Vietnam EV maker VinFast to wage promotion war to fend off Tesla price cut

Vinfast is doggedly determined to challenge the supremacy Tesla enjoys the world over and, specifically, in the US. The Vietnam-based electric car maker is all set to enter the US market and is now considering a number of promotions to make its offerings more lucrative for potential buyers.

Vinfast may have only started its operations in 2019 but in the past three years, has taken rapid strides. The eye is firmly set on the US market now even if the dominance of Tesla is amply evident. But while Tesla has announced price cuts on several of its models to bolster sales, an unfazed Vinfast has come up with a counter strategy. "As a new brand entering the market, when other brands reduce their prices we have to come up with promotions to ensure VinFast's competitiveness," a statement from a company spokesperson read, according to Reuters. "We are considering many promotion programmes and will announce soon."

It is not yet clear if the said promotions will also include price cuts. Vinfast VF8 and VF9, the two models that will make debut in the US, have starting prices of $59,000 and $83,000, respectively.

Tesla, meanwhile has slashed prices of its basic Model Y from $65,990 to $52,990. The company has announced similar price cuts even in China, the world's largest EV market.

Taking on Tesla won't be easy but Vinfast is assuming a confident face and says it has around 65,000 global orders already. The company also highlights it expects to sell over 7.5 lakh units each year from 2026. The first batch of around 1,000 EVs from its home base have already started shipping to the US. An EV plant in North Carolina is also in the works.