to get them where they need to go.
The VF7 is the most modern looking by far of the 4-SUV lineup and likewise the only one to turn heads. Returning to the VinFast theme of speed to market, the time between initial sketch and finished production model was less than 9 months. The lean focused design experts worked 100% virtually and skipped the traditional clay design model. The long wheelbase was intended to almost eliminate overhangs in the front and rear as well as to improve ride and space.
Overall, it’s impressive that VinFast has 4 SUV designs ready to go. The VF8 in particular looks dated already for something that still isn’t on the market yet. It bears a strong resemblance to the Renault Koleos and Renault Arkana which are sold in other markets. The VF8 is sized most closely to the Tesla Model Y and Kia EV6 which are style leaders in the segment. But unlike other automakers, VinFast has two more models on the horizon (VF6 and VF7) that are sized below the VF8.
As one of the first import EV makers, I think the biggest challenges will be reaching customers. Tesla and Rivian haven’t seemed to have a problem here, but they are both American companies that also come with a degree of novelty.
Sized between the Chevy Bolt EV and the Chevy Bolt EUV, the VF6 will be one of the smallest EVs in the American market. However, it is a much cleaner looking design than either Bolt. The VF6 serves as a gateway to the brand that will be particularly attractive to city dwellers.
Launch Strategy
Most EV makers have launched with a single model. Fortunately for some of these, such as Lucid with the Air, they knock it out of the park. However, there is a lot more weight on each of these single models to succeed as they are the first and only impression of the brand. By rolling out two models simultaneously with another two nearing production, VinFast alleviates the pressure on one single model, which should work in their favor whereas other startups have risked being dead on arrival.
Time will only tell how this Vietnamese upstart will be received in the US. By hedging their bets with a 4-SUV lineup and strategically leveraging subscription opportunities to reach buyers via Autonomy, VinFast has the potential to be the first exclusive import EV maker to sell mass market vehicles here. With EV demand outpacing supply and a lack of 3-row EV SUVs, the time is now to break into the market. And the faster Vinfast gets on the road, the better.
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